Comet Ridge : 29 Jan 2021 Quarterly Activities Report and 5B

ASX Announcement

29 January 2021

December 2020 Quarterly Activities Report

Highlights

• Comet Ridge is posi�oning the mul�-block Mahalo Gas Hub to provide meaningful gas volumes into the east coast gas market, where southern produc�on is forecast to commence declining.
• Significant data analysis completed for Mahalo North (ATP 2048), which is expected to lead ini�ally to a material gas resource booking, followed by conversion to gas reserves from 2021 drilling campaign.
• Mahalo North (ATP 2048) drilling program advancing with well loca�ons selected and scouted.
• Mahalo Gas Project joint venture discussions progressed during the quarter with pathway for the �mely development of the project expected during the 1st half of 2021.
• The Mahalo Gas Hub area project funding process is ongoing and will be concluded following the finalisa�on of Mahalo Gas Project development pathway.
• R&D tax incen�ve applica�on for FY20 expenditure submited towards the end of the quarter, with $1.961 million of cash received in January 2021.

East Coast Gas Market

Southern Gas Produc�on Decline

EnergyQuest's December 2020 quarterly report con�nues to highlight the gas produc�on supply cliff facing southern Australia as shown in Figure 1 below. Produc�on from offshore Victoria, which supplies Victoria, Tasmania and a substan�al share of NSW and South Australian demand, is forecast to decline from around 2023, however it is en�rely possible that decline could occur even sooner than forecast. Otway Basin produc�on is already declining and Cooper Basin produc�on, which is also important for NSW and South Australia, is expected to start declining from 2026.

	Level 3, 410 Queen Street
	Brisbane Queensland 4000
A compelling east coast gas play	GPO Box 798 Brisbane Qld 4001
Phone [phone]
Comet Ridge Limited | ABN 47 106 092 577 | ASX: COI	Email: [e-mail]
cometridge.com.au

Figure 1 - Southern gas production outlook (PJ/a). Source: EnergyQuest, December 2020

South West Queensland Gas Flows

Queensland con�nues to supply significant (and ever increasing) volumes of gas west to Moomba in South Australia and then onto southern users from there, par�cularly during the winter months as shown in Figure 2 below. During the September 2020 quarter, Queensland was a net exporter of 19.6 PJ via the South West Queensland Pipeline.

Figure 2 - South West Queensland Pipeline flows, January 2018 to October 2020. Source: EnergyQuest, December 2020

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Wallumbilla Netback Gas Prices

Figure 3 below shows a strong recovery in netback gas prices in the December 2020 quarter as es�mated by ACCC. Netback gas prices botomed in July 2020 at $2.29/GJ and were recovering late in the year, reaching $7.61/GJ in December 2020.

Figure 3 - Wallumbilla historical netback gas prices ($/GJ). Source: ACCC; reported by EnergyQuest, December 2020

Opportunity for Comet Ridge

Since late 2019, Comet Ridge has established a significant gas acreage posi�on at the Mahalo Gas Hub, with three large 100% equity block awards from the Queensland Government, to complement Comet Ridge's 40% equity interest in the Mahalo Gas Project with Santos (30%) and APLNG (30%) where Origin is the Upstream Operator for APLNG. This gives Comet Ridge a net area posi�on of 1250 km2 and flexibility around how and when development occurs in the Company's 100% blocks. Field export pipeline capacity lies just to the west and trunklines into Gladstone for both domes�c gas and LNG op�ons lie just south of the Mahalo Gas Hub.

Given the increasing need for further gas supply to come rapidly into the East Coast Gas Market to replace the declining southern produc�on, Comet Ridge believes the Mahalo Gas Hub is well posi�oned to come online and deliver meaningful volumes of gas into that market, at a cri�cal �me.

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Mahalo Gas Hub Area

Status of Mahalo Gas Hub permits

Comet Ridge's Mahalo Gas Hub Area includes a number of large, high quality gas blocks, covering a significant area located approximately 240 km west of Gladstone in central Queensland.

Comet Ridge announced at the end of the last quarter that the Company was awarded two addi�onal gas blocks by the Queensland Government in the Company's emerging Mahalo Gas Hub area, in addi�on to the Mahalo North project (ATP 2048) which had been awarded in an earlier bidding round.

When combined with the Mahalo Gas Project and the 100% owned Mahalo North project (ATP 2048), these two new 100% awarded blocks provide Comet Ridge with a dominant posi�on in this emerging Mahalo Gas Hub area (refer Figure 4 below).

Comet Ridge entered into an overlap agreement with a nearby coal tenure holder which has resulted in Comet Ridge receiving a significant dataset of seismic data and core wells. During the current quarter, Comet Ridge has undertaken internal subsurface analysis of this dataset, par�cularly for the Mahalo North (ATP 2048) and Mahalo East (ATP 2061) permits.

Figure 4 - Comet Ridge's growing Mahalo Gas Hub Area

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