Mahalo Project Spuds First Step-Out Core Hole

Scrubber Gully 2 is the first of four step-out core holes to be drilled following the recent drilling of pilot production wells in the Mira field.

Scrubber Gully 2 is located approximately three miles southeast of the Mira field pilot wells and is approximately 152 miles west of Gladstone in central Queensland. The well is expected to reach a total depth of approximately 1,640 feet.

Scrubber Gully 2, and three further step-out core holes, will be cored through the reservoir section to further extend the area available for booking reserves in the Mahalo block.

Comet Ridge currently has a 35 percent interest in ATP 337P Mahalo, having divested a five percent interest in the asset to Stanwell Corporation 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 and step-out drilling. 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%), Australia Pacific LNG Pty Ltd (30%) and Santos QNT (30%).

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