Comet Ridge has identified a strategic advantage in the Australian federal government’s proposed gas reservation scheme, arguing that the policy’s unintended consequences will benefit its $350 million Mahalo gas project.
Tor McCaul, the company’s chief executive, stated that the inefficient allocation mechanisms envisaged under the Labor government’s plan create market distortions that favor the Queensland-based junior’s development timeline and economics.
The company recently launched a $45 million capital raising to finance the acquisition of Santos’ 43 per cent interest in the project.
The commentary comes as Comet Ridge seeks to consolidate control over the Mahalo asset.
The company recently launched a $45 million capital raising to finance the acquisition of Santos’ 43 per cent interest in the project.
By securing full ownership, Comet Ridge aims to streamline decision-making and accelerate development, positioning the project to capitalize on the regulatory friction created by the reservation scheme.
The federal government’s draft policy aims to balance domestic affordability with supply security, but it has drawn sharp criticism from industry stakeholders.