Comet Ridge Spuds Humboldt Creek 2 Well, Australia

March 18, 2013

Comet Ridge Limited announced the commencement of drilling operations at the Humboldt Creek 2 well, at its ATP 337P Mahalo asset in Queensland’s Bowen Basin.

Humboldt Creek 2 is the third step-out core hole to be drilled following the recent drilling of pilot production wells in the Mira field. Humboldt Creek 2 is located approximately 24 km south-southeast of the Mira field pilot wells and is approximately 245 km west of Gladstone in central Queensland. The well is expected to reach a total depth of approximately 500 metres.

Humboldt Creek 2 will be cored through the reservoir section and is being drilled to further define the key coal parameters in the southern part of the block.

A few high rainfall events were experienced in the Mahalo block area during February and March, and this had the impact of slowing or halting drilling operations for several consecutive days, and recently for up to a week, before the rig move to Humboldt Creek 2 could be completed.

Comet Ridge Managing Director, Tor McCaul, said that a total of about four weeks of drilling time had been lost due to weather, since the start of the current drilling programme in December. He added that he was pleased drilling operations had been able to re-start late last week.

Comet Ridge currently has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset to Stanwell Corporation Limited in an agreement announced in September 2011. Under the terms of that agreement, Stanwell Corporation Limited will fund Comet Ridge’s expenditure for the Mahalo field and Mira field pilot schemes. The agreement also gives Stanwell Corporation an option to purchase half or all of Comet Ridge’s equity in the Mahalo block, based on 2P reserves booked.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd 35%, Stanwell Corporation Limited 5% (with an option to increase), Australia Pacific LNG Pty Ltd 30% and Santos QNT Pty Ltd 30%.

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LNG World News Staff, March 18, 2013; Image: Comet Ridge