• Comet Ridge to acquire Santos' 42.86% interest, taking ownership to 100%
• $40m firm consideration payable on completion, plus up to $20m in contingent payments
• Consolidates ownership of the entire Mahalo Gas Hub area, with Comet Ridge as Operator

Comet Ridge Limited (ASX: COI) is pleased to advise that it has entered into binding agreements to acquire Santos QNT Pty Ltd's 42.86% interest in the Mahalo Gas Project, taking Comet Ridge's interest from 57.14% to 100% on completion. This means upon completion, Comet Ridge will hold and operate the entire Mahalo Gas Hub area of approximately 1,850 km2. The total consideration for the acquisition is $40m firm payable on completion, scheduled to occur at Final Investment Decision (FID) for the Mahalo Gas Project, or 30 June 2026, whichever is sooner. An additional $20m in contingent payments linked to production milestones is also included. The acquisition will consolidate Comet Ridge's ownership of the entire Mahalo Gas Hub area, including the Mahalo Gas Project, Mahalo North and Mahalo East, and boost Comet Ridge's 2P Reserves and 2C Resources to 677 PJ. This will allow Comet Ridge to optimise the development of the whole Mahalo gas resource and ensure the project makes a significant contribution to the east coast domestic gas market. Comet Ridge is in advanced discussions to fund the acquisition and is confident it will be able to do so on terms that create value for its shareholders.

Comet Ridge's 2P Reserves and 2C Resources at the Mahalo Gas Hub will increase to 677 PJ on completion of the acquisition.

Comet Ridge plans to target domestic gas sales from the Mahalo Gas Project and integrate the Mahalo North and Mahalo East resources into the most capital efficient development.