Comet Ridge Ltd · ASX:COI
Comet Ridge — Merger or Acquisition (August 2021)
24 slides from Comet Ridge's merger presentation, Aug 3, 2021
Slide 1: Funded Acquisition of APLNG's 30% Mahalo Gas Project interest
Funded Acquisition of APLNG’s 30% Mahalo Gas Project interest 3 August 2021
Slide 2: Important notice and disclaimer
COMET RIDGE | A compelling east coast gas play Important notice and disclaimer Disclaimer Future performance This presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge This Presentation contains certain “forward-looking statements”. Forward looking wo
Slide 3: Agenda
COMET RIDGE | A compelling east coast gas play Agenda 1. Mahalo Acquisition Overview and Santos Arrangements 2. Mahalo Gas Project 3. Transaction Rationale 4. Key highlights Appendices: A. Terms of the APLNG Acquisition and Conditions B. Loan Facility - Pure Asset Management C. Competent Person Stat
Slide 4: Mahalo Acquisition Overview and Santos Arrangements
COMET RIDGE | A compelling east coast gas play Section 1 Mahalo Acquisition Overview and Santos Arrangements Page 4
Slide 5: Comet Ridge to acquire additional 30% of Mahalo for $20m
COMET RIDGE | A compelling east coast gas play Comet Ridge to acquire additional 30% of Mahalo Gas Project for $20m Strategic acquisition of an additional 30% equity interest in the Mahalo Gas Project from APLNG 1 with compelling transaction metrics on an EV/2P and EV/3P basis Strong transaction rat
Slide 6: Funded acquisition of APLNG's 30% interest
COMET RIDGE | A compelling east coast gas play Funded acquisition of APLNG’s 30% interest in Mahalo Gas Project Transformational acquisition built on compelling metrics and Mahalo JV alignment Comet Ridge has executed a binding agreement to acquire APLNG’s 30% interest in the Mahalo Gas Project On c
Slide 7: Santos arrangements
COMET RIDGE | A compelling east coast gas play Santos arrangements Upfront consideration funded via Santos loan Opportunity for Santos to equalise Mahalo interests Santos loan of up to $13.15m to fund upfront APLNG Arrangements provide for equity alignment in the Mahalo Gas consideration and stamp d
Slide 8: Mahalo Project
COMET RIDGE | A compelling east coast gas play Page 8 Mahalo Gas Project Section 2
Slide 9: Mahalo strong project fundamentals
COMET RIDGE | A compelling east coast gas play Mahalo Gas Project – strong project fundamentals ✓ Significantly appraised project • Over 20 appraisal wells • Including two pilot schemes with both vertical and lateral (horizontal) wells ✓ Proven flow rates • Mahalo 7 lateral pilot well flowed 426 Mcf
Slide 10: Mahalo development ready
COMET RIDGE | A compelling east coast gas play Mahalo Gas Project – development ready ✓ Low cost development • shallow coal depth • high productivity per well • low water production and no coal fines • sales spec gas (with minimal C02) ✓ Fully licenced • Development ready gas project • Petroleum Lea
Slide 11: Transaction rationale
COMET RIDGE | A compelling east coast gas play Page 11 Transaction rationale Section 3
Slide 12: Transaction Rationale
COMET RIDGE | A compelling east coast gas play Transaction Rationale 1 Material increase in Comet Ridge Reserves and Contingent Resources 2 Alignment of Comet Ridge and Santos as Mahalo joint venture partners 3 Unlocks entire Mahalo Gas Hub area – Common facilities, scale and cost efficiencies 4 Eas
Slide 13: Material increase in Comet Ridge Reserves and Contingent Resources
COMET RIDGE | A compelling east coast gas play Material increase in Comet Ridge Reserves and Contingent Resources Comet Ridge increase in reserves/resources due to: Material increase in COI share of Certified Reserves and Resources (PJ) for Mahalo Gas Project • stepping up from 40% equity to 70% equ
Slide 14: Alignment of Comet Ridge and Santos as Mahalo joint venture partners
COMET RIDGE | A compelling east coast gas play Alignment of Comet Ridge and Santos as Mahalo joint venture partners • Transaction creating a streamlined joint venture between Comet Ridge and Santos • Continuity of Mahalo operator – Santos previously operated exploration/appraisal and will continue a
Slide 15: Unlocks entire Mahalo Gas Hub area
COMET RIDGE | A compelling east coast gas play Unlocks entire Mahalo Gas Hub area • Streamlined Comet Ridge and Santos development, providing material equity interests across the entire Mahalo Gas Hub • Capital efficient development - processing all gas across the entire Mahalo Gas Hub area through
Slide 16: East Coast Gas Market – favourable dynamics for new gas supply
COMET RIDGE | A compelling east coast gas play East Coast Gas Market – favourable dynamics for new gas supply Southern gas production decline forecasts have worsened Gas prices have strengthened since July ‘20 lows Southern gas production (PJ/a) 500 400 300 200 100 0 2019 2020 2021 2022 2023 2024 20
Slide 17: Key highlights
COMET RIDGE | A compelling east coast gas play Page 17 Key highlights Section 4
Slide 18: Key highlights
COMET RIDGE | A compelling east coast gas play Key highlights 1 Comet Ridge to acquire APLNG’s 30% interest in Mahalo Gas Project, taking ownership to 70% JV partner Santos providing a loan package to fund the upfront consideration in exchange for an 2 option for increased equity in the Mahalo Gas P
Slide 19: Appendices
Appendices >» IS Comet Ridge
Slide 20: Appendix A - APLNG Acquisition terms
COMET RIDGE | A compelling east coast gas play Appendix A - APLNG Acquisition terms Assets being acquired • 30% interest in Mahalo Gas Project increasing Comet Ridge participating interest to 70% • Mahalo Gas Project comprises PL 1082, PL 1083, PCA 302, PCA 303 and PCA 304, • Mahalo JV area will be
Slide 21: Appendix A - APLNG Acquisition terms (continued)
COMET RIDGE | A compelling east coast gas play Appendix A - APLNG Acquisition terms (continued) Conditions • Qld Ministerial approval to transfer of title interests; • Comet Ridge, Santos and APLNG entering into transfer, co-ordination and restructure deeds; • Comet Ridge obtaining unconditional fun
Slide 22: Appendix B - Term Loan Facility with Pure Asset Management
COMET RIDGE | A compelling east coast gas play Appendix B – Term Loan Facility with Pure Asset Management Two tranche term loan, with detached $10m; comprising $6.5m for Tranche 1 and Facility structure Facility size warrants following each loan drawdown $3.5m for Tranche 2 12% p.a. prior to Mahalo
Slide 23: Appendix C - Competent Person Statement
COMET RIDGE | A compelling east coast gas play Appendix C – Competent Person Statement Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities The estimate of Reserves and Contingent Resources for the Mahalo Gas Project provided in this Presentation, is based
Slide 24: For more information
FOR MORE INFORMATION Telephone: +61 7 3221 3661 Email: info@cometridge.com.au Level 3, 410 Queen Street Brisbane Queensland 4000 cometridge.com.au