What did Comet Ridge (ASX:COI) announce regarding its Mahalo Gas Project acquisition?

Comet Ridge has renegotiated its agreement to buy a 42.86% stake in the Mahalo Gas Project from a Santos (ASX:STO) subsidiary. The revised deal reduces the upfront cash Comet Ridge needs to pay and extends the deadlines to finalise the transaction.

Why did Comet Ridge (ASX:COI) restructure its deal with Santos (ASX:STO)?

The restructure was driven by sub-optimal funding conditions caused by federal government announcements about an unreleased gas reservation policy. The changes give Comet Ridge extra time to gain clarity on the policy and secure a financing mechanism that preserves shareholder value.

What are the new financial terms for the Comet Ridge (ASX:COI) acquisition?

The upfront cash payment dropped to $18 million, down from the original structure. Comet Ridge will also issue $10 million in fully paid ordinary shares to Santos, subject to shareholder approval, alongside up to $30 million in contingent payments tied to specific gas sales milestones.

How do the contingent payments work for the Mahalo Gas Project deal?

The revised deal includes up to $30 million in performance-linked milestones. Comet Ridge will make these payments only after the project hits specific cumulative gas sales targets of 10 Petajoules (PJ), 20 PJ, and 30 PJ.

What are the key extension dates for the Comet Ridge (ASX:COI) transaction?

Comet Ridge now has until 14 August 2026 to arrange the necessary funding for the acquisition. The final deadline to meet all remaining conditions precedent, including shareholder approvals, has been pushed out to 30 September 2026.

What does this deal mean for the Comet Ridge (ASX:COI) long-term strategy?

Completing this acquisition will give Comet Ridge 100% ownership of the Mahalo Gas Hub by consolidating the main project with its Mahalo North and Mahalo East acreage. Management aims to use this total control to unlock commercial synergies and increase its total 2P (proved and probable) and 2C (contingent) gas resources.

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Comet Ridge renegotiates Mahalo Gas Project acquisition

Written by Heidi Cuthbert Published May 21, 2026, 5:32 AM

Comet Ridge (ASX:COI) has renegotiated the terms of its acquisition of a 42.86% interest in the Mahalo Gas Project from Santos (ASX:STO).

The revised agreement softens the upfront financial burden for Comet Ridge while extending key transaction timelines.

Under the amended structure, the initial cash consideration has been reduced to $18 million.

An additional $10 million will now be fulfilled via the issuance of fully paid ordinary shares to Santos, subject to shareholder approval.

The deal also incorporates up to $30 million in contingent payments, which are strictly tied to future gas sales milestones at intervals of 10 PJ, 20 PJ, and 30 PJ.

The deadline for arranging funding has been extended to Aug. 14, with the final satisfaction of all conditions precedent pushed out to Sept. 30.

Comet Ridge confirmed the restructure was necessitated by sub-optimal funding conditions triggered by recent federal government announcements regarding a proposed gas reservation policy.

The extended timeline is designed to give the company clarity on the unreleased policy while it secures a funding mechanism that maximises shareholder value.

Once finalised, the transaction will grant Comet Ridge 100% ownership of the Mahalo Gas Hub, consolidating the core project with Mahalo North and Mahalo East to boost total 2P and 2C resources.

Comet Ridge Managing Director Tor McCaul praised Santos’s collaborative approach, noting that while the project is a minor asset for a major producer, its development remains vital for Australia's energy market.

At the time of reporting, Comet Ridge’s share price was $0.13.