Comet Ridge Limited (COI) - Santos exercises option in Mahalo...

Comet Ridge Limited (COI) - Santos exercises option in Mahalo Gas Project ( Petra 27/9/22 )

STO has exercised its option to acquire a further 12.86% in the Mahalo Gas Project (MGP; Figure 1), taking its interest in the MGP to 43% (COI 57%). Consideration paid is based on a pro-rata rate with COI’s recent acquisition of APLNG’s 30% interest in the project for A$20m. STO exercised its option approx. 3 months prior to its deadline, indicating its intent to pursue an accelerated development of the MGP.
We believe this can alleviate STO’s issues in reaching nameplate at GLNG (Figure 1).
COI is well funded to pursue a catalyst-rich campaign over the next 6 months, including maiden Mahalo Reserves (early Dec.Q’22), Mahalo North/East core drilling (Dec.Q’22), FEED (Dec.Q’22) & Gas Offtake (Mar.Q’23).
Maintain BUY and PT A$0.42/sh (unchanged).