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Comet Ridge (ASX:COI) has brought its Mira Field CSG pilot well on-line, the second for the Mahalo joint venture and is a key component in the plan to book gas reserves across a large part of the Mahalo block.
Three of the four Mira pilot wells are on-line and pumping water, with the fourth and final well yet to start production.
The Central Queensland gas play has five equity participants alongside Brisbane-based Comet Ridge, which holds 35 per cent. Stanwell Corporation is a 5 per cent partner, while Australia Pacific LNG holds 30 per cent and Santos (ASX: STO) 30 per cent.
The COI share price has dropped 9.43 per cent this morning to $0.240 per unit. Santos is down less than one per cent at $12.68 per unit.
The Mira pilot scheme is expected to pump water progressively over the coming months before sustained gas flows are observed.
Lifting water from the coal seams reduces the pressure in the area around the wells and allows gas to flow to the wells, which can be measured for commercial potential.
The company says previous wells drilled in the area are highly productive, but the wells on pump have not exhibited the high productivity consistent with the previous well tests.
The company plans to book reserves at the Mahalo block later this year, with the final core hole in the program to be drilled in the third quarter.
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