COMET RIDGE LIMITED A.B.N. 47 106 092 577
Full Year Statutory Accounts for the year ended 30 June 20162016 Annual Reserves Statement 9
Corporate Governance Overview Statement 11
Auditor's Independence Declaration 22
Statement of Profit or Loss and Other Comprehensive Income 23
Statement of Financial Position 24
Statement of Changes in Equity 25
Notes to the Financial Statements 27
Independent Auditor's Report to the Members of Comet Ridge Limited 67
Overview of ActivitiesExploration and appraisal for gas resources and reserves in eastern Australia was the primary focus for Comet Ridge Limited during the year.
Comet Ridge has maintained its focus on the Mahalo block in ATP 1191 (ex ATP 337) which is operated by Santos QNT Pty Ltd. The Mahalo 7 horizontal well drilled in late 2014 and which intersects Mahalo 6 has performed exceptionally well from the relatively short lateral. In December 2015, the company announced an increase in 2P and 3P reserves based on the increasing flow rates recorded from the vertical-horizontal well combination.
In the Galilee Basin, in early August 2015, Comet Ridge announced (refer ASX Announcement 5 August 2015) that it had received an independent certification for Contingent Gas Resources at Albany, situated in the 100% held Galilee Basin permit ATP 744. The Certification follows an independent review of the conventional Albany Structure by the certifier SRK Consulting (Australasia) Pty Ltd ("SRK") of Brisbane, Australia.
Activities in Australia
Comet Ridge has interests in four permits in the Bowen and Galilee Basins in Queensland, and three in the Gunnedah Basin in New South Wales.
Comet Ridge Permits | Basin | State | CSG Interest | Area (km2) |
ATP 743 | Galilee | QLD | 100% | 3,195 |
ATP 744 | Galilee | QLD | 100% | 4,296 |
ATP 1015 Farm-in Area | Galilee | QLD | 20% | 873 |
ATP 1191 Mahalo | Bowen | QLD | 40% | 911 |
PEL 6 | Gunnedah | NSW | 29.55% | 5,162 |
PEL 427 | Gunnedah | NSW | 59.09% | 5,764 |
PEL 428 | Gunnedah | NSW | 68.42% | 6,018 |
The Mahalo Gas Project continues to be a primary focus for the company. Following a workover early in the year to replace a downhole pump, dewatering operations were restarted on the vertical-horizontal well combination with gas rates quickly increasing. The positive trending gas rate led to Comet Ridge receiving an increase in 2P and 3P reserves at Mahalo from MHA Petroleum Consultants of Denver, USA as announced in early December 2015.
In May, Comet Ridge entered into a non-binding Memorandum of Understanding (MOU) with APA Group (APA) to work towards the transportation of gas from Comet Ridge's Galilee Basin permits to east coast gas markets.
Comet Ridge Limited I Full Year Statutory Accounts 2016 1
Overview of Activities (continued)The company presents its net Gas Reserves and Resources for each of its tenements in the table below.
Comet Ridge Limited - Net Recoverable Reserves and Resources | |||||||||
Location | Project | COI Interest | Reserve (PJ) 1 | Contingent Resource (PJ) | Prospective Resource (PJ) 2 | ||||
1P3 | 2P | 3P | 1C | 2C | 3C | ||||
Bowen Basin, QLD | Mahalo Gas Project | 40% | - | 30 | 219 | 112 | 232 | 372 | - |
(ATP 1191) | |||||||||
Galilee Basin, QLD | Gunn Project Area5 | 100% | - | - | - | - | 67 | 1,870 | 5975 |
(ATP 744) | |||||||||
Galilee Basin, QLD | Albany Structure | 100% | - | - | - | 56 | 153 | 417 | - |
(ATP 744) | |||||||||
Gunnedah Basin, NSW | PEL 6 | 29.55% | - | - | - | - | - | 562 | 2,492 |
PEL 427 | 59.09% | ||||||||
PEL 428 | 68.42% | ||||||||
West Coast, NZ4 | PMP 50100 | 100% | - | - | - | 45 | 89 | 169 | - |
Total | - | 30 | 219 | 213 | 541 | 3,390 | 3,089 | ||
Notes to Table:
Note: Gas Reserve and Resource numbers have been rounded to the nearest whole number.
COI's net reserves have not been adjusted for fuel or shrinkage (estimated at approximately 3%) and have been calculated at the wellhead (which is the reference point for the purposes of Listing Rule 5.26.5).
ASX Listing Rule 5.28.2 Statement relating to Prospective Resources: The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
1P Reserves have not been attributed to the Mahalo Gas Project under SPE 2007 PRM Guidelines as the field is not yet at development stage with an approved development plan.
As detailed in the September 2015 Quarterly Activities Report, Comet Ridge has lodged an application to surrender PMP 50100. The contingent gas resource estimates for PMP 50100 provided were originally announced to the market on 26 September 2011.
Where the auditor has detailed Prospective Resources in a range, the mid-range case has been listed in the table.
The percentage interests recorded in the CSG Joint Ventures for the Gunnedah Basin permits listed include the percentage increase that has occurred as a result of Energy Australia's notice to withdraw from these Joint Ventures in December 2015. The transfers of these interests remain subject to regulatory approval formalisation under the Joint Venture agreements.
ATP 1191 Mahalo Project
Comet Ridge's ATP 1191 Mahalo asset is located in the Denison Trough, approximately 240km west of Gladstone in the southern Bowen Basin and covers an area of 911 km2. The Project is located just 11 kilometres from an infrastructure connection to the Gladstone LNG market with significant gas supply requirements. Comet Ridge has a 40% interest in Mahalo.
Comet Ridge Increases Independent Reserve Certification at Mahalo Gas Project
On 2 December 2015, the Company announced a material upgrade of its reserves at the Mahalo Block with a 2P Reserve increase of 36% and 3P Reserve increase of 77%. 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 were increased by converting part of the significant Contingent Resources in the block to the higher category of Reserves.
COI Net Equity Share Mahalo Block ATP 1191 | Gas Reserve (PJ) | Gas Contingent Resource (PJ) | ||||
Category | 1P | 2P | 3P | 1C | 2C | 3C |
2 December 2015 | - | 30 | 219 | 112 | 232 | 372 |
27 August 2014 | - | 22 | 124 | 208 | 328 | 468 |
Increase (PJ) | - | 8 | 95 | -96 | -96 | -96 |
Increase (%) | - | 36% | 77% | -46% | -29% | -21% |
Comet Ridge Limited I Full Year Statutory Accounts 2016 2
Comet Ridge Limited published this content on 30 September 2016 and is solely responsible for the information contained herein.
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