Comet Ridge has launched a $45 million capital raising to finance the acquisition of Santos’ 43 per cent interest in the Mahalo gas project.
The Queensland-based natural gas explorer, which carries a market capitalization of approximately $156 million, is moving to secure the asset through a placement round.
The transaction represents a significant strategic shift for the smaller explorer, allowing it to expand its portfolio by taking over a substantial stake from a major integrated producer.
Taylor Collison, Aitken Mount Capital Partners, and Morgans are acting as bookrunners for the placement, rounding up bids to ensure the capital raise meets its target.
This move underscores the ongoing trend of asset rotation within the Australian energy sector, where majors like Santos are divesting non-core or mature assets to focus on higher-growth opportunities, while smaller players seek to consolidate reserves.
The Mahalo project, located in Queensland, adds to Comet Ridge’s exposure to the domestic natural gas market, which remains critical for industrial demand and LNG feedstock supply.