The problem with trying to analyze the two recent announcements...

The problem with trying to analyze the two recent announcements is that they read as Directors Mccaul and Mckay deliberately try to bury important information in a lot of irrelevant information.

Here's my summary of the key points:

Mahalo

· There is no date for Mahalo FID (previously June 2020, before that it is at the end of 2018)

· They hope Mahalo First Gas is now 2023, but the joint venture has not agreed anything (previously First Gas was late 2021)

· Mahalo's production will now be 60 TJ/d (previously 80 TJ/d, before that it was 120 TJ/d)

· Funding for Mahalo's development could come from reserve-based loans, commercial bank debt or government infrastructure debt - the lack of clarity strongly suggests that they have made no progress on financing

· Comet will sell part of its 40% stake in Mahalo, reducing their influence in the joint venture

Don't forget that they reduced Mahalo's reserves last October...

Mahalo North

· The risk reduction plan for targeted assessment and evaluation with core holes and lateral wells during 2Q2020 has been delayed indeterminately

· There is still no clarity on how the gas will be exported from Mahalo North

o Over the past 3 quarters, Comet has signed 3 non-binding MOUs

§ Denison Gas (Q419),

§ LogiCamms (Q120) and

§ Now, MES

o According to the ESM website, they only had one test with a truck in 2015 and a truck test in 2016 - is this a credible solution??

· They seem to have gone backwards in the search for gas buyers, what happened to...

· “A gas sales MOU … signed with a high quality east coast industrial user which includes funding support for development” – AGM presentation in November, or

· “Memoranda of Understanding (“MOU”) with a number of high quality east coast counterparties, some of which included options around development funding arrangements” – ASX release October 2019

· Despite all this, they still believe first gas for Mahalo North will be in 2021

Galilee

· They spent $17 million over the 12 months ($23 million spent by the joint venture)

· Results?????????

Meanwhile, directors Mccaul, Mckay and others will continue to pocket their costs in very cheap Comet shares. Don't forget Mccaul gets about $400k per year, only temporarily reduced.

They think they can keep the shareholder-funded show on the road until the end of next year. The good times for the directors are set to continue!