
Comet Ridge Limited (ASX:COI) has initiated its Mahalo East Pilot Production Scheme, marking a significant milestone in the company’s gas exploration efforts.
The project, which commenced operations late last week, is part of Comet Ridge’s strategic development in Central Queensland.
The Mahalo East 1 (ME1) vertical and Mahalo East 2 (ME2) lateral wells, drilled in October and November 2024, form the core of this pilot scheme.
The ME2 lateral well successfully intercepted the ME1 vertical well, achieving an impressive 1,338 metres of coal drilling.
As the pilot production testing begins, reservoir fluids, including water and natural gas, are expected to flow from the natural coal fractures through the ME2 lateral well path and into the ME1 vertical well.
From there, the fluids will be brought to the surface, with water lifted by a downhole pump.
Preliminary results from the laboratory analysis of core samples taken from the ME1 vertical well have been promising, with strong gas volumes observed desorbing from the coal samples.
This data suggests potential for significant gas production from the site.
In preparation for the production phase, Comet Ridge completed several key installations in November 2024.
These include production tubing and a downhole progressive cavity pump in ME1, as well as a production separator, flare, and metering skid relocated from the Mahalo North pilot area.
A temporary lined ring tank was also set up to manage produced water.
The Mahalo East project has received substantial support from the Queensland government’s Frontier Gas Exploration Grants Program, with Comet Ridge securing a $5 million funding allocation.
This backing underscores the project’s importance to the region’s gas exploration and production efforts.
Comet Ridge plans to provide further updates on the Mahalo East Pilot Production Scheme as operations progress.
The success of this project could significantly enhance the company’s position in the east coast gas market and contribute to the broader development of the Mahalo Gas Hub.