Mahalo North Project

ATP 2048

Mahalo North Pilot:

The objective of the pilot program was to demonstrate the production potential of a longer, development-length lateral well in the high productivity fairway and certify initial gas reserves and contingent resources.

Comet Ridge completed appraisal activities at Mahalo North in the second half of 2021:

• Drilling Mahalo North 1 vertical well and coring to confirm key coal reservoir data from lab analysis;
• Drilling Mahalo North 2 dual lateral well, which intersected Mahalo North 1 through the target coal reservoir; and
• Completed Mahalo North 1 wellhead and installation of surface production equipment.

 The Mahalo North Pilot achieved the highest recorded gas flow in the Mahalo Gas Hub area, confirming the high productivity fairway extends into Mahalo North.

Comet Ridge engaged Concept Environmental Services,  one of Australia’s leading providers of sustainable fluid solutions and renewable energy systems, to install a 7.3 ML storage tank to manage the produced water from the Mahalo North production test.

Gas Reserves and Resources:

Comet Ridge completed the successful Mahalo North 1 production test, resulting in Comet Ridge certifying initial 2P and 3P Gas Reserves for Mahalo North in November 2022 and then an upgrade of 3P Reserves in December 2023. The 3P Reserves upgrade was underpinned by five new geologic sectors being added to the Mahalo North Project 3P areas because of optimisation undertaken on project design during pre-FEED studies and additional open file data becoming available.

Development Approvals:

The initial gas development area will be in the south of ATP 2048 where Comet Ridge completed the Mahalo North 1 production test and where 1P and 2P Reserves are located. PLA 1128 was submitted by Comet Ridge in October 2023 for the initial development area and is awaiting approval by the Queensland Department of Resources after environmental approvals are secured. A second Petroleum Lease application (PLA 1132) was submitted by Comet Ridge in April 2024 and is in the early stages of assessment.

Following Gas Reserves certification, the Company’s focus over the past two financial years has been finalising the necessary work to support the environmental approvals required for PLA 1128 to be awarded and development activities to commence. These environmental applications were submitted in October 2023. Extensive environmental work was undertaken by Comet Ridge and its consultants, EPIC Environmental, comprising assessment of ecology, aquatic values, air quality, noise, and ground and surface water to support the environmental approval applications.

Queensland coal seam gas developments are required to undertake two separate, highly detailed environmental assessments for approval at both state and federal levels prior to development. State approval requires an Environmental Authority (EA) to be awarded by the Queensland Department of Environment, Tourism, Science, and Innovation (DETSI) and federal approval is required under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

The Queensland Government EA was awarded to Comet Ridge in August 2024, an important step towards the grant of PLA 1128 (the initial Mahalo North development area) by the Queensland Department of Resources. The scope of this approval includes installation of new production wells, compression and water treatment facilities, gas gathering systems and access tracks. The EA awarded to Comet Ridge contains numerous industry-standard conditions that the Company is required to meet to ensure the activities are undertaken without causing environmental harm or contravening noise and emissions standards while balancing the critical role that gas is anticipated to play as Australia transitions towards Net Zero.

A referral was submitted in October 2023 to the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) under the EPBC Act for the abovementioned initial development activities within PLA 1128. A summary of the process to date and remaining steps is outlined further below:

October 2023 – Comet Ridge submission of EPBC referral to DCCEEW;

March 2024 – DCCEEW notified Comet Ridge that the Mahalo North gas project would be a controlled action and assessed under Preliminary Documentation (PD). DCCEEW provided a detailed request for information (RFI), to supplement the information already provided in the initial submission;

December 2024 – Comet Ridge prepared the PD and submitted to DCCEEW;

March 2025 – Comet Ridge was informed by DCCEEW that the Independent Expert Scientific Committee (IESC) had reviewed the PD and provided their advice to DCCEEW. DCCEEW requested a response to the IESC advice as part of the PD submission;

July 2025 – Comet Ridge responded to the IESC advice and DCCEEW is currently reviewing the final PD submission.

Assessment under the PD process has required Comet Ridge to undertake additional field work relating to groundwater dependent ecosystems (GDE) to support its original submission in October 2023, including the drilling of monitoring bores and groundwater monitoring with monthly sampling analysis around GDEs. Following the public notification period (September 2025), DCCEEW will assess the entire PD submission and Comet Ridge anticipates this process to be completed before the end of 2025.

During the 2024 financial year, Comet Ridge executed a Conduct and Compensation Agreement (CCA) with the landholder that occupies the main Mahalo North development area within PLA 1128. This development CCA covers the initial production wells, roads and tracks, compression facilities (if required), water treatment and storage facilities as well as a small site office and accommodation. The total land area impact on this property is expected to be approximately 1% and the relationship with the landholder remains very positive. Comet Ridge will be able to supply valuable produced water for stock watering and agricultural use.

FEED activities – The proposed development scope within PLA 1128 will consist of interconnected horizontal and vertical well production pairs, gas and water gathering, a small gas compression facility, and water management infrastructure. Comet Ridge has advanced a significant amount of work on FEED activities for the Mahalo North development along with its main development consultants Verbrec (compression facilities), Wasco (construction activities) and Veolia (water treatment). FEED activities will be finalised once a decision is made on the optimal infrastructure solution for evacuation of Mahalo North gas production into domestic market sales opportunities.