Under an agreement with Arrow Energy NL (Operator), Comet Ridge has the right to increase its existing interests in ATP 683P and ATP 689P in three separate phases.

Comet Ridge will earn an additional 6.67% (increasing from 30 to 36.67%) in the Dalby South Block of ATP 683P plus a further 10% in the Millmerran Block of ATP 683P and in all of ATP 689P (from 20 to 30% in both) under the first phase. By exercising all options the company can earn up to 50% in each of the blocks.

Comet Ridge has also agreed that the $1 million can be spent in the adjacent

Dalby Block (Comet Ridge 20%) to accelerate the development of the recently commissioned Tipton West Pilot project.

The intent of the initial phase of the pilot is to dewater the coals in order to reduce pressure and allow the gas adsorbed onto the coals to flow to surface. Due to the quality and gas content of the coals at Tipton West, gas flow was noted immediately.

This gas flow has gradually increased over the last two weeks as the pumps continue to draw down the water level and the well pumps are now running on produced gas.

The Tipton West Pilot consists of four producing wells and seven monitoring wells, which are at distances of 1 to 7 km away from the pilot producing wells. Pressure responses will be observed in these wells to assess reservoir continuity. Of the seven monitoring wells, four are completed and three are near completion.

All geological and production data is being prepared for reserves certification by mid-year.

Comet Ridge managing director Andy Lydyard said, “Our objective is the early commercialisation of our CSG projects. The Board’s decision to increase our interest in the Walloon Coal Measures project and further develop Tipton West demonstrates our confidence in achieving this objective.”