Comet Ridge Takes Full Control of Mahalo Gas Hub in Santos Buyout
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Comet Ridge has finalized its acquisition of Santos’ 42.86% stake in the Mahalo Gas Project. This transaction grants Comet Ridge 100% ownership and operatorship of the entire Mahalo Gas Hub in Queensland.
The deal, originally announced in December 2025 and updated in May 2026, involved an upfront payment of A$24.42 million in cash and the issuance of 83.78 million Comet Ridge shares to Santos. Furthermore, Santos is eligible for up to A$30 million in contingent payments, structured as three A$10 million installments when cumulative sales from the project reach 10 PJ, 20 PJ, and 30 PJ.
Following the completion of this deal, Comet Ridge’s footprint spans roughly 1,850 square kilometers across several permits, including the Mahalo Gas Project, Mahalo North, Mahalo East, Mahalo Far East, and the Mahalo Far East Extension. This combined portfolio holds 361 PJ of 2P reserves and a total of 676 PJ of 2P reserves and 2C contingent resources.
According to Comet Ridge, consolidating ownership eliminates the complex joint venture structure that previously hindered funding and offtake negotiations. The company now retains complete control over capital allocation, development timelines, and project sequencing as it works toward a final investment decision.
Managing Director Tor McCaul highlighted that the acquisition positions the company in control of a rare, development-ready gas asset on the east coast. Located near the Gladstone LNG hub, the Mahalo assets are well-situated to supply the Australian east coast market. Additionally, Jemena was recently granted a pipeline license for infrastructure designed to link the development to the regional gas grid.
With full ownership secured, Comet Ridge is now focused on optimizing the development economics of the Mahalo project and integrating it with its neighboring assets.
