Comet Ridge: Increase in 2P & 3P reserves at Mahalo Gas Project

Comet Ridge Ltd has announced a material upgrade of Reserves for COI’s 40% equity interest in the Mahalo Gas Project (Mahalo) located in ATP 1191 (formerly ATP 337 – see Appendix 1). This latest reserves assessment has been independently certified by MHA Petroleum Consultants LLC (MHA) of Denver, Colorado.

The initial independent certification of Reserves at Mahalo was announced on 28 August 2014. As a result of the success of the Mahalo 7 horizontal well in providing significant gas flows, and also additional open source well data, both 2P and 3P Reserves have been increased by converting part of the significant Contingent Resources in the block to the higher category of Reserves.

The most significant part of this Reserves upgrade has been the conversion from the 1C Contingent Resource category, into the 3P Reserves category, however some conversion of 3P to 2P Reserves has also been achieved. Comet Ridge plans to continue conversion of 3P to 2P reserves over the coming months.

In accordance with the Society of Petroleum Engineers (SPE) 2007 Petroleum Resource Management System (PRMS) Guidelines as well as the 2011 Guidelines for Application of the PRMS approved by the SPE, MHA have updated the Reserves and Resources to COI’s net equity interest in Mahalo 1,2 using the deterministic method of petroleum reserves estimation.

Commenting on the announcement, Managing Director, Tor McCaul, said: “This upgrade in Reserves continues to reinforce our earlier comments on the commerciality and value of the Mahalo Gas Project. The success of the Mahalo 7 horizontal well in producing significant flow rates from a relatively short horizontal well section, with gas flow rates still increasing, signals that there is significant gas production potential from this area. With the project located just 11 km from an infrastructure connection to the Gladstone LNG market, the Mahalo Block is well positioned to capitalise on a very strained and rapidly expanding east coast gas market.”

He added: “We are pleased to have significantly increased the volume of 3P Reserves by 77% which we plan to further progress into the 2P category. In addition, we still have a very large Contingent Resource base to convert into Reserves for further value upside. The Company is highly confident that, based on the high deliverability shown at the Mahalo field to date and the continuous nature of the coals, that the Mahalo Block will quickly develop into a valuable resource for COI shareholders.”

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/02122015/increase-in-2p-3p-reserves-at-mahalo-gas-project-1726/