Comet Ridge Limited (COI) - Marketing gas into a favourable...

Comet Ridge Limited (COI) - Marketing gas into a favourable environment (Petra 1/8/23)

COI is working towards first gas from its 100% owned Mahalo North development in QLD’s Bowen Basin (Figure 1). Mahalo North will initially provide 5-10 TJ/d before a larger development is pursued to the south with JV partner Santos. Collectively, the broader Mahalo region contains 310 PJ of 2P Reserve (100% basis; net 195 PJ). Key ongoing activities include gas marketing and FEED progression. COI is marketing its gas at a favourable time with the government recently relaxing its Gas Code, which had previously contemplated price caps, allowing COI to realise full value across its large 195PJ net 2P Reserve position. Future GSAs, including with Orica, are targeted to provide development funding for COI along with offtake.

Maintain BUY, PT reduced to A$0.40/sh (prior A$0.42/sh) after a 6-month deferral to forecast first production.