Comet Ridge
ANNUAL
REPORT
2024
Comet Ridge Limited
ABN: 47 106 092 577
Comet Ridge Limited | Annual Report 2024 1
CONTENTS
Overview of Activities
Chairman and Managing Director Letter to Shareholders
2024 Annual Reserves Statement
Corporate Governance Overview Statement
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Consolidated Entity Disclosure Statement
Directors’ Declaration
Independent Auditor’s Report
Additional Information
Corporate Directory
2
20
22
27
28
40
42
43
44
45
46
72
75
76
82
85
2 Comet Ridge Limited | Annual Report 2024
Overview of Activities
About
Comet Ridge Limited (ASX: COI) is a publicly listed
Australian energy company focused on the development of
natural gas for the supply-constrained east coast Australian
market. The Company has tenement interests and a suite of
prospective projects in Queensland.
The Company's flagship Mahalo Gas Hub area consists of
high-quality natural gas resources with low CO and
2
competitive production costs. The Mahalo Gas Hub is close
to the Gladstone LNG export and domestic market precinct
and the reserves are close to gas transport infrastructure.
Our exploration assets offer further upside amid increasing
domestic and international demand for natural gas as a
source for cleaner energy and as a key manufacturing
feedstock that makes thousands of products, used daily.
Comet Ridge plans to transition its Mahalo Gas Hub assets
into meaningful gas supply for Australia's east coast gas
market, with its 100% held Mahalo North Project, and the
larger Mahalo Gas Project, which is a joint venture with
Santos QNT Pty Ltd (the Operator).
Comet Ridge Limited | Annual Report 2024 3
Figure 1 – Comet Ridge's Mahalo Gas Hub permits
inland from Gladstone.
Injune
Rolleston
Springsure
Emerald
Gladstone
Roma
Wallumbilla
Biloela
Rockhampton
N
LEGEND
Authority to Prospect
Potential Commercial Area
Petroleum Lease - Comet Ridge/Santos
Gas Pipeline
Proposed Pipeline
Petroleum Lease
0
100km
50
B O W E N
B A S I N
PL 1083
PL 1082
Mahalo Far East
Mahalo Gas Project
Mahalo North
Mahalo East
Rolleston
Compressor
Station
PLA 1128
PLA 1132
Mahalo Far East Ext.
Queensland Permits
Petroleum Leases (2), Petroleum Lease
applications (2), Potential Commercial Areas (9),
additional Authorities to Prospect (3)
Southern Bowen Basin (CSG)
Galilee Basin (conventional and CSG)
2 x PLs awarded
2 x PL applications
2
6,592 km
580 PJ - 2P + 2C^
East coast domestic gas
(large supply shortfall is forecast)
Small producer exemption from gas price caps
Future Gas Strategy highlights role of gas to 2050
Basins
Queensland Acreage Area
Production Leases (PLs)
Reserves & Resources
Market Focus
Gas Regulation
^ 2P Gas Reserves and 2C Contingent Gas Resources have been independently certified (see Page 22).
4 Comet Ridge Limited | Annual Report 2024
Snapshot
Comet Ridge Limited | Annual Report 2024 5
Permits
Development
Activity
Funding
Corporate
Ÿ
Mahalo North 3P Reserves increased by 35% to 149 PJ.
Ÿ
Mahalo Far East Extension new block awarded to Comet
Ridge, extending its significant position in the Mahalo Gas
Hub area.
Ÿ
Mahalo North environmental approvals progressed during
the financial year, with Queensland Environmental Authority
awarded post-year end and Federal EPBC approval ongoing.
Ÿ
,
Mahalo Joint Venture partners Santos and Comet Ridge,
finalising select phase facilities design and capital cost
optimisation as a precursor to commencing upstream Front
End Engineering Design (FEED).
Ÿ
Mahalo Joint Venture pipeline planning with Jemena is
ongoing with a plan to commence Santos and Jemena FEED
studies concurrently.
Ÿ
$15.0 million placement completed to progress Mahalo Joint
Venture and Mahalo North natural gas projects to Final
Investment Decision (FID).
Ÿ
$5.0 million Queensland Government grant to be applied to a
lateral pilot well at Mahalo East being drilled and tested
during FY2025.
Ÿ
Underlying loss after tax of $7.17 million (2023: $6.57 million),
including $2.69 million of non-cash expenses.
Ÿ
Cash balance of $16.8 million at 30 June 2024.
Ÿ Gas Sales Agreement (GSA) with CleanCo Queensland Limited
executed on 18 September 2023 - Comet Ridge’s inaugural GSA
for supply into Australia’s domestic gas market.
Ÿ
Data room process experienced a high level of activity,
particularly during the June quarter, with multiple parties
engaged in ongoing technical and commercial due diligence
and structuring discussions.
FY2024 Highlights
6 Comet Ridge Limited | Annual Report 2024
Portfolio Overview
Comet Ridge has highly prospective, large footprint gas assets in two
Queensland basins with near-term developments in the Mahalo Gas
Hub area (see permit summary in Table 1).
State
CSG Interest
Conventional
Interest
2
Area (km )
Mahalo Gas Hub, southern Bowen Basin
Galilee Basin
Mahalo Joint Venture Project (PL 1082, PL 1083,
PCA 302, PCA 303, PCA 304)
2
Mahalo North (ATP 2048 - PLA 1128, PLA 1132)
Mahalo East (ATP 2061)
3
Mahalo Far East (ATP 2063)
ATP 743, PCA 319
ATP 744, PCA 320, 321, and 322
ATP 1015, PCA 323 and 324
QLD
QLD
QLD
QLD
QLD
QLD
QLD
57.14%
100%
100%
100%
100%
100%
100%
1
N/a
100%
100%
100%
70%
70%
70%
1 Comet Ridge has rights for gas down to the level of the lower Mantuan coals.
2 Until both PLs are awarded formally the original ATP 2048 remains in place
concurrent with both applications.
3 Following the end of the 2024 financial year, Comet Ridge was awarded ATP 2072 at
2
100% equity (covering an area of 66 km ), called Mahalo Far East Extension.
989
360
97
338
750
2,182
1,810
Comet Ridge Queensland Permits
Table 1 – Summary of Comet Ridge Queensland Permits at 30 June 2024
1. Mahalo Gas Hub, Bowen Basin, QLD
Mahalo Joint Venture Project – PL 1082, PL 1083, PCA
302, PCA 303, PCA 304
Overview - Comet Ridge's Mahalo Joint Venture Project is located
approximately 240 km west of Gladstone in the southern Bowen
2
Basin, covering an area of approximately 989 km. The project area is
approximately 80 km to the north of pipeline infrastructure
connecting to the east coast gas market (Figure 2). The initial focus for
development of the project will be in the two existing Petroleum
Leases PL 1082 and PL 1083 (Figures 2 and 3) awarded to the Mahalo
Joint Venture by the Queensland Government, and which have been
heavily appraised to date, with strong flow rates achieved and
reserves independently certified.
Comet Ridge Limited | Annual Report 2024 7
B O W E N
B A S I N
Rolleston
Springsure
Emerald
Gladstone
Biloela
Rockhampton
N
0
100km
50
PLA 1128
PL 1082
Mahalo Far East
Mahalo Gas Project
Mahalo North
Mahalo East
Rolleston Compressor Station
PLA 1132
PL 1083
Mahalo Far East Ext.
Gas Reserves and Resources - Comet Ridge's net 57.14% interest in Mahalo Joint
Venture Project Gas Reserves and Contingent Gas Resources at 30 June 2024 is shown in
Table 2 below.
Figure 2 – Regional location of the Mahalo Gas Hub area showing proximity to
pipeline infrastructure
Gas Reserves (PJ)
Mahalo Joint Venture Project
COI 57.14% interest
1P
0
Table 2 – Comet Ridge's share of Mahalo Joint Venture Project Gas Reserves and
Contingent Resources at 30 June 2024 (rounded to nearest whole number)
2P
3P
152
262
Contingent Gas Resources (PJ)
1C
109
2C
3C
180
294
Development activities – During the second half of FY2024 and up to the date of this
report, Comet Ridge has been working closely with the Operator to facilitate the
commencement of project FEED as a precursor to FID. This has involved completion of
the select phase of all upstream components of the project, including gas production
(phased drilling plan and gathering infrastructure for gas, water and power); facilities
selection (gas plant, compression and water handling facilities) and gas-field power
requirements. This work has involved considering various plant throughput options to
optimise capital expenditure and maximise project economics. The next step in the
select phase requires the Operator to undertake an assurance process on select phase
project deliverables followed by investment approval to commence FEED. The Operator
is developing contracting strategies and FEED scopes of work for critical infrastructure in
parallel to the assurance process to enable tendering to occur as soon as FEED
commences.
The Operator has also completed a range of pre-FEED activities on behalf of the Mahalo
Joint Venture including ecology surveys, stakeholder engagement meetings and the
award of a Pipeline Survey Licence. The Mahalo JV participants have continued to
engage with Jemena to undertake a gas transmission pipeline FEED study, which is
planned to commence concurrent with the upstream FEED activities.
LEGEND
Authority to Prospect
Potential Commercial Area
Petroleum Lease Application -
Comet Ridge
Gas Pipeline
Proposed Pipeline
Petroleum Lease
Petroleum Lease -
Comet Ridge/Santos
8 Comet Ridge Limited | Annual Report 2024
Gas
Pipeline
Rolleston Compressor Station
Jemena
GLNG
QGP
Pipeline
Santos
Proposed
Gas
Pipeline
Rolleston
Sirius Road 2
Sirius Road 1
Humboldt
Creek 2
Memooloo 2
Katrina 1
Lowesby 1
Struan 2
Mira 1
Humboldt 1
Scrubber
Gully 1
Scrubber Gully 2
Turkey’s Nest 1
Struan 3
Humboldt South 1
Mahalo 2
Mahalo 1
Somerby 1
Struan 1
Luton 2
Blackdown 2
Zerogen 4
Zerogen 3
Memooloo 1
Luton 1
Zerogen 2
Mahalo North 1
Mahalo North 2
Blackdown 3
PCA 302
PCA 303
PCA 304
PL 1082
2
234km
PL 1083
2
234km
ATP 2048
2
360km
ATP 2061
2
97km
ATP 2063
2
338km
Mahalo North
Mahalo Far East
Mahalo East
Comet Ridge
100%
Operator
Mahalo JV Project
Comet Ridge (57.14%)
Santos (42.86%) - Operator
N
PLA 1128
2
141km
PLA 1132
2
219km
Mahalo
Far East Ext.
2
66km
ATP 2072
Figure 3 – Map of Mahalo Joint Venture Project PL areas (PL 1082 and 1083) within the Mahalo Gas Hub and
location of CSG and some of the conventional wells drilled to date
Comet Ridge Limited | Annual Report 2024 9
Overview - These two PL development application areas cover
2
360 km and are highly prospective, given their location directly north
of, and contiguous with, the Mahalo Joint Venture Project. The initial
exploration block (ATP 2048) was awarded to Comet Ridge as 100%
equity holder by the Queensland Government on 29 April 2020,
following approval of an Environmental Authority for appraisal and
execution of a Native Title agreement over the block. Gas produced
from both PLs at Mahalo North will be subject to domestic supply
conditions. The non-prospective 20% of the ATP 2048 exploration
block was relinquished to the Queensland Government in the first half
2
of 2024, such that the remaining 360 km development area will fall
inside PLA 1128 and PLA 1132.
Appraisal and production testing - Comet Ridge completed an initial
drilling program at Mahalo North in late 2021, which comprised a
vertical well (Mahalo North 1 – cored and completed for production
testing) and a dual lateral well (Mahalo North 2) intersecting the
Mahalo North 1 vertical well.
Mahalo North 1 was production tested for a period of approximately
eight months with very positive results achieved. The Mahalo North 1
pilot well achieved a gas flow of 1.75 MMcfd (million standard cubic
feet per day), which is the highest recorded flow rate from a pilot well
in the Mahalo Gas Hub area to date. The pilot well test has provided
valuable technical information and, along with two earlier successful
Mahalo Joint Venture Project pilot wells at Mira 6 and Mahalo 7, has
again demonstrated the productive capacity of the Mahalo Gas Hub
over a wide area, this time inside Comet Ridge's 100% held Mahalo
North block.
Gas Reserves and Resources – Following the successful Mahalo North
production test, Comet Ridge certified initial 2P and 3P Gas Reserves
for Mahalo North in November 2022 and then an upgrade of 3P
Reserves in December 2023 as shown in Table 3 below. The 3P
Reserves upgrade was underpinned by five new geologic sectors
being added to the Mahalo North Project 3P areas as a result of
optimisation undertaken on project design during pre-FEED (front end
engineering design) studies and additional open file data becoming
available.
Mahalo North – ATP 2048 - PLA 1128 & PLA 1132
Gas Reserves (PJ)
Mahalo North
COI 100% interest
1P
12
Table 3 – Mahalo North Gas Reserves at 30 June 2024 (rounded to the
nearest whole number)
2P
3P
43
149
Contingent Gas Resources (PJ)
1C
-
2C
3C
-
-
There is additional gas-in-place further north in the Mahalo North
block which may lead to an expansion of certified Mahalo North 2P
Reserves in the future.
1
10 Comet Ridge Limited | Annual Report 2024
Queensland coal seam gas developments are required to undertake two separate,
highly detailed environmental assessments (with subsequent approvals) at both state
and federal levels prior to development. State approval requires an Environmental
Authority (EA) to be awarded by the Queensland Department of Environment,
Science and Innovation (DESI) and federal approval is required under the
Environment Protection and Biodiversity Conservation Act 1999 (EPBC).
Gas
Pipeline
Memooloo 2
Mahalo 2
Mahalo 1
Luton 2
Zerogen 4
Zerogen 3
Memooloo 1
Luton 1
Zerogen 2
Mahalo North 1
Mahalo North 2
10km
5
0
PL 1082
PL 1083
ATP 2048
2
360km
Mahalo North
N
PLA 1128
2
141km
PLA 1132
2
219km
Comet Tenement
CSG well
Pilot well
Gas Pipeline
LEGEND
Petroleum well
Figure 4 – Map of PLA 1128 (initial development area) and PLA 1132 within
Mahalo North (both part of the original ATP 2048)
Development approvals – Following the Gas Reserves certification, the Company's
focus during FY2024 has been finalising the necessary work to support a Petroleum
Lease (PL) application and environmental approvals for development activities to
commence. These applications were submitted in October 2023. Extensive
environmental work was undertaken by Comet Ridge and its consultants, EPIC
Environmental, comprising assessment of ecology, aquatic values, air quality, noise,
and ground and surface water to support the environmental approval applications.
The initial gas development area will be in the south of ATP 2048 where Comet Ridge
completed the Mahalo North 1 production test and where 1P and 2P Reserves are
located. A Petroleum Lease application (PLA 1128) was submitted by Comet Ridge in
October 2023 for the initial development area and is awaiting approval by the
Queensland Department of Resources after environmental approvals are secured. A
second Petroleum Lease application (PLA 1132) was submitted by Comet Ridge in
April 2024 and is in the early stages of assessment (see Figure 4 below).
Comet Ridge Limited | Annual Report 2024 11
The Queensland Government EA was awarded to Comet Ridge in August
2024, an important step towards the grant of Petroleum Lease 1128 (the
initial Mahalo North development area) by the Queensland Department
of Resources. The scope of this approval includes installation of new
production wells, compression and water treatment facilities, gas
gathering systems and access tracks. It is Comet Ridge's intention to
develop Mahalo North to meet its domestic gas supply agreement with
CleanCo Queensland Limited (CleanCo), a low-emission energy generator,
retailer and developer. CleanCo offers renewable energy from the sun
and wind, firmed with low emission generation to deliver competitive
clean energy products. The EA awarded to Comet Ridge contains
numerous industry-standard conditions that the Company is required to
meet to ensure the activities are undertaken without causing
environmental harm or contravening noise and emissions standards
while balancing the critical role that gas is anticipated to play as Australia
transitions towards Net Zero.
A referral was submitted in October 2023 to the Federal Department of
Climate Change, Energy, the Environment and Water (DCCEEW) under
the EPBC Act for the abovementioned initial development activities
within PLA 1128. The referral entered the public notification process in
February 2024, however DCCEEW extended the decision notice period. A
decision was then made by DCCEEW that the referral will proceed as a
controlled action and a very detailed preliminary request for further
information was provided to Comet Ridge. A non-controlled action
application by Comet Ridge was expected to be concluded in FY2024,
however the controlled action decision extends the assessment and
approval timeframe. Comet Ridge is preparing the response to DCCEEW
in relation to the detailed information request for further ecological field
work which was completed in September 2024. The response scope also
includes drilling new groundwater monitoring bores, which has also now
been completed by Comet Ridge. Monthly water monitoring information
will be provided as part of the EPBC approval process.
During the 2024 financial year, Comet Ridge executed a Conduct and
Compensation Agreement (CCA) with the landholder that occupies the
main Mahalo North development area within PLA 1128. This
development CCA covers the initial production wells, roads and tracks,
compression facilities (if required), water treatment and storage facilities
as well as a small site office and accommodation. The total land area
impact on this property is expected to be approximately 1% and the
relationship with the landholder remains very positive. Comet Ridge will
be able to supply valuable produced water for stock watering and
agricultural use.
12 Comet Ridge Limited | Annual Report 2024
FEED activities – The proposed development scope within PLA 1128 will consist of interconnected horizontal and vertical well
production pairs, gas and water gathering, a small gas compression facility, and water management infrastructure (see Figure 5).
Comet Ridge has advanced a significant amount of work on FEED activities for the Mahalo North development along with its
main development consultants Verbrec (compression facilities), Wasco (construction activities) and Veolia (water treatment).
Figure 5 – Conceptual layout of facilities planned for Mahalo North
Gas produced from ATP 2048 is subject to an Australian market supply condition and requires a transmission pipeline to
connect the PL area to existing pipeline infrastructure to supply gas to the Australian Domestic Gas Market.
Multiple options are currently being progressed, including connection to PPL 10 (Denison pipeline) to the west, PPL 30
(Jemena's Queensland Gas Pipeline (QGP)) to the south and utilising shared infrastructure to be constructed as part of the
Mahalo Joint Venture Project.
Comet Ridge engaged Jemena to complete a pre-FEED study on a Jemena built, owned and operated pipeline connection
from Mahalo North to the QGP. This work was completed in FY2023. The next stage is to undertake pipeline FEED, and this is
now planned to be undertaken by the Mahalo Joint Venture participants, with Comet Ridge potentially connecting Mahalo
North to this pipeline.
Mahalo East – ATP 2061
2
Overview - This 97 km block is also highly prospective given its location directly north-east of, and contiguous with, the
Mahalo Joint Venture Project. The block was awarded to Comet Ridge as 100% equity holder by the Queensland Government
on 28 September 2020, after a competitive tender process. Gas produced from Mahalo East is also subject to domestic supply
conditions.
Subsurface analysis - Mahalo East is part of the Mahalo Gas Hub Area and sits over a natural northeast geologic extension of
the gas accumulation in the Bandanna Formation coals. It has similar geologic characteristics to the Mahalo Joint Venture
Project, with the discovery of gas and the geologic model confirmed by seismic data and coal exploration bore wireline logs,
core and gas desorption data.
Gas Reserves and Resources – Based on analysis of the
extensive data contained in the Company's geological model,
Comet Ridge independently certified Contingent Gas Resources
for Mahalo East in December 2022 as shown in Table 4 below.
Gas Reserves
(PJ)
Mahalo East
COI 100% interest
1P
-
2P
3P
-
-
Contingent Gas
Resources (PJ)
1C
8
2C
3C
31
122
Table 4 – Mahalo East Contingent Gas Resources at 30 June 2024
(rounded to the nearest whole number)
Appraisal activities – Comet Ridge was awarded a $5 million grant
from the Queensland Government in May 2024 to undertake a
pilot production test in the Mahalo East block (ATP 2061). The
Queensland Government has made a total of $21 million available
to four separate operators under the Frontier Gas Exploration
Program to support exploration in the Bowen Basin.
As noted above, Mahalo East currently has independently
certified 2C (31 PJ) and 3C (122 PJ) Contingent Resources and the
pilot test is the next step in positioning the project for
development.
Comet Ridge will use the $5 million grant to drill and test a new
pilot scheme, comprising a vertical production well intersecting a
lateral (horizontal) well. The new pilot (with the well location
shown in red in Figure 6) will be installed similarly to Comet
Ridge's successful Mahalo North pilot, with a trial of enhanced
steering technology to improve lateral well length and design.
This technology can then be applied more widely across the
Mahalo Gas Hub and the Bowen Basin.
Comet Ridge has finalised the planning steps necessary to
undertake drilling operations, including negotiating and executing
a Conduct and Compensation Agreement with the landholder,
and selecting a preferred drilling contractor for the operations.
Comet Ridge plans to commence drilling early in the December
2024 quarter, subject to weather and final rig availability, followed
by testing.
Comet Ridge Limited | Annual Report 2024 13
14 Comet Ridge Limited | Annual Report 2024
Figure 6 – Map showing the pilot production well within ATP 2061
(Mahalo East), within the Mahalo Hub high-quality fairway
Mahalo Far East – ATP 2063
2
Overview – This very large 338 km block was awarded to Comet Ridge on a
100% equity basis on 10 May 2021. Mahalo Far East contains coals that are
generally deeper and have notably higher natural gas content than the main
Mahalo high productivity fairway, adding significant additional gas-in-place
volume to Comet Ridge's portfolio in the Mahalo Gas Hub area. This block also
contains conventional (sandstone) gas potential underneath the coals, for
which Comet Ridge also holds 100% equity.
Comet Ridge has also identified a large CSG opportunity on the eastern flank of
the permit, known as the Blackdown play, which is deeper than the high-quality
CSG fairway within the main Mahalo Gas Hub area. The Blackdown play has
elevated coal maturity and higher gas content which is likely to require longer
lateral wells for commerciality but could ultimately produce excellent gas
volumes.
New permit awarded - Subsequent to the end of the 2024 financial year, Comet
Ridge was awarded a new block in the Mahalo Gas Hub area, being ATP 2072,
2
called Mahalo Far East Extension. ATP 2072 covers an area of 66 km and is
located immediately north of Mahalo East and west of Mahalo Far East (see the
green shaded area in Figure 3 on page 8), approximately 85 km south-east of
Emerald. The southern portion of the new block sits over the Mahalo Gas Hub
high-quality fairway and is expected to be a source of future production wells
for the Mahalo Gas Hub development.
2. Galilee Basin Permits
2
Comet Ridge holds a large acreage position of 4,742 km in the eastern part of the Galilee Basin. This
acreage contains substantial 3C Contingent Resources, shown in Table 5 below, which have been
independently certified at two stratigraphic levels. These comprise the sandstones or “Deeps” (from
a depth of approximately 2,500 metres) in the Albany structure and also CSG or “Shallows” in the
Gunn Project Area (from a depth down to approximately 1,000 metres).
CSG, Gunn Project Area (COI 100%)
Contingent Gas Resources (PJ)
0
67
1,870
Table 5 – Comet Ridge's share of Galilee Basin Contingent Gas Resources at 30 June 2024
(rounded to nearest whole number)
Conventional, Albany Structure (COI 70%)
39
107
292
Galilee Basin Permits (COI net interests)
1C
2C
3C
Total
39
174
2,162
In 2019, Comet Ridge and Vintage Energy created
the Galilee Deeps Joint Venture (GDJV), with
Vintage Energy earning a 30% interest by funding
the Albany 1 well and additional 2D seismic
aimed at the deeper sandstone reservoir sections.
The Albany 1 well flowed 230,000 standard cubic
feet of gas per day and confirmed these deeper
sandstones could indeed be productive. The GDJV
participants have identified up to 20 sandstone
leads and prospects in this deeper section of the
basin for future appraisal.
PCAs numbered 319 to 324 (Figure 7) have been
awarded to Comet Ridge for a term of 15 years
ending 9 September 2037. All three of the
underlying permits, ATPs 743, 744 and 1015, have
also been renewed for a further term of 12 years,
ending 3 September 2033, 31 October 2033 and
30 November 2034 respectively.
Comet Ridge continues to work through the next
phase of appraisal with Vintage Energy and is
focused on several studies to extend technical
knowledge on charge (source & migration),
reservoir, seal and trap.
N
G A L I L E E
B A S I N
100km
ATP 1015
Hughenden
Longreach
Barcaldine
Charters Towers
Aramac
ATP 744
ATP 743
PCA 320
(Albany)
PCA 319 (Koburra)
(Schmitt East)
PCA 324 (Ophir)
(Schmitt)
PCA 322 (Gunn)
PCA 321
PCA 323
Comet Ridge Limited | Annual Report 2024 15
Figure 7 – Galilee permits showing the PCAs within the three ATPs
3. New South Wales Permits
Comet Ridge has one remaining NSW exploration licence (PEL 427),
which was renewed by the NSW Government on 12 May 2022 for a
period of six years. The approved area was reduced to 12 blocks by
2
the NSW Government over an area of 891 km located in the
northern Gunnedah Basin, immediately north of Santos' Narrabri
CSG Project in the Bohena Trough.
Comet Ridge holds a 59.1% CSG equity interest and 100%
conventional equity interest in PEL 427. Comet Ridge is the
Conventional Operator whilst Santos operates the CSG interest.
Given the uncertainty and significant risk related to investment in
natural gas in NSW, the Company is planning to be 100% focused
on its Queensland operations for the foreseeable future.
16 Comet Ridge Limited | Annual Report 2024
Other Activities
International Activities
Just after the end of the reporting period, New Zealand
Petroleum and Minerals (the NZ Government petroleum
authority) accepted the surrender of the Comet Ridge interest
in PMP 50100 in New Zealand. The Company now has no
permit interest in New Zealand.
In 2019, Comet Ridge undertook a program to plug and
abandon (make permanently safe) all the wells in its New
Zealand acreage as part of the process to surrender PMP
50100, with the exception of one well (Murcott 1) that was
delayed due to land access and then COVID. This well has
subsequently been plugged and made safe and all required
operations in that exploration block have been concluded.
Health, Safety and Environment
The majority of field operations in the 2024 financial year were
in the Mahalo North block and focussed on very high quality
aquatic and terrestrial environmental surveys and field activity
in support of the PLA 1128 application. As a result, fewer field
hours were worked in FY2024 compared to FY2023.
The total operational hours worked in FY2024 across the
business was 21,562 hours down from 23,495 hours last year.
Consistent with previous years, there were no safety or
environmental incidents recorded during the 2024 financial
year.
Mahalo North field operations were supported by a rigorous
risk management approach used in planning for the
operations. This included the Company's Risk Committee
systematically identifying the strategic and operational level
risks associated with the field work. These risks and
appropriate mitigations were incorporated into the field work
undertaken at Mahalo North in 2024.
The primary focus of the business moving forward is to ensure
that the next phase of activity is conducted in accordance with
the HSE management system and that operations comply with
all the many regulatory requirements and approvals. As we
move into an increased level of activity at Mahalo East, the
rigorous risk management approach used during our last
appraisal activity in Mahalo North will be applied.
Comet Ridge Limited | Annual Report 2024 17
Community
Comet Ridge takes its corporate social responsibility very seriously. This is reflected in a deep commitment, at all levels of the
Company, to working with community stakeholders in the regions where it operates. This commitment has ensured external
and stakeholder relationships continue to be extremely positive.
Throughout FY2024 Comet Ridge has:
Ÿ Maintained its financial membership of the Leucaena Network, to allow knowledge gathering and networking in
anticipation of future gas field development;
Ÿ Attended and contributed to a number of government and industry organised workshops;
Ÿ Sponsored local community events in Rolleston, Queensland and supported other local fundraising activities; and
Ÿ Recently met with the new Mayor and CEO of Central Highlands Regional Council after the 2024 Council elections.
Community engagement and respect for the communities where the Company operates is a core value for Comet Ridge and is
supported by legislation and regulation. The Queensland 'Land Access Code', which has been developed in compliance with
the relevant legislation and is enshrined in regulation, is the industry reference when it comes to landholder and community
relations and interaction between landholders and the gas industry. Comet Ridge has always acted consistently with the
principles and guidelines set out in this Code of Practice.
Comet Ridge believes that co-existence and mutual respect are the cornerstones of community relations. The Company has
built on the strong relationships developed over previous years and continues to enjoy excellent relationships with
landholders, local government, the wider community, and all relevant stakeholders.
In terms of local government engagement, the Company continues to maintain contact with relevant officials and elected
representatives in the local government areas where Comet Ridge operates. Contact with local government affords an
excellent opportunity to communicate with local communities at a broad level, allowing Comet Ridge to listen to local
residents' and businesses' aspirations and align them with the Company's plans. The Company uses and supports local
contractors and businesses in its operations as a priority.
Through membership of Australian Energy Producers (AEP), the Company interacts with government representatives (at
multiple levels) and directly with other key agencies such as Coexistence Queensland which has grown out of the Queensland
Gas Fields Commission. Comet Ridge maintains strong relationships with the relevant Queensland Government departments,
including the Department of Resources and the Department of Environment, Science and Innovation.
Cultural Heritage
Comet Ridge values its relationships with Traditional Owners and respects their heritage and culture. We always act to protect
and secure Indigenous Cultural Heritage when conducting in-field activities by working with the local Cultural Heritage
claimant group and briefing that group prior to any field activities. We also engage around the conduct of field surveys prior to
any field work, and ensure we comply with all relevant legislation. Protecting, preserving and respecting Indigenous culture,
Indigenous peoples' deep connection to the land and ensuring artefacts and areas of cultural significance are secured are all
extremely important to Comet Ridge. The Company has a number of Native Title agreements in place.
Sustainability
As part of Australia's community of oil and gas operators we acknowledge the important role that the industry will play in the
energy mix in the future. Comet Ridge recognises that, in delivering this essential component of the prosperity and wellbeing
of all Australians, it is incumbent upon us to minimise the impact of our activities and remediate areas affected by operations
to ensure that the environment we touch or are connected to experiences the lowest possible impact.
Natural gas will provide long-term energy and manufacturing security for Queensland and Australia, which is fundamental for
our society's wellbeing. The approach to environmental, social and governance (ESG) issues across the natural gas industry is
an evolving, critical component of a company's social licence to operate. Companies with a strong ESG program and
performance benefit significantly and directly when it comes to stakeholder engagement and investor participation. Comet
Ridge is actively engaging, independently and through AEP, to develop its own ESG program. The environmental aspects of our
18 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited | Annual Report 2024 19
operations are governed by strict laws and regulations both at state and
federal levels which are integrated into our operational procedures,
including the assessment of potential environmental impacts of any
proposed activities before the commencement of any project. Comet Ridge
also engages with relevant stakeholders such as landholders, native title
claimants and local governments to minimise its impact.
We also understand that the world must use its resources wisely and that
society is transitioning to produce fewer greenhouse emissions. Apart from
domestic uses such as cooking and heating, gas is an essential part of
industries as diverse as pharmaceuticals and the manufacture of fertilisers,
which are not currently able to be met by renewable energy sources.
Natural gas plays a key role in housing, for example making glass, bricks,
aluminium and plasterboard. Natural gas also has an important role to play
in providing firming power for this transition, as it burns much more cleanly
than other fossil fuels, can start electricity generation at short notice and
with fewer associated emissions.
Natural gas is used as a critical input to the manufacture of many thousands
of products that we use every day to make our lives better. Natural gas is a
key input for ammonia-based fertilisers which are very important in
maximising crop yields to help feed the planet's growing population.
Synthetic fibres like nylons are hydrocarbon (natural gas and oil) based and
so many of us wear the products of natural gas around with us every day.
Plastics in our cars, houses, phones, keyboards and computers are also
products made from natural gas. It takes natural gas to build the many
components needed for a solar panel or a wind factory. Natural gas is used
extensively to refine ore to generate many of the metals needed for
renewables components. Indeed, it is hard to contemplate a world without
the many products that natural gas provides, and Australian manufacturing
would effectively shut down without it.
Our goal is to operate efficiently and responsibly, with the support of our
stakeholders. We want our communities, employees and shareholders to all
enjoy the benefits of Comet Ridge developing Queensland's natural gas
resources.
Environment, Social and Governance (ESG) Reporting
As reported in last year's Annual Report, and in response to the increased
focus on the principles of Environment, Social and Governance (ESG) as an
effective means of creating long term value while addressing societal
priorities, the Company committed to adopting an ESG reporting regime.
This is based on the one enshrined in the United Nations' Sustainable
Development Goals determining that the reporting on the ESG disclosures
of the Stakeholder Capitalism Metrics (SCM) of the World Economic Forum
(WEF) (
) strikes the
https://www.weforum.org/stakeholdercapitalism
necessary balance between the detail needed for Shareholders seeking a
level of transparency, and a reporting structure that will not impose
unreasonable or unnecessary burden on a Company with limited internal
resources, the size and stage of development which Comet Ridge is
currently at.
The Company has made significant progress in finalising a sustainability
report which will contain the ESG disclosures referencing ESG metrics
focused on people, planet, prosperity and principles of governance that
organisations are able to report on regardless of industry or region. Once
finalised and adopted, this will see the Company reporting against the 21
core SCMs, which will then be reviewed quarterly and updated periodically.
20 Comet Ridge Limited | Annual Report 2024
Chairman and
Managing Director
letter to shareholders
Dear Fellow Shareholder,
We are pleased to present to you our Annual Report for
the 2024 financial year, as we continue on the path of
transitioning from an appraisal company, through project
development and ultimately into gas production.
In FY2024 we took an important step in our transition to gas producer
with the execution of our inaugural Gas Sales agreement (GSA) with
CleanCo Queensland Limited (CleanCo). This followed very shortly
after the resolution of exemptions for small producers from the
Federal Government's mandated gas price caps, which we highlighted
in the 2023 Annual Report. Comet Ridge has had a long and positive
relationship with CleanCo and its predecessor Stanwell Corporation.
CleanCo is a low-emission energy generator, retailer and developer
that offers renewable energy from the sun and wind, firmed with low
emission generation to deliver competitive clean energy products. The
GSA satisfied a number of conditions precedent during the 2024
financial year and is awaiting our final investment decision on Mahalo
North to become fully unconditional.
Our letter to shareholders in 2023 addressed the Federal
Government's intervention in the gas market with a regulated gas
price cap, as noted above, which resulted in an industry-wide
investment freeze and delays in the development of new supply. This
was softened several months later with an exemption framework
which was then followed by the Federal Government with its Future
Gas Strategy in May 2024. The strategy identifies a number of
required actions including preventing gas shortfalls by working with
industry and State and Territory governments to encourage more
timely development of existing gas discoveries. Whilst the strategy
was positively received by the natural gas industry, it seems to lack a
policy framework to enable many of the identified actions, including,
for example, the streamlining of time and associated costs of securing
environmental approvals.
The Company is advancing its 100% held Mahalo North Gas Project,
which has a domestic gas supply obligation, to meet the supply
requirements of the CleanCo GSA. Mahalo North is planned to be
developed in conjunction with the Mahalo Joint Venture Project with
the Mahalo Joint Venture's Development Operator, Santos QNT Pty
Ltd. The reservoir geology at Mahalo North has been confirmed from
our very successful pilot production test in 2022, followed by
independent certification of 43 PJ of 2P Reserves and 110 PJ of 3P
Reserves. These 2P Reserves are more than sufficient to cover the
supply requirements of the CleanCo contract. 3P Reserves for Mahalo
North were then further upgraded in December 2023 to 149 PJ based
on development optimisation work and receipt of further open file
geological data.
Comet Ridge Limited | Annual Report 2024 21
During the 2024 financial year, we progressed regulatory approval requirements for Mahalo North, including an
initial Petroleum Lease application (PLA 1128), underpinned by extensive environmental surveys, studies and
reports that are required for both State and Federal environmental approvals. Both applications were submitted
in October 2023. After a lengthy period of public consultation, response to information requests and interaction
with assessing authorities, it is pleasing to report that in August 2024, Comet Ridge was awarded an
Environmental Authority (EA) by the Queensland Department of Environment, Science and Innovation for the
planned development activities within PLA 1128. This EA is a precursor for the award of the Petroleum Lease,
which will formally allow moving forward into production with an agreed development plan.
Despite receiving Queensland Government EA approval, our efforts to secure EPBC approval from the Federal
Government are ongoing. At the date of this letter, we are finalising our response to a very detailed preliminary
information request including the requirement for additional field activities to drill and monitor new
groundwater bores. Our detailed response is scheduled to be submitted in October and although we remain very
confident in receiving EPBC approval, there is currently an inconsistency between the Future Gas Strategy
imperatives noted above and the time and bureaucratic processes required to secure these.
The other critically important piece of work that has been our focus during the 2024 financial year is progressing
the Mahalo Joint Venture Project into Front End Engineering Design (FEED). This project has the necessary scale
(with 266 PJ gross 2P Reserves and 458 PJ gross 3P Reserves) to support the development of new gas
compression facilities and a circa 80 km pipeline connection to both the Queensland Gas Pipeline (domestic) and
GLNG Pipeline (LNG export). Mahalo North may also be able to leverage these facilities and the pipeline
connection to minimise overall project capital expenditure. Santos, as the Operator, and Comet Ridge have
finalised the select stage project deliverables and optimisation of plant capacity and capital expenditure, as a
precursor to moving into FEED in the December quarter. The Mahalo JV participants have continued to engage
with Jemena to undertake the gas transmission pipeline FEED study which is planned to commence concurrent
with the upstream FEED activities.
The Future Gas Strategy highlights the importance of natural gas to our economy and society. Gas is crucial for A
Future Made in Australia as it supports manufacturing, food growing and processing and the refining of critical
minerals which will help Australia and the world to lower emissions. Gas supplies 27% of Australia's energy needs
and represents 14% of Australia's export income. Gas will play an important role in firming renewable power
generation and is needed in hard-to-abate sectors like manufacturing and minerals processing until such time as
alternatives are viable and can be deployed.
This gas demand is evident from our ongoing discussions with gas users. These discussions have confirmed that
gas users are motivated to support new sources of supply into the east coast market and that pre-pay funding is
available to small producers to assist with project capital requirements. This is particularly important as
traditional sources of funding are becoming increasingly constrained due to pressure from climate activists on
lenders and investors. As we make further progress with FEED activities in FY2025, we will be able to finalise
further gas supply agreements with potential customers.
During the year we were also very pleased to receive strong support from the Queensland Government with the
award of a $5m grant for the drilling of a Mahalo East pilot scheme, and also the award of a new block, Mahalo
East Extension (ATP 2072). We expect drilling of this new pilot scheme to commence in October.
We remain very positive about the future of our Company. We have proven assets in the right location, along
with some exciting growth opportunities that we can integrate into our Mahalo Gas Hub development. Our
quality gas assets in the Mahalo Gas Hub will ultimately produce significant volumes of gas for Australia's energy
and manufacturing sectors. We have a great development partner in Jemena for the pipeline connection to
market, an experienced joint venture partner in Santos, and a quality foundation customer in CleanCo along with
other prospective customers in an ever-tightening gas market.
We are very appreciative of the support from our shareholders, and we look forward to creating value for you as
we move forward.
James McKay
Chairman
Tor McCaul
Managing Director
22 Comet Ridge Limited | Annual Report 2024
Table 6 – Comet Ridge Limited – Reserves and Resources Annual Statement
2024 Annual Reserves Statement
Comet Ridge is pleased to present its Annual Reserves Statement in Table 6 below for the year ending 30 June 2024.
1 Movements in Net Recoverable Reserves and Resources are explained in responses to Listing Rule 5.39.3 and 5.40.2 below.
+ Subsequent to the booking of the Reserves and Resources for ATP 1191, the Authority to Prospect and the area that it covered has been converted on
application to PL 1082 and PL 1083 along with PCAs 302, 303, and 304.
2 Comet Ridge announced on 20 December 2023 an upgrade of its estimate of 3P Gas Reserves for the Mahalo North Project. The 3P Reserves upgrade was
certified by Sproule Incorporated of Denver Colorado USA.
3 1P Gas Reserves for the Mahalo North Project have been included in this Reserves certification on the basis that a development decision by Comet Ridge
(as 100% owner and operator of the project) is planned as soon as transport arrangements and PL application are concluded. Similarly, with the
streamlined Comet Ridge and Santos Mahalo Joint Venture now focused on development plans for the Mahalo Joint Venture Project to the south, the re-
instatement of 1P Reserves for Comet Ridge's net interest in the Mahalo Joint Venture Project will be reviewed and actioned as development plans are
finalised with Santos.
ASX Listing Rules Annual Report Requirements
* Listing Rule 5.39.1:
Ÿ All 2P Petroleum Reserves recorded in Table 6 at 30 June 2024 are undeveloped and are attributable to unconventional
gas.
Ÿ 100% of the 2P Petroleum Reserves are located in the southern Bowen Basin.
Ÿ No 1P Petroleum Reserves were recorded for the period ending 30 June 2024 for the Mahalo Joint Venture Project.
Please refer to ASX Announcement “Mahalo Reserves and Resources Revision” 30 October 2019 for details of the reason
from the removal of the 1P Petroleum Reserves.
* Listing Rule 5.39.2:
Ÿ The proportion of 1P and 2P Petroleum Reserves that are unconventional is 100%. The 1P and 2P Reserves recorded for
the Company are located in the Company's southern Bowen Basin Mahalo Joint Venture Project area (PL 1082 and PL
1083 along with PCAs 302, 303, and 304) and its Mahalo North project area (ATP 2048) also in the southern Bowen Basin.
Listing Rule 5.39.3:
Ÿ Table 6 records a comparison of the 2P and 3P Petroleum Reserves at 30 June 2024 as against the previous year and
discloses that the Petroleum Reserves (3P) have changed as a result of the 3P Reserves upgrade for the Mahalo North
Project (ATP 2048) announced 20 December 2023.
COI
Interest
Basin
Project/Permit
Southern Bowen
Basin, QLD
Southern Bowen
Basin, QLD
Southern Bowen
Basin, QLD
Galilee Basin,
QLD
Galilee Basin,
QLD
Gunnedah Basin,
NSW
Total
Mahalo JV
3
(ATP 1191)
Mahalo East
(ATP 2061)
Mahalo North
(ATP 2048)
Gunn
(ATP 744)
Albany
(ATP 744)
PEL 427
57.14%
100%
100%
100%
70%
59.09%
*-
3
*12
-
-
-
-
*12
*-
3
*12
-
-
-
-
*12
*152
*43
-
-
-
-
*195
262
110
-
-
-
-
372
262
2
149
-
-
-
-
2
411
*152
*43
-
-
-
-
*195
**180
-
31
**67
**107
-
**385
109
-
8
-
39
-
156
109
-
8
-
39
-
156
**180
-
31
**67
**107
-
**385
294
-
122
1,870
292
281
2,859
294
-
122
1,870
292
281
2,859
1P
1P
2P
*2P
3P
3P
1C
1C
**2C **2C
3C
3C
30-6-23
30-6-23
30-6-23
30-6-23
30-6-23
30-6-24
30-6-24
30-6-24
30-6-24
30-6-24
30-6-24
1
Reserves (PJ)
1
Contingent Resources (PJ)
1
Comet Ridge Limited – Net Recoverable Reserves and Resources
30-6-23
Comet Ridge Limited | Annual Report 2024 23
Listing Rule 5.39.4:
Ÿ Comet Ridge first reported certified Petroleum Reserves for the
Mahalo Joint Venture Project on 27 August 2014 and these Reserves
have remained undeveloped for greater than 5 years since the date
initially reported.
Ÿ The Mahalo Joint Venture has yet to reach a Final Investment Decision
(FID) on the Mahalo Joint Venture Project, which needs the approval
of both Joint Venture participants. Lateral well drilling was undertaken
by Comet Ridge, as agent for the Exploration Operator (Santos), during
2017 and 2018, to demonstrate and confirm the most likely
development well style. During the first half of 2020, both Federal and
State environmental approvals were received for the Mahalo Joint
Venture Project and then on 30 June 2020 the Petroleum Leases (PLs)
were awarded by the Queensland Government.
Ÿ On 28 June 2022 Comet Ridge completed the acquisition of APLNG's
30% interest in the Mahalo Joint Venture to provide a pathway to
project development with a streamlined joint venture comprising
Comet Ridge and Santos with material equity positions and Santos
continuing as Operator.
Ÿ Subsequent to the acquisition of the APLNG interest by Comet Ridge,
Santos provided a notice to exercise its option to acquire a 12.86%
option interest. This acquisition was finalised on 28 September 2022
upon which Comet Ridge's net interest in the Mahalo Joint Venture
was adjusted to 57.14%.
Ÿ Concurrent with this holding in the Mahalo Joint Venture, Comet
Ridge now holds a large 100% operated acreage position immediately
adjacent to the Mahalo Joint Venture Project to the northwest and
northeast and has, since the award of these permits, certified
additional gas Reserves and Resources in these areas. Comet Ridge
plans to make use of common infrastructure that will be available to
the Mahalo Joint Venture Project following final investment decision,
as well as Comet Ridge's 100% held projects.
Ÿ Following an appraisal program Comet Ridge announced (ASX:COI 2
November 2022) the initial independent certification of 1P, 2P & 3P
Reserves for its 100% held Mahalo North (ATP 2048) tenure, which has
subsequently been updated with an upgrade in the 3P Reserves
announced 20 December 2023. Additionally, the independent
certification of 1C, 2C, & 3C Resources in Comet Ridge's 100% held
Mahalo East (ATP 2061) tenure was announced in December 2022
(ASX:COI 19 Dec 2022).
Governance Arrangements and Internal Controls Listing Rule 5.39.5:
Ÿ Comet Ridge has obtained all of its gas Reserves and Resources
estimates reported at 30 June 2024 from external independent
consultants who are qualified petroleum Reserves and Resources
evaluators as prescribed by the ASX Listing Rules.
Ÿ Comet Ridge estimates and reports its petroleum Reserves and
Resources for its southern Bowen Basin tenures in accordance with
the definitions and guidelines of the Petroleum Resources
Management System 2018 and Guidelines for Application of PRMS
2011 as published by the Society of Petroleum Engineers (SPE PRMS).
In respect to the Galilee Basin (Gunn Project Area) and Gunnedah
24 Comet Ridge Limited | Annual Report 2024
Basin Resources estimates, these were made in accordance with the
definitions and guidelines of the Petroleum Resources Management
System 2007, published by the Society of Petroleum Engineers (SPE
PRMS). In respect to the Galilee Basin (Albany Structure) Resources
estimates, these were made in accordance with definitions and
guidelines of the Petroleum Resources Management System 2007 and
Guidelines for Application of PRMS 2011 as published by the Society of
Petroleum Engineers (SPE PRMS).
Ÿ To ensure the integrity and reliability of data used in the Reserves
estimation process, the raw data is reviewed by senior reservoir
engineering and geological staff at Comet Ridge before being provided
to the independent reserve certifiers. Comet Ridge has not and does
not currently intend to conduct internal certification of petroleum
Reserves preferring to appoint independent external experts prior to
reporting any updated estimates of Reserves or Resources so as to
ensure an independent and rigorous review of its data.
Ÿ Comet Ridge reviews and updates its gas Reserves and Resources
position on a regular basis to ensure that if there is any new data that
might affect the Reserves or Resources estimates of the Company,
steps can be taken to ensure that the estimates are adjusted
accordingly.
**Listing Rule 5.40.1:
Ÿ All 2C Contingent Resources at 30 June 2024 are undeveloped.
Approximately 72% of the reported 2C Contingent Resource is
attributable to unconventional gas with the remainder attributable to a
sandstone reservoir referred to in Table 6 as the Albany Structure.
Ÿ The geographical areas where the 2C Contingent Resources appear in
the far-left column of Table 6.
Listing Rule 5.40.2:
Ÿ Table 6 records a comparison of the 1C, 2C and 3C Contingent
Resources at 30 June 2024 against the previous year and discloses that
no changes have occurred in the current financial year.
Listing Rule 5.44:
Ÿ The estimates of Reserves and Contingent Resources appearing in the
2024 Annual Reserves Statement for Comet Ridge Limited and its
subsidiaries are based on, and fairly represent, information and
supporting documentation determined by the various qualified
petroleum reserves and resource evaluators listed below.
Ÿ The estimate of the unconventional (CSG) Contingent Resources for the
Gunn Project Area in ATP 744 were determined by Mr John Hattner, a
full-time employee of Netherland, Sewell, and Associates Inc. (NSAI),
an independent petroleum reserve and resource evaluation company.
Mr Hattner is a qualified petroleum reserves and resource evaluator as
defined under the ASX Listing Rule 5.42. and is a member of the
Society of Petroleum Engineers. Mr Hattner has previously consented
to the publication of the Contingent Resources estimate for the Gunn
Project Area in the form and context in which they appear in this
Annual Reserves Statement for 2024.
Comet Ridge Limited | Annual Report 2024 25
Ÿ The estimate of Contingent Resources for the Albany Structure in ATP
744 is taken from an independent report by Dr Bruce McConachie, an
Associate Principal Consultant with SRK Consulting (Australasia) Pty
Ltd, an independent petroleum reserve and resource evaluation
company. Mr McConachie is a qualified petroleum reserves and
resource evaluator as defined under the ASX Listing Rule 5.42 and is a
member of the American Association of Petroleum Geologists, the
Society of Petroleum Engineers and Australasian Institute of Mining
and Metallurgy. Mr McConachie has previously consented to the
publication of the Contingent Resources figures for the Albany
Structure in ATP 744 in the form and context in which they appear in
this Annual Reserves Statement for 2024.
Ÿ The estimate of the Reserves and Contingent Resources for the Mahalo
Joint Venture, as part of ATP 1191+ (PL 1082 and PL 1083 along with
PCAs 302, 303, and 304) was determined by and under the supervision
of Mr Timothy L. Hower MHA Petroleum Consultants LLC (now part of
the Sproule Group). Mr Hower is a full-time employee of Sproule and is
a qualified petroleum reserves and resource evaluator as defined
under the ASX Listing Rule 5.42. Mr Hower is a Licensed Professional
Engineer in the state of Colorado, USA as well as being a member of
The Society of Petroleum Engineers. Mr Hower has previously
consented to the publication of the Reserve and Contingent Resource
estimates for the Mahalo Joint Venture in the form and context in
which they appear in this Annual Reserves Statement for 2024.
Ÿ The estimate of the unconventional (CSG) Contingent Resources for
PEL 427 were also determined by Mr Timothy L. Hower of Sproule. Mr
Hower consented to the publication of the resource figures which
appeared in the announcement of 7 March 2011 made by Eastern Star
Gas Limited (ASX:ESG). Any reference and reliance on the Resource
figures for PEL 427 as they appear in this Annual Reserves Statement is
only a restatement of the information contained in the ASX:ESG
announcement.
Ÿ The estimate of the unconventional (CSG) Reserves for the Mahalo
North area (ATP 2048) were also determined Mr Timothy L. Hower of
Sproule. Mr Hower has previously consented to the publication of
Reserve figures in the form and context in which they appear in this
Annual Reserves Statement for 2024.
Ÿ The estimate of the unconventional (CSG) Contingent Resources for the
Mahalo East area (ATP 2061) were also determined Mr Timothy L.
Hower of Sproule. Mr Hower has previously consented to the
publication of Reserve figures in the form and context in which they
appear in this Annual Reserves Statement for 2024.
Notes to Net Recoverable Reserves and Resources Table:
1) Gas Reserve and Resource numbers have been rounded to the nearest whole number.
2) Comet Ridge's net Reserves have not been adjusted for fuel or shrinkage (estimated at
approximately 3%) and have been calculated at the wellhead (which is the reference
point for the purposes of Listing Rule 5.26.5).
Gas is crucial for A
Future Made in
Australia as it supports
manufacturing, food
growing and processing
and refining of critical
minerals which will
help Australia and the
world to lower
emissions.
26 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited | Annual Report 2024 27
Corporate Governance Overview Statement
The Directors and management of Comet Ridge are committed to the creation
of shareholder value and recognise the need for high standards of corporate
governance as integral to that objective.
The Board is pleased to report that during the year ending 30 June 2024 the
Company's corporate governance practices and policies have substantially
accorded with those outlined in the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations (4th Edition) (ASX
Recommendations or ASX Guidelines), except as outlined in the Company's
annual Corporate Governance Statement. Even where there is a deviation from
the recommendations the Company continues to review and update its policies
and practices in order that these keep abreast of the growth of the Company,
the broadening of its activities, current legislation and good practice.
The ASX Corporate Governance Council's (the Council) recommendations are
not prescriptive but rather they are guidelines. If certain recommendations are
not appropriate for the Company given its circumstances, it may elect not to
adopt that particular practice in limited circumstances.
Where the Company's Corporate Governance practices do not correlate with the
practices recommended by the Council, the Company does not consider that the
recommended practices are appropriate due to either the size of the Board or
the management team or due to the current activities and operations being
carried on by and within the Company.
A copy of Comet Ridge's 2024 Corporate Governance Statement, which provides
detailed information about governance and a copy of Comet Ridge's Appendix
4G which sets outs the Company's compliance with the ASX Recommendations,
is available on the corporate governance section of the Company's website at:
http://www.cometridge.com.au/corporate-governance/.
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Directors’ Report
Your Directors present their report on Comet Ridge Limited (Comet Ridge or the Company) and the consolidated entity (the Group) for the
financial year ended 30 June 2024. The Company was incorporated on 23 August 2003 and listed on the Australian Securities Exchange on
19 April 2004.
1.
Information on Directors
The following persons were the Directors of Comet Ridge Limited who held office for the whole or part of the year and up to the date of
this Report.
James McKay B.Com, LLB, Non-executive Chairman (Director since 16 April 2009)
Special Responsibilities
Chairman
Member of the Remuneration Committee
Experience
James McKay is Executive Chairman and co-founder of Walcot Capital, a venture capital business specialising in early stage commodity
investments. Walcot Capital has established a number of large and successful resource projects including Tlou Energy Limited, an ASX and
AIM listed southern Africa focused coal seam gas company, and ERPM a South African based gold company that purchased the historic East
Rand Proprietary Mine with a 51M oz reserve.
James is the former Chairman of successful coal seam gas company Sunshine Gas Limited, having overseen that company’s growth to join
the ranks of Australia’s Top 150 and a top ten Queensland company with a market capitalisation over $1 billion, prior to its merger with
Queensland Gas Company.
Mr McKay is also a director and shareholder of Centenary Memorial Gardens Pty Ltd, a major Brisbane cemetery and crematorium. He is a
past president of the Australasian Cemeteries and Crematoria Association, having served on its board for over eight years.
James McKay has a strong commercial background, with sound finance, investment markets, business management and legal expertise. He
holds degrees in commerce and law.
Interest in Shares and Options
38,076,275 ordinary shares
Directorships Held in Other Listed Entities in Last 3 Years
Nil.
Tor McCaul B.E (Hons/Petroleum), B.Econ, MBA, Managing Director (Director since 16 April 2009)
Special Responsibilities
Managing Director
Member of the Risk Committee
Experience
Tor McCaul was appointed Managing Director of Comet Ridge in April 2009 when the Company merged with Chartwell Energy Limited
(Chartwell). He previously held the position of Chief Executive Officer of Chartwell having commenced with that company in 2008. Tor has
over 30 years’ experience in the oil and gas industry. He graduated in Petroleum Engineering from UNSW in 1987 and spent the next nine
years based in Brisbane working with operating companies in technical roles on projects in Queensland, New Zealand and PNG, which
included a secondment to Chevron Niugini.
He spent the following 11 years in Asia (Karachi, Jakarta, Chennai and Delhi) in technical, finance, commercial and management roles. At
VICO Indonesia (a BP-ENI JV) he was their LNG Contract Manager on the 23 million-tonne-per-annum Bontang LNG project. In India, he was
Cairn plc’s Head of Commercial for the Indian business. Mr McCaul is currently a Director of the Australian Energy Producers (AEP) and has
previously been the Chairman for the Queensland Section of the Society of Petroleum Engineers and was the 2013 Queensland Petroleum
Exploration Association (QUPEX) President.
Interest in Shares and Options
10,102,333 ordinary shares
1,000,000 performance rights
Directorships Held in Other Listed Entities in Last 3 Years
Nil.
28 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Chris Pieters B.Sc (Hons), B.Bus, Executive Director (Director since 16 April 2009)
Appointed Executive Director 17 June 2015.
Special Responsibilities
Nil
Experience
Chris Pieters is the Managing Director and co-founder of Walcot Capital, a private venture capital business specialising in early-stage
commodity investments, and the former Managing Director of Tlou Energy Limited, when it was a private unlisted public company with
CSG exploration interests in Southern Africa.
Previously he was Chief Commercial Officer at Sunshine Gas Limited prior to its merger with the Queensland Gas Company in 2008. Mr
Pieters also held other technical and business development roles at Sunshine Gas.
He is a member of the Petroleum Exploration Society of Australia.
Interest in Shares and Options
1,576,178 ordinary shares
Directorships Held in Other Listed Entities in Last 3 Years
Nil.
Gillian Swaby B.Bus, FAICD, FCIS, MAusIMM, Non-executive Director (Director since 9 January 2004)
Special Responsibilities
Chairperson of the Audit Committee
Experience
Gillian Swaby has been involved in financial and corporate administration for listed companies for over 30 years, as both Director and
Company Secretary covering a broad range of industry sectors. Ms Swaby has extensive experience in the area of corporate governance,
corporate and financial management and board practice.
Gillian is a past Chair of the Western Australian Council of Chartered Secretaries of Australia and State Councillor of the Australian Institute
of Company Directors. She also serves on the board of ASX listed Deep Yellow Limited.
Interest in Shares and Options
295,372 ordinary shares
Directorships Held in Other Listed Entities in Last 3 Years
Deep Yellow Limited, joined 10 October 2005
Panoramic Resources Ltd, joined 8 October 2019, resigned 27 March 2024
Martin Riley B.E (Hons 1/Chem), Non-executive Director (Director since 13 March 2019)
Special Responsibilities
Chairperson of the Risk Committee
Member of the Remuneration Committee
Member of the Audit Committee
Experience
Martin Riley holds a first-class honours degree from Sydney University in Chemical Engineering and has 35 years’ experience in the upstream
oil and gas industry in a variety of roles. Martin was influential in the commercial inception and development of the Coal Seam Gas (CSG)
industry in Queensland in the 1990s with Origin Energy. Martin has held a number of sub-surface technical roles, and senior executive
positions within the industry, across both CSG and conventional assets, through exploration, development and production.
Interest in Shares and Options
850,895 ordinary shares
Directorships Held in Other Listed Entities in Last 3 Years
Nil.
Comet Ridge Limited | Annual Report 2024 29
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Shaun Scott B.A (Rec Admin), B.Bus (Accountancy), ACA, Non-executive Director (Director since 16 October 2019)
Special Responsibilities
Chairperson of the Remuneration Committee
Member of the Audit Committee
Experience
Shaun Scott is an experienced independent non-executive director on both public and private boards. As an executive, Mr Scott was CEO
of Arrow Energy Limited and was instrumental in taking this business from a $20 million coal seam gas explorer to a significant gas and
energy producer and leader in the development of the Queensland LNG industry, until Arrow’s $3.5 billion acquisition by Shell and Petro-
China in 2010. At the Board level, Shaun has operated as Chairman and non-executive director of a number of publicly listed companies
and chaired numerous Board sub-committees. Mr Scott has specific expertise and experience in business strategy, negotiations, financial
and risk management, executive remuneration, governance and safety leadership.
He is a member of the Chartered Accountants Australia and New Zealand.
Interest in Shares and Options
1,038,074 ordinary shares
Directorships Held in Other Listed Entities in Last 3 Years
Noble Helium Limited (Executive Chairman), joined 25 January 2022, resigned 7 March 2024
Noble Helium Limited (Managing Director), appointed 7 March 2024
2.
Company Secretary
Stephen Rodgers was appointed Company Secretary on 16 April 2009 and continues in office at the date of this report. He is a lawyer with
over 30 years’ experience and holds a Bachelor of Laws degree from Queensland University of Technology.
After practising law with several firms in Brisbane over a 12-year period he then operated his own specialist commercial and property law
practice for seven years. Mr Rodgers then joined the successful team at Sunshine Gas Limited, where he was the in-house Legal and
Commercial Counsel; a broad role which also included assisting the Company Secretary with many of the facets of that position. During this
period, Mr Rodgers gained invaluable experience in the operation and running of an ASX200 coal seam gas company as well as being an
instrumental member of the team which led the takeover negotiations and implementation of QGC’s friendly acquisition of that Company.
He also holds the position of Company Secretary of Blue Energy Limited, an ASX listed CSG exploration company operating in Australia, as
well as ASX listed HSC Technology Group Ltd, a medical technology company. Mr Rodgers brings to Comet Ridge strong legal and commercial
experience with a particular emphasis on the coal seam gas industry.
3.
Principal Activities
The principal activities of the Group during the financial year were to carry out oil and gas exploration, appraisal and development activities.
The Group has tenement interests and a number of prospective projects in eastern Australia.
There have been no significant changes in the nature of the Group’s principal activities during the financial year.
4.
Operating and Financial Review
The comprehensive loss after tax of the Group for the financial year ended 30 June 2024 amounted to $7,189,000 (2023: loss of $6,569,000),
including non-cash items of $2,690,000 (2023: $2,638,000).
During the financial year, the Group capitalised exploration expenditure of $1,814,000 (2023: derecognised $8,513,000 due to the
divestment of a 12.86% interest to Santos) on the Mahalo Joint Venture Project, $2,559,000 (2023: $2,969,000) on Mahalo North, $228,000
(2023: $514,000) combined on Mahalo East and Far East and $81,000 (2023: $502,000) on the Galilee Deeps Joint Venture.
At 30 June 2024, the Group had $16,776,000 in cash on hand and net current liabilities of $17,945,000 (which includes the CleanCo financial
liability, PURE warrant financial liability and APLNG deferred consideration payable disclosed as current obligations).
Comet Ridge has future commitments for the Mahalo Joint Venture Project, 100% held Mahalo northern projects and Galilee Basin
permits which will be funded from existing cash and other funding sources as required when they fall due.
The Company executed a GSA with CleanCo on 18 September 2023 which contains a number of conditions prior to commencement of gas
delivery under the GSA. If these conditions are not satisfied in the future, a cash payment would arise, which is not presently funded. Note 2
(d) Going Concern, and the independent auditor’s report both acknowledge the existence of these matters and the material uncertainty
that exists as a consequence. If Comet Ridge was not able to secure funding to meet this payment (if it was required to do so), that may
cast significant doubt about the Group’s ability to continue as a going concern.
30 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Comet Ridge is actively pursuing a number of potential funding transactions to progress the appraisal and development of the Company’s
projects including project sell-down, farm-out and gas prepay arrangements. The Board is confident of being able to source funding at the
necessary time.
Further information on the operations of the Group and likely developments are set out in the Overview of Activities and Significant Affairs
outlined below.
5.
Significant Affairs
There have been no significant changes in the state of affairs of the Group during the financial year ended 30 June 2024.
6.
Dividends Paid or Recommended
The Directors recommend that no dividend be paid or declared. No amounts have been paid or declared by way of dividend during the
financial year.
7.
Post Balance Date Events
(a)
ATP 2072 awarded by Queensland Government
Comet Ridge announced on 22 July 2024 that ATP 2072 was awarded to Comet ridge as 100% owner and operator for an initial term of six
years. This new block is called Mahalo Far East Extension and covers an area of 66 km2 immediately north of the Mahalo East and west of
the Mahalo Far East projects. The southern portion of ATP 2072 sits over the Mahalo Gas Hub high-quality fairway and is expected to be a
source of future production wells for the Mahalo Gas Hub development plan.
(b)
Environmental Authority for PLA 1128 awarded by Queensland Government
Comet Ridge announced on 6 August 2024 that it was awarded an Environmental Authority (EA) from the Queensland Department of
Environment, Science and Innovation for development activities to be carried out within PLA 1128 (the planned initial development area
of Mahalo North). The scope of the development under the EA includes new production wells, compression and water treatment facilities,
gathering systems and access tracks. Comet Ridge is developing Mahalo North to meet its domestic gas supply agreement with CleanCo
Queensland Limited, a low-emission energy generator, retailer and developer which offers renewable energy from the sun and wind, firmed
with low emission generation to deliver competitive clean energy products.
8.
Principal Risks
Risk Management Framework
Comet Ridge has an established dedicated Risk Committee to provide advice and assistance to the Board in developing policy and assessing
risks of the business. The Comet Ridge risk management procedure is based on the Australian Standard AS/NZS ISO 31000:2018 as having
prominence in guiding the facilitation and management of risk within the Company. Comet Ridge recognises that effective risk management
is a fundamental consideration in the decision-making process within the Company. The process of identifying, assessing and managing
material business risks is designed to manage risks, mitigate risks to an acceptable level and, where appropriate, accept risk to generate
returns. The Comet Ridge risk management framework is reviewed annually, in which an analytical review is undertaken of all the
Company’s operational, corporate, legal, regulatory and financial risk exposures.
The Comet Ridge risk management procedure incorporates an enterprise level view of risk, an understanding of risk management options
and the use of consistently developed risk information. This is a continuous process and provides the foundation for the execution of
business management activities. The use of common language around risk identification, management and reporting across field and office-
based teams enables management, the employees and contractors who work for the company to focus on the key risks to achieve
organisational goals.
The Comet Ridge risk management procedure defines oversight responsibilities for the Board to enable effective risk identification,
assessment and management across the business.
Material Risks at 30 June 2024
The material business risks for Comet Ridge at 30 June 2024 are outlined in this section. These risks may materialise independently,
concurrently or in combination. The active management of these risks through our risk management framework is imperative to Comet
Ridge meeting strategic objectives and delivering shareholder value. This summary is neither an exhaustive list of risks that may affect
Comet Ridge, nor are the risks listed in order of importance.
Comet Ridge Limited | Annual Report 2024 31
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Operational Risks
Risk
Joint Venture arrangements – Comet Ridge is in several joint ventures for some of the assets it owns and, as such, is
dependent on technical and commercial alignment with our Joint Venture partners.
Cause
Misalignment between Joint Venture partners can lead to inefficient utilisation of available capital and may impact
approaches to prioritisation of exploration or development opportunities.
Impact
Delayed approvals of development plans may impact on the timing of Comet Ridge’s growth.
Mitigations
We ensure that our team works closely with our Joint Venture partners to achieve mutually beneficial outcomes.
Risk
Exploration and development – Our growth is dependent on our ability to successfully discover, develop and deliver
new resources and reserves.
Cause
Exploration and drilling activities are highly uncertain and dependent on capital funding and the acquisition and
analysis of data.
Impact
Comet Ridge’s ability to deliver our strategy may be impacted by the success of our exploration and development
efforts.
Mitigations
To ensure the highest possibility of success and therefore confidence of investors, we seek to employ the most
technically capable staff, who analyse our existing acreage for drilling prospects by applying best-in-class
technologies and process for exploration and development. Comet Ridge seeks partnering and farm-in opportunities
to diversify risk.
Risk
Access to infrastructure – Comet Ridge’s growth strategy is largely dependent on access to infrastructure owned by
third parties.
Cause
We rely on third parties to process, transport and market the product Comet Ridge is seeking to produce.
Impact
Comet Ridge’s growth may be impacted by the failure to obtain access to appropriate supporting facilities.
Mitigations
We seek to work closely with suppliers of infrastructure to mitigate the risk of not obtaining access and we continue
to explore alternative routes to market to diversify risk where possible.
Risk
Renewal of Tenure – All permits and tenure are subject to compliance with certain requirements, including but not
limited to meeting minimum exploration work commitments, lodgement of reports, payment of fees and compliance
with environmental conditions and legislation.
Cause
We rely on a number of external factors as well as internal to ensure that we are able to satisfy these conditions
which might not be able to be met on time or at all due to various factors some of which may be out of the control
of the Company.
Impact
Comet Ridge could lose title to or its interest in any of the permits or tenure to any of its assets if these requirements
are not met.
Mitigation
We have a very experienced team who are familiar with the regulatory environment and continue to monitor the
Company’s progress as against work commitments and reporting obligations. These commitments are continually
reviewed throughout the year not only by the operations team level but also are overseen by the Risk Committee
who reports directly to the Board who has the authority to secure further resources and funding to ensure
commitments are not missed.
Risk
Land Access – Land access is critical for the success of Comet Ridge’s exploration and development activities.
Cause
We rely on being able to negotiate with landholders and other stakeholders’ access and entry agreements onto
private and public lands over which Comet Ridge’s exploration and production tenures overlay.
Impact
Comet Ridge’s future exploration operations and profitability may be adversely impacted or delayed in the event of
a dispute with a landholder or user that delays or prevents the Company carrying out its projects and this could
materially adversely affect its financial position and performance.
Mitigations
We seek to work closely with landholders and other stakeholders and engage with them as early as possible to ensure
that they are kept appraised of our proposed activities and seek to develop working partnerships with these parties
where possible.
32 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Strategic Financial Risks
Risk
Access to Funding – Comet Ridge’s ability to fund operations and future growth.
Cause
Volatility or uncertainty in capital markets could restrict the willingness of investors to provide additional capital,
such as has been experienced with the advent of the COVID-19 pandemic.
Impact
Comet Ridge’s growth aspirations require the investment of significant capital to generate returns.
Mitigations
We have prudent expenditure management and forecasting with a Board approved budget. We actively seek
partnering opportunities to help fund key activities on a project by project basis.
Safety, Environmental and Sustainability Risks
Risk
Climate Change – Management of carbon emissions and increased regulatory obligations may lead to increasing
regulation and costs. Policies related to Climate Change and the energy transition that Australia is presently
undergoing may adversely affect demand for natural gas, its pricing and gas industry investment.
Cause
There continues to be focus from governments, regulators, and investors in relation to how companies are managing
the impacts of climate change policy and expectations.
Impact
Comet Ridge’s growth and operating costs may be impacted by increasing regulation and financial imposts associated
with climate change, compliance with increased regulatory obligations and the management of carbon emissions.
Mitigation
Comet Ridge actively monitors current and emerging areas of climate change risk and opportunities to ensure
appropriate action can be taken. Comet Ridge continuously focuses on improving its energy efficiency and emissions
management in delivering cost efficiencies and will adopt when required industry best practice to minimise the
impact of the risk.
Risk
Health and safety – There is a risk of harm to employees, contractors and communities near our operations,
particularly in remote locations, from exploration activities.
Cause
Our activities are subject to operating hazards which could result in harm to our people or our communities.
Impact
In addition to injury or negative effects to the health or wellbeing of affected people, impacts may include
reputational damage and fines.
Mitigations
The identification, effective control and overall management of health and safety risks are the highest priority for
Comet Ridge. We have developed detailed health and safety management plans, as well as rigorous processes to
ensure we operate at the highest standards of safety management.
Risk
Cyber Security – Comet Ridge’s operations are and will continue to be reliant on various computer systems, data
storage facilities and interfaces with networks and other systems.
Cause
Every business, regardless of its size, is a potential target of cyber-attack. That is because every business has key
assets (financial or otherwise) that bad actors may seek to exploit. The occurrences of cyber-attacks have increased
exponentially in recent times.
Impact
Failures or breaches of these systems (including by way of virus and hacking attacks) have the potential to materially
and or negatively impact the Company’s operations and reputation. Examples of these would include the theft or
loss of data and publication of materially sensitive information.
Mitigations
The Company has put in place barriers, continuity plans and risk management systems, however there are inherent
limits to such plans and systems. Further, Comet Ridge has no control over the cyber security plans and systems of
third parties which may interface with our operations, or upon whose services the Company’s operations are reliant.
Political Risks
Risk
Significant regulatory change – A change in government or policy and / or unexpected changes to legislation and
regulation may significantly impact Comet Ridge financially and operationally.
Cause
Changes in legislation, regulations and / or policy can result from changes in Government or from changes by
Government or external pressures.
Impact
Changes in legislation, regulation and / or policy may impact on exploration and development of our product. In turn,
such changes would impact on sustainable returns for investors, through profit erosion and loss of company value.
Retrospective or unexpected regulatory changes potentially impact the longer-term viability of projects.
Mitigations
We actively monitor regulatory and political developments and constructively engage with government, regulators
and industry bodies.
Comet Ridge Limited | Annual Report 2024 33
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
9.
Future Developments and Expected Results
The Group proposes to continue its exploration, appraisal and development programs and investment activities.
Further information on the operations of the Group and likely future developments is set out in the Overview of Activities.
10. Environmental Regulations
The Group’s operations are subject to environmental regulation under the federal and state laws of Australia, where it undertakes its
exploration and development activities. It is the Group’s policy to engage appropriately experienced contractors and consultants to advise
on, and ensure compliance with, its environmental performance obligations.
There have been no reports of breaches of any environmental regulations or obligations in the financial year and as at the date of this
report.
11. Auditor’s Independence Declaration
The auditor’s independence declaration for the year ended 30 June 2024 has been received and is attached to this report as required under
section 307c of the Corporations Act 2001.
12. Meetings of Directors
The number of meetings of the Company’s Board of Directors and of each Board committee held during the financial year ended 30 June
2024 and the number of meetings attended by each Director were:
Board
Audit
Remuneration
Committee
Risk
Committee
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
J McKay
7
7
*
*
1
1
*
*
T McCaul
7
7
*
*
*
*
4
4
G Swaby
7
7
3
3
*
*
*
*
C Pieters
7
7
*
*
*
*
*
*
S Scott
7
7
3
3
1
1
*
*
M Riley
7
7
3
3
1
1
4
4
* Not a member of the relevant committee
13. Remuneration Report – Audited
This report outlines the remuneration arrangements in place for the Non-executive Directors, Executive Directors and other Key
Management Personnel of the Company.
Remuneration Committee
The Board has established a Remuneration Committee which provides advice and specific recommendations on the remuneration packages
and other terms of employment for Non-executive Directors, Executive Directors and other senior executives, including:
•
the level of Non-executive Director fees;
•
the amount and nature of remuneration arrangements for Executive Directors and other executives; and
•
the type and nature of incentive arrangements including key performance targets effecting the remuneration of the executive team.
The objective of the Remuneration Committee is to ensure that the remuneration policies and arrangements are fair and competitive and
aligned with the long-term interest of the Company.
The level of remuneration and other terms and conditions of employment for Executive Directors and Company executives are reviewed
annually having regard to performance and relevant comparative information and are approved by the Board after the Remuneration
Committee has sought independent professional advice, as required. In this respect, consideration is given to normal commercial rates of
remuneration for similar levels of responsibility.
At this stage of the Group’s development, the Remuneration Committee is focused on long-term value generation for shareholders and
therefore consider Long Term Incentives (LTIs) based on achieving specific milestones, to be the preferred method of incentivising Executive
Directors and Senior Executives. With the LTIs selected, the Committee has focused on ensuring Executive Directors and Senior Executives’
long-term performance aligns with long-term value for shareholders.
The Corporate Governance Statement provides further information on the role of this Committee.
34 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Key Management Personnel
For 2024, the Key Management Personnel (KMP) for Comet Ridge comprised:
James McKay
Non-executive Chairman
Tor McCaul
Managing Director
Christopher Pieters
Executive Director
Gillian Swaby
Non-executive Director
Martin Riley
Non-executive Director
Shaun Scott
Non-executive Director
Based on the Group’s current activities, it is the view of the Committee that the Board remain as the KMPs for the organisation. As the
Company moves closer to development and ultimately production, the Committee intends to review its position on those personnel who
could be considered as KMPs.
Non-executive Director Remuneration
The Board’s policy is to remunerate Non-executive Directors at market rates for time, commitment and responsibilities. The Remuneration
Committee determines payments to the Non-executive Directors and reviews their remuneration annually, based on market practice,
duties and accountability. Independent external advice is sought when required.
The maximum aggregate amount of fees that can be paid to Non-executive Directors is subject to approval by shareholders at the Annual
General Meeting. The latest determination was at the Annual General Meeting held on 22 November 2023 when shareholders approved
an aggregate remuneration of $750,000 per year.
Fees for Non-executive Directors are not linked to the performance of the Group, however, to align Directors’ interests with shareholder
interests, the Directors are encouraged to hold shares in the Company. There is no minimum holding prescribed in the Constitution.
No increases to Non-executive Directors fees have been made in 2024 apart from the increase in superannuation guarantee from 10.5% to
11% effective from 1 July 2023. The Non-executive Directors’ remuneration shown below is reported on a gross basis.
Non-executive Directors’ fees (inclusive of superannuation) have been paid on the following basis as at the end of each financial year:
Director fees
2024
2023
$
$
Base Fees
Chair
158,137
157,424
Other Non-executive Directors
82,110
81,740
Additional Fees
Chair of Audit Committee
10,138
10,092
Chairs of Remuneration and Risk Committees
5,069
5,046
Members of committees
3,042
3,028
Executive Remuneration Framework
The objective of the executive remuneration policy is to ensure that the Group’s remuneration arrangements are competitive and
reasonable, enabling it to attract and retain the right calibre of staff and to align the remuneration of Executive Directors and other
executives with shareholder and business objectives. Executive remuneration arrangements comprise a fixed remuneration component
and may also include specific incentives based on key performance areas affecting the Group’s financial and/or operational results as
follows:
(a)
a base salary (which is based on factors such as length of service, qualifications and experience), superannuation, fringe benefits and
performance incentives;
(b)
short-term performance incentives in the form of cash bonuses which are paid only when predetermined key performance indicators
have been met;
(c)
executives engaged through professional service entities are paid fees based on an agreed market based hourly and/or daily rate for
the services provided and may also be entitled to short term performance-based incentives; and
(d)
long-term performance-based incentives comprising performance rights which are designed to align the remuneration of executives
with the business objectives of the Company and its shareholders.
The Remuneration Committee reviews executive remuneration arrangements annually by reference to the Group’s performance, executive
performance and comparable information from industry sectors.
Comet Ridge Limited | Annual Report 2024 35
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Executive and Non-executive Directors and other employed executives receive the superannuation guarantee contribution required by the
Commonwealth Government. For the year ended 30 June 2024 the rate was 11% up to a maximum contribution of $27,399. Executive and
Non-executive Directors and other employed executives do not receive any other retirement benefits; however, some individuals may
choose to sacrifice part of their salary to increase payments towards superannuation.
Details of Remuneration
Details of remuneration of each of the KMP of the Group during the financial year are set out in the following table:
Benefits and Payments
Year Ended 30 June 2024
Short-term
Benefits & Fees
Post-
Employment
Long-term
Benefits
Share-based
Payments
Salary, Fees &
Benefits
Super-
annuation
Long Service
Leave
Total Fixed
Remuneration
Performance
Rights
Total
Directors
$
$
$
$
$
$
J McKay
145,205
15,973
-
161,178
-
161,178
T McCaul
446,332
27,399
9,413
483,144
98,266
581,410
G Swaby
83,105
9,142
-
92,247
-
92,247
C Pieters
73,973
8,137
-
82,110
-
82,110
M Riley
84,018
9,242
-
93,260
-
93,260
S Scott
81,279
8,941
-
90,220
-
90,220
Total KMP
913,912
78,834
9,413
1,002,159
98,266
1,100,425
Benefits and Payments
Year Ended 30 June 2023
Short-term
Benefits& Fees
Post-
Employment
Long-term
Benefits
Share-based
Payments
Salary, Fees &
Benefits
Super-
annuation
Long Service
Leave
Total Fixed
Remuneration
Performance
Rights
Total
Directors
$
$
$
$
$
$
J McKay
145,205
15,247
-
160,452
-
160,452
T McCaul
444,072
25,292
16,059
485,423
105,629
591,052
G Swaby
83,105
8,726
-
91,831
-
91,831
C Pieters
73,973
7,767
-
81,740
-
81,740
M Riley
84,018
8,822
-
92,840
-
92,840
S Scott
81,279
8,534
-
89,813
-
89,813
Total KMP
911,652
74,388
16,059
1,002,099
105,629
1,107,728
The relative proportions of actual remuneration recognised are as follows:
At Risk
At Risk
Fixed Remuneration
Short-term Incentives
Long-term Incentives
Executive Director
2024
2023
2024
2023
2024
2023
T McCaul
83.1%
82.1%
0.0%
0.0%
16.9%
17.9%
C Pieters
100.0%
100.0%
0.0%
0.0%
0.0%
0.0%
Long-term incentives are provided by way of performance rights and the percentages disclosed above are based on the value of the
performance rights expensed during the year.
Comparison of KMP Remuneration to Company Performance
The table below shows the total remuneration cost of the KMP, loss per ordinary share (EPS), and the closing price of ordinary shares on
the ASX at year end for the current year and previous four years.
Relation to performance
2024
2023
2022
2021
2020
Total remuneration ($)
1,100,425
1,107,728
1,045,961
962,648
1,014,741
Loss per share cents
(0.69)
(0.67)
(1.02)
(0.88)
1(1.36)
Share price at year end (cents)
20.0
16.5
17.0
6.2
9.2
1.
The loss for 2020 includes a non-cash write-off of $5,480,000 (0.69 cents) of capitalised exploration and evaluation expenditure for previously drilled
CSG wells in the Galilee Basin that lie outside of the prospective areas of the permits identified for long-term tenure renewal.
36 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Service Agreements
Remuneration and other terms of employment for the Managing Director and the Executive Director are formalised in employment
contracts. The contracts provide for the provision of performance related bonuses and participation in the Comet Ridge Employee
Performance Rights Plan. Other major provisions of the employment agreements are set out below.
Tor McCaul
Term of Agreement:
Base Salary:
Termination Benefit:
Termination Notice:
Chris Pieters
Term of Agreement:
Remuneration:
Termination Benefit:
Termination Notice:
KPIs:
Managing Director (appointed 16 April 2009)
No fixed term
$480,704 per annum (inclusive of superannuation)
Three (3) months’ base salary is to be paid in lieu of notice of termination. Twelve (12) months is payable if
services are terminated due to change of control event. Subject to Board discretion, a further six (6) months
can be paid in addition.
The Company or Mr McCaul may terminate the Agreement at any time providing each other a minimum of
three (3) months’ notice. No termination benefit is required if terminated for cause.
Executive Director (appointed 17 June 2015)
Four months with options for parties to extend as needed
Services provided as a consultant at $1,500 per day
No termination benefits payable
Either party may terminate the Agreement with a minimum of three (3) months’ notice
A bonus of $50,000 for each KPI achieved listed below:
•
Agreement for the commercial offtake of more than 50% of the gas from Mahalo;
•
FID Mahalo;
•
Agreement for the commercial offtake of more than 50% of the gas from Galilee;
•
FID Galilee Basin; and
•
Farmout of the Shallow Coals in the Galilee.
In the event that the position was to become redundant or other factors prevented Mr Pieters from achieving
those KPIs within the allowed time, which were outside of his control, they could be treated as having been
satisfied and able to be paid.
Share-based Compensation
Long-term incentives are provided to certain employees through the Comet Ridge Limited Performance Rights Plan as approved by
shareholders for the purposes of ASX Listing Rule 7.2 Exception 9 most recently at the 2016 Annual General Meeting. Share-based
compensation is equity-settled.
Key Management Personnel Performance Rights
The terms and conditions of each grant of performance rights during the financial year affecting remuneration in the current or a future
period with respect to KMP are shown in the table below. In addition to the performance condition, KMP must satisfy a service condition
of continuous employment with the Company up to and including the date when the performance conditions are achieved. Performance
rights are issued for no consideration and no amount is payable on vesting.
Grant Date
Number of
Rights
Expiry Date
Vesting Date
Fair Value
per Right at
Grant Date
(cents)
Performance Condition
Vested
%
T McCaul
23-Nov-23
500,000
31-Dec-24
01-Oct-24
11.60
Relative TSR against peer companies for period
September 2023 to September 2024
0%
23-Nov-23
300,000
31-Dec-24
01-Oct-24
9.00
Absolute TSR of share price for September
2023 compared to September 2024
0%
23-Nov-23
200,000
31-Dec-24
01-Oct-24
17.00
Lost Time Injury Frequency Rate measured for
12 months ending 30 September 2024 and no
environmental incidents
0%
1,000,000
Comet Ridge Limited | Annual Report 2024 37
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
The movements in the current year of the number of performance rights granted to KMP are as follows:
Grant Date
Vesting Date
Number at
Beginning of Year
Granted as
Remuneration
During the Year
Number of Rights
Vested1
Number of
Rights Lapsed
Number at End
of Year
T McCaul
16-Nov-21
31-Dec-23
320,000
-
-
(320,000)
-
25-Nov-22
30-Sep-23
660,000
-
(360,360)
(299,640)
-
25-Nov-22
30-Sep-24
660,000
-
(360,360)
(299,640)
-
23-Nov-23
01-Oct-24
-
1,000,000
-
-
1,000,000
1,640,000
1,000,000
(720,720)
(919,280)
1,000,000
1
As per the terms of the performance rights, nil consideration is paid on rights that vest.
Key Management Personnel Shareholdings
The number of ordinary shares in the Company held by each of the KMP of the Group is as follows:
30 June 2024
Balance at
beginning of the year
Shares
purchased
Number of
Rights Vested
Balance at
end of the year
J McKay
38,076,275
-
-
38,076,275
T McCaul
9,381,613
-
720,720
10,102,333
G Swaby
295,372
-
-
295,372
C Pieters
1,576,178
-
-
1,576,178
M Riley
850,895
-
-
850,895
S Scott
1,038,074
-
-
1,038,074
Total
51,218,407
-
720,720
51,939,127
END OF AUDITED REMUNERATION REPORT
14. Performance Rights
Movements in the number of performance rights on issue during the year ended 30 June 2024 as a result of new grants and expiring of
performance rights during the year are as follows:
Grant Date
Expiry Date
No. of Rights
30 June 2023
Granted during
the year
Vested during the
year
Expired during the
year
No. of Rights
30 June 2024
16-Nov-21
31-Dec-23
320,000
-
-
(320,000)
-
16-Dec-21
31-Dec-23
1,098,750
-
(416,250)
(682,500)
-
25-Nov-22
31-Dec-25
1,320,000
-
(720,720)
(599,280)
-
22-Dec-22
31-Dec-25
6,280,000
-
(4,003,500)
(2,276,500)
-
23-Nov-23
31-Dec-24
-
4,000,000
-
(110,000)
3,890,000
9,018,750
4,000,000
(5,140,470)
(3,988,280)
3,890,000
The number of rights granted to Directors and the five most highly remunerated officers in the 2024 financial year were:
Name
Role
No. of Rights Granted
Tor McCaul
Managing Director
1,000,000
Ashley Edgar
General Manager – Subsurface
590,000
Philip Hicks
Chief Financial Officer
565,000
Stephen Rodgers
Company Secretary
490,000
Dale Aaskow
Chief Operating Officer
465,000
Anthony Papinczak
General Manager - Development
185,000
3,295,000
Since the end of the financial year and up to the date of this report no new performance rights have been issued.
38 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
15. Insurance of Directors and Officers
The Company has entered into agreements with Directors to indemnify them against any claims and related expenses that may arise in
their capacity as Directors and Officers of the Company or a related body corporate, except where the liability arises out of conduct involving
a lack of good faith and subject to the provisions of the Corporations Act 2001.
During the financial year, the Company paid premiums for Directors’ and Officers’ Liability Insurance. The contract prohibits disclosure of
the details of the nature of the liabilities covered or the premium paid.
The Company has not during or since the end of the financial period indemnified or agreed to indemnify an auditor of the Company.
16. Proceedings on Behalf of Company
No person has applied for leave of Court under section 237 of the Corporations Act 2001 to bring proceedings on behalf of the Company or
intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or
any part of those proceedings. The Company was not a party to any such proceedings during the year.
17. Rounding of Amounts to Nearest Thousand Dollars
Pursuant to Legislative Instrument 2016/191 issued by the Australian Securities & Investments Commission, amounts in the Financial Report
have been rounded off to the nearest thousand dollars unless otherwise indicated.
18. Non-Audit Services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and
experience with the Company and/or the Group are important. The Group did not pay the auditor for any non-audit services.
The Board of Directors will continuously consider the position and, in accordance with advice received from the Audit Committee, ensure
that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The Directors are satisfied that the provision of non-audit services (where applicable) by the auditor, does not
compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:
•
all non-audit services will be reviewed to ensure they do not impact the impartiality and objectivity of the auditor; and
•
none of the services (where applicable) undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants (including Independence Standards).
Details of the amounts paid or payable to the auditor for audit services provided during the year are set out in Note 5 Auditors’
Remuneration.
This report is made in accordance with a resolution of the Board of Directors.
Tor McCaul
Managing Director
Brisbane, Queensland, 25 September 2024
Comet Ridge Limited | Annual Report 2024 39
Level 38, 345 Queen Street
Brisbane, QLD 4000
Postal address
GPO Box 1144
Brisbane, QLD 4001
+61 7 3222 8444
pitcher.com.au
Nigel Fischer
Mark Nicholson
Peter Camenzuli
Jason Evans
Kylie Lamprecht
Norman Thurecht
Brett Headrick
Warwick Face
Cole Wilkinson
Simon Chun
Jeremy Jones
Tom Splatt
James Field
Daniel Colwell
Robyn Cooper
Felicity Crimston
Cheryl Mason
Kieran Wallis
Murray Graham
Andrew Robin
Karen Levine
Edward Fletcher
Robert Hughes
Ventura Caso
Tracey Norris
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme approved under Professional
Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney
The Directors
Comet Ridge Limited
Level 3, 410 Queen Street
Brisbane QLD 4000
Auditor’s Independence Declaration
In relation to the independent audit for the year ended 30 June 2024, to the best of my knowledge and belief
there have been:
(i)
No contraventions of the auditor independence requirements of the Corporations Act 2001; and
(ii)
No contraventions of APES 110 Code of Ethics for Professional Accountants (including
Independence Standards).
This declaration is in respect of Comet Ridge Limited and the entities it controlled during the year.
PITCHER PARTNERS
JASON EVANS
Partner
Brisbane, Queensland
25 September 2024
40 Comet Ridge Limited | Annual Report 2024
FINANCIAL
2024
STATEMENTS
Comet Ridge Limited | Annual Report 2024 41
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2024
Consolidated
June 2024
June 2023
Note
$000’s
$000’s
Other income
Interest received
196
153
Expenses
Employee benefits’ expense
4
(2,307)
(1,939)
Contractors’ & consultancy costs
(494)
(397)
Exploration and evaluation expenditure written-off
(9)
-
Professional fees
(234)
(226)
Corporate expenses
(317)
(243)
Fair value movement of financial liability at fair value
23
(436)
(423)
Occupancy costs
(23)
(14)
Finance costs
4
(2,659)
(2,922)
Other expenses
(754)
(430)
Depreciation
(128)
(124)
LOSS BEFORE INCOME TAX
(7,165)
(6,565)
Income tax expense/(benefit)
6
-
-
LOSS FOR THE YEAR
(7,165)
(6,565)
Other comprehensive loss, net of income tax
Items that may be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations
(24)
(4)
TOTAL OTHER COMPREHENSIVE LOSS, NET OF INCOME TAX
(24)
(4)
TOTAL COMPREHENSIVE LOSS
(7,189)
(6,569)
Loss attributable to:
Owners of the parent
(7,165)
(6,565)
Total comprehensive loss attributable to:
Owners of the parent
(7,189)
(6,569)
LOSS PER SHARE
Cents
Cents
Basic loss per share
7
(0.69)
(0.67)
Diluted loss per share
7
(0.69)
(0.67)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
42 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Consolidated Statement of Financial Position
as at 30 June 2024
Consolidated
Note
June 2024
June 2023
$000’s
$000’s
CURRENT ASSETS
Cash and cash equivalents
8
16,776
11,651
Trade and other receivables
125
59
Financial assets at fair value
9
809
809
Other assets
10
779
875
TOTAL CURRENT ASSETS
18,489
13,394
NON-CURRENT ASSETS
Property, plant and equipment
7
10
Right-of-use assets
73
187
Financial assets at fair value
9
763
1,483
Exploration and evaluation expenditure
11
100,970
96,288
TOTAL NON-CURRENT ASSETS
101,813
97,968
TOTAL ASSETS
120,302
111,362
CURRENT LIABILITIES
Trade and other payables
12
2,752
1,115
Lease liabilities
77
-
Financial liability at fair value
15
32,737
32,300
Provisions
14
868
696
TOTAL CURRENT LIABILITIES
36,434
34,111
NON-CURRENT LIABILITIES
Borrowings
13
7,367
7,018
Lease liabilities
-
187
Financial liability at fair value
15
1,521
2,847
Provisions
14
2,474
2,886
TOTAL NON-CURRENT LIABILITIES
11,362
12,938
TOTAL LIABILITIES
47,796
47,049
NET ASSETS
72,506
64,313
EQUITY
Contributed equity
16
184,835
169,542
Reserves
17
1,561
1,573
Accumulated losses
(113,890)
(106,802)
TOTAL EQUITY
72,506
64,313
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Comet Ridge Limited | Annual Report 2024 43
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Consolidated Statement of Changes in Equity
for the year ended 30 June 2024
Contributed
Equity
Foreign
Currency
Translation
Reserve
Share-based
Payments
Reserve
Accumulated
Losses
Total
$000’s
$000’s
$000’s
$000’s
$000’s
Balance at 1 July 2022
145,693
1,254
835
(100,237)
47,545
Loss for the period
-
-
-
(6,565)
(6,565)
Other comprehensive loss for the period
-
(4)
-
-
(4)
Total comprehensive loss for the period
-
(4)
-
(6,565)
(6,569)
Transactions with owners in their capacity as
owners
Contributions of equity net of transaction costs
22,746
-
-
-
22,746
Shares issued on vesting of performance rights
1,103
-
(1,103)
-
-
Share-based payments
-
-
591
-
591
23,849
-
(512)
-
23,337
Balance at 30 June 2023
169,542
1,250
323
(106,802)
64,313
Balance at 1 July 2023
169,542
1,250
323
(106,802)
64,313
Loss for the period
-
-
-
(7,165)
(7,165)
Other comprehensive loss for the period
-
(24)
-
-
(24)
Total comprehensive loss for the period
-
(24)
-
(7,165)
(7,189)
Transactions with owners in their capacity as
owners
Contributions of equity net of transaction costs
14,090
-
-
-
14,090
Exercise of PURE warrant shares
500
-
-
-
500
Transfer of previous performance rights to
accumulated losses
-
-
(77)
77
-
Shares issued on vesting of performance rights
703
-
(703)
-
-
Share-based payments
-
-
792
-
792
15,293
-
12
77
15,382
Balance at 30 June 2024
184,835
1,226
335
(113,890)
72,506
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
44 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Consolidated Statement of Cash Flows
for the year ended 30 June 2024
Consolidated
Note
June 2024
June 2023
$000’s
$000’s
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
195
148
Payments to suppliers and employees
(3,213)
(2,631)
Interest paid
(1,201)
(1,321)
NET CASH USED IN OPERATING ACTIVITIES
18
(4,219)
(3,804)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation assets
(3,578)
(5,382)
Proceeds from sale of exploration interest to Santos
857
857
Payment for exploration interest purchased from APLNG
(2,000)
(2,000)
Movements in restricted cash
96
(50)
Payment for property, plant and equipment
(3)
(12)
NET CASH USED IN INVESTING ACTIVITIES
(4,628)
(6,587)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings
(500)
(8,006)
Proceeds from issue of shares
15,545
24,000
Share issue costs
(955)
(1,254)
Principal elements of lease payments
(118)
(121)
NET CASH FROM FINANCING ACTIVITIES
13,972
14,619
Net increase in cash held
5,125
4,228
Cash at the beginning of the year
11,651
7,423
CASH AT THE END OF THE YEAR
8
16,776
11,651
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Comet Ridge Limited | Annual Report 2024 45
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Notes to the Financial Statements
Note 1
General information
These financial statements include the consolidated financial statements and notes of Comet Ridge Limited (the Company or Comet Ridge)
and its controlled entities (the Group). Comet Ridge Limited is a for-profit entity for the purpose of preparing the financial statements.
Disclosures with respect to the parent entity are included in Note 27. The financial statements were approved for issue by the Directors on
25 September 2024.
Comet Ridge Limited is a public company limited by shares, incorporated and domiciled in Australia.
Note 2
Summary of material accounting policies
Accounting policies applied in the preparation of this financial report, which are consistent with the previous financial period unless
otherwise stated, are disclosed throughout the notes to the financial statements together with the associated transactions or balances.
Compliance with Accounting Standards
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board and the Corporations Act 2001.
Compliance with IFRS
The consolidated financial statements of the Group also comply with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standard Board (IASB).
Historical cost convention
The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the
measurement at fair value of selected financial assets and financial liabilities.
Going concern
The consolidated financial statements have been prepared on a going concern basis which contemplates that the Group will continue to
meet its commitments and can therefore continue normal business activities and the realisation of assets and settlement of liabilities in
the ordinary course of business.
At 30 June 2024, the Group had $16,776,000 in cash on hand and net current liabilities of $17,945,000 (which includes the CleanCo
Queensland Limited (CleanCo) financial liability of $26,742,000, PURE warrant financial liability of $4,250,000 and the present value of the
APLNG deferred consideration payable of $1,745,000 disclosed as current obligations).
On 18 September 2023, Comet Ridge and CleanCo executed a long-term GSA for Comet Ridge to supply gas to CleanCo from its Mahalo Gas
Hub permits. The GSA remains subject to two conditions precedent, being a transport and gas processing condition (which may be waived
by Comet ridge) and a finance condition. The finance condition requires Comet Ridge to obtain finance to satisfy the supply requirements
under the GSA by 20 December 2024. If this condition is not met, extended or waived, the GSA may terminate and within 30 days (being
20 January 2025) a cash payment of approximately $26,742,000 ($20,000,000 financial liability indexed for CPI) would be due.
Comet Ridge and Santos have a liability to pay their proportional share of $4,000,000 of remaining deferred consideration to APLNG (in two
annual instalments post completion of $2,000,000 or earlier upon a trigger event occurring). At 30 June 2024, $4,000,000 deferred
consideration remains to be paid with Comet Ridge’s share being $2,285,600.
The Group has a number of commitments to continue to progress the Mahalo Gas Hub permits and Galilee permits. These commitments
are made over various timeframes with exploration commitments required to be spent by 30 June 2025 amounting to $4,437,000 as
disclosed in Note 22.
The ability of the Group to continue to adopt the going concern basis of preparation will depend upon a number of matters including the
successful raising in the future of necessary funding through debt, equity, selldown or farm-out of assets, meeting the remaining condition
precedent under the GSA with CleanCo, and/or the successful exploitation of the Group’s tenements to meet these commitments as they
arise.
The existence at 30 June 2024 of the CleanCo financial liability, deferred consideration payable to APLNG as well as exploration expenditure
commitments beyond the next 12 months, creates a material uncertainty that may cast significant doubt on the ability of the Group to
continue as a going concern in the absence of being successful in relation to one of the above financing strategies. In the absence of this
46 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 2
Summary of material accounting policies (continued)
the Group may have to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts different
from those stated in the financial statements. No adjustments for such circumstances have been made in the financial statements.
Comet Ridge continues to actively pursue a number of potential funding transactions to progress the appraisal and development of the
Group’s projects including debt and equity funding, selldown, farm-out and gas prepay arrangements. At the date of this financial report,
given the high demand for natural gas on the east coast and the significant acreage, equity and 2P+2C Reserves and Resources position that
the Group has established in the Mahalo Gas Hub area, the Directors have a reasonable expectation that the Group will be successful with
its future funding initiatives and, as a result, will have adequate resources to fund its future operational requirements and for these reasons
they continue to adopt the going concern basis in preparing the financial report.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Australian
dollars, which is Comet Ridge Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit or Loss and
Other Comprehensive Income.
Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are translated into the presentation currency.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in Other
Comprehensive Income and accumulated as a separate component of equity. When a foreign operation is sold or any borrowings forming
part of the net investment are repaid, a proportionate share of such exchange differences that have been accumulated in equity are
recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income, as part of the gain or loss on sale where
applicable.
Rounding of amounts
The Group is of a kind referred to in Legislative Instrument 2016/191 issued by the Australian Securities & Investments Commission, relating
to the “rounding” of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with
the Legislative Instrument to the nearest one thousand dollars, unless otherwise indicated.
Fair value measurement
For financial reporting purposes, fair value is the price that would be received to sell an asst, or paid to transfer a liability, in an orderly
transaction between market participants (under current market conditions) at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique.
When estimating the fair value of an asset or liability, the Group uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
New accounting standards and interpretations for application in future periods
The new Australian Accounting Standards and Interpretations either adopted or issued but not yet adopted for the 30 June 2024 annual
reporting period are set out below.
New or amended accounting standards and Interpretations adopted
The Group has adopted all the mandatory new and amended Accounting Standards and Interpretations that are relevant to its operations
and effective from 1 July 2023 for the reporting period.
The new and amended accounting standards adopted by the Group effective 1 July 2023 are:
•
AASB 101 Presentation of Financial Statements
•
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors
There is no material impact on the financial report as a result of the adoption of these standards.
Comet Ridge Limited | Annual Report 2024 47
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 2
Summary of material accounting policies (continued)
Accounting standards issued but not yet adopted
There are no accounting standards that are not yet effective and that would be expected to have a material impact on the entity in the
current or future reporting year/periods and on foreseeable future transactions.
Note 3
Material balances - critical accounting estimates and judgements
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise
its judgement when applying the Group’s accounting policies. These estimates and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are
believed to be reasonable under the circumstances.
Management has identified the following critical estimates and judgements applied in the preparation of the financial statements.
•
Going concern – Note 2
•
Financial asset at fair value – Note 9
•
Exploration and evaluation assets – Note 11
•
Borrowings – Note 13
•
Rehabilitation provisions – Note 14
•
Financial liabilities at fair value – Note 15
Details of the nature of assumptions and conditions can be found in the relevant notes to the financial statements.
Note 4
Expenses
Consolidated
June 2024
June 2023
Loss before income tax includes the following specific expenses:
$000’s
$000’s
(a) Employee benefits’ expense
Employee benefits’ expense
(1,305)
(1,152)
Share-based payments’ expense (Refer to Note 20)
(792)
(591)
Defined contribution superannuation expense
(210)
(196)
(2,307)
(1,939)
(b) Financing costs
Interest expense on borrowings
(1,188)
(1,296)
Amortisation of fair value adjustment and establishment costs capitalised on Pure loan
(850)
(848)
Amortisation of fair value adjustment on Santos deferred consideration receivable
137
177
Amortisation of fair value adjustment on APLNG deferred consideration payable
(675)
(844)
Unwinding of discount on rehabilitation and restoration provision
(70)
(104)
Lease liability expense
(13)
(7)
(2,659)
(2,922)
Note 5
Auditors’ remuneration
During the year the following fees were paid or payable for services provided by the auditors of the Group:
Consolidated
June 2024
June 2023
$
$
PricewaterhouseCoopers Australia
Auditing or reviewing the financial statements
-
48,000
-
48,000
Pitcher Partners
Auditing or reviewing the financial statements
90,000
62,500
Tax related services
28,985
10,300
118,985
72,800
118,985
120,800
48 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 6
Income tax
Income Tax Expense
Consolidated
June 2024
June 2023
$000’s
$000’s
(a) Recognised in the Consolidated Statement of Profit and Loss and Other
Comprehensive Income
Current tax
-
-
Deferred tax expense
-
-
Income tax expense
-
-
(b) Numerical reconciliation of income tax expense to prima facie tax on accounting loss
Loss before income tax
(7,165)
(6,565)
Tax benefit at the Australian tax rate of 30% (2023: 30%)
2,150
1,970
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Share options expensed
(238)
(178)
Non-deductible accounting fair value
-
191
Other non-deductible items
(79)
(3)
Current year tax losses not recognised in deferred tax assets
(1833)
(1,980)
Income tax expense
-
-
Deferred Tax Balances
Consolidated
June 2024
June 2023
$000’s
$000’s
Deferred tax asset
-
-
The balance of deferred tax asset comprises:
Deferred tax assets
Tax losses
39,344
32,963
Capital costs deductible over 5 years
512
386
Borrowing costs
-
26
Provisions
4,478
8,907
Leased liabilities
23
36
Accrued expenses
63
-
44,420
42,318
Deferred tax liabilities
Exploration and evaluation expenditure
(25,003)
(24,853)
Leased assets
(19)
-
Accrued interest
(2)
(2)
(25,024)
(24,855)
Net deferred tax asset
19,396
17,463
Deferred tax asset not recognised
(19,396)
(17,463)
Deferred tax asset recognised in accounts
-
-
Accounting Policies
Income tax expense
The income tax expense is the tax payable on the Group’s taxable income for the financial year based on the applicable income tax rate
adjusted by changes in deferred tax assets and liabilities.
Recoverability of unused tax losses
Deferred tax assets and liabilities are recognised for temporary differences at the applicable tax rates that will apply when the assets are
expected to be recovered or liabilities are expected to be settled.
Comet Ridge Limited | Annual Report 2024 49
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 6
Income tax (continued)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses to the extent that future taxable profit will
be available against which the deductible temporary differences and unused tax losses can be utilised. Deferred tax assets have not been
recognised with respect to the following items because it is not probable that future taxable profit will be available against which the Group
can utilise the benefits from the deferred tax assets:
Consolidated
June 2024
June 2023
$000’s
$000’s
Australian temporary differences and tax losses
19,396
17,463
Offshore tax losses
-
-
19,396
17,463
Tax consolidation
Comet Ridge Limited and its wholly owned Australian subsidiaries have implemented the tax consolidation legislation and formed a tax
consolidated group from 1 July 2009. The members of the tax consolidated group have entered into a tax funding agreement such that
each member recognises the assets, liabilities, expenses and revenues in relation to its own transactions, events and balances only. This
means:
i.
the parent entity recognises all current and deferred tax amounts relating to its own transactions, events and balances;
ii.
the subsidiaries recognise all current and deferred tax amounts relating to its own transactions, events and balances; and
iii.
current tax liabilities and deferred tax assets arising with respect to losses in subsidiaries are transferred from the subsidiaries
to the parent entity as inter-company payables or receivables.
The tax consolidated group also has a tax sharing agreement in place to limit the liability of subsidiaries in the tax consolidated group arising
under the joint and several liability requirements of the tax consolidation system, in the event of default of the parent entity to meet its
payment obligations.
Note 7
Earnings per share
The earnings and weighted average number or ordinary shares used in the calculations of basic and diluted earnings per share are as
follows:
June 2024
June 2023
$000’s
$000’s
(7,165)
(6,565)
(7,165)
(6,565)
Number
Number
1,046,296,114
981,229,847
-
-
1,046,296,114
981,229,847
(0.69)
(0.67)
(a) Reconciliation of earnings used in calculating basic and diluted earnings per share:
Loss for the year
Loss used in the calculation of the basic and dilutive earnings per share
(b) Weighted average number of ordinary shares used as the denominator
Weighted average number of ordinary shares used in calculating basic earnings per share
Adjustments for the calculation of diluted earnings per share:
Options/Performance Rights
Weighted average number of ordinary shares used in calculating diluted earnings per
share
(c) Earnings per share:
Basic loss per share (cents)
Diluted loss per share (cents)
(0.69)
(0.67)
(c) Options and performance rights are considered to "be potential ordinary shares" and have been included in the determination of
diluted earnings per share to the extent to which they are dilutive. Details relating to options and performance rights are set out in
Note 20.
50 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 8
Cash and cash equivalents
Consolidated
June 2024
June 2023
$000’s
$000’s
Cash at bank and on hand
16,776
11,651
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original
maturities of three months or less. Interest earned on accounts range from 0.00% - 1.35%.
Note 9
Financial asset at fair value
Consolidated
June 2024
June 2023
Current
$000’s
$000’s
Santos – deferred consideration receivable
809
809
809
809
Non-current
Santos – deferred consideration receivable
763
1,483
763
1,483
1,572
2,292
Accounting Policy
Financial assets are recognised when the Group becomes a party to the contractual provisions of the financial instrument and are measured
initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially
at fair value.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the
Group’s business model for managing them. The Group has classified the deferred consideration receivable from Santos as a financial asset
at fair value through profit or loss.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset
and all substantial risks and rewards are transferred.
Critical accounting estimates and judgements
Santos deferred consideration receivable
On 28 June 2022, Comet Ridge acquired Australia Pacific LNG Pty Ltd’s (APLNG) 30% interest in the Mahalo Joint Venture Project for a total
consideration of $20,000,000 payable in staged payments. Comet Ridge paid a $1,000,000 deposit on 5 August 2021 and the upfront
payment balance of $11,000,000 to APLNG on 28 June 2022. The remaining $8,000,000 of deferred consideration is payable in four annual
instalments of $2,000,000 each commencing from June 2023, unless a post completion trigger event occurs requiring earlier payment. The
trigger events that require earlier repayment are any of the following:
a)
a final investment decision is made for development of gas from the Mahalo Joint Venture Project;
b)
gas production from the Mahalo Joint Venture Project equalling or exceeding 10 Terajoules per day;
c)
a change in control of the Group;
d)
Comet Ridge disposing of more than a 15% interest in the Mahalo Joint Venture Project; or
e)
Comet Ridge is subject to an insolvency event.
At the same time as entering the agreement with APLNG, Comet Ridge executed funding and option agreements with Santos QNT limited
(Santos) to provide loan funding of $13,150,000 to fund the initial consideration payable to APLNG and stamp duty costs. In exchange,
Santos was given an option to purchase 12.86% of the APLNG interest acquired by Comet Ridge at proportional acquisition value of
$8,573,000.
Comet Ridge received a notice from Santos to exercise their option on 23 September 2022, and the sale agreement was executed by both
parties on 26 September 2022. At that date, the $13,150,000 loan owing to Santos was fully repaid via a reduction of $5,143,000 (being
Santos’ share of the $12,000,000 initial consideration paid to APLNG) and cash repayment of $8,007,000 by Comet Ridge. Santos also
assumes liability for its pro-rata share of the $8,000,000 deferred consideration payable to APLNG, being $3,429,000. The upfront
consideration of $5,143,000 and the present value of the deferred consideration receivable of $2,971,000 has been recognised against the
Mahalo Joint Venture Project exploration and evaluation asset to reflect a partial sale of the asset (refer to Note 11).
Comet Ridge Limited | Annual Report 2024 51
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 9
Financial asset at fair value (continued)
On 18 June 2024, Comet Ridge received the second-year deferred consideration payment from Santos of $857,333. The remaining balance
of $1,715,000 (June 2023: $2,571,000) is payable by Santos in equal annual instalments with the next instalment due in June 2025. The
present value of the Santos deferred consideration receivable as at 30 June 2024 is $1,572,000 (2023: $2,292,000).
Interest income on the unwinding of the applied discount of $137,000 (2023: $177,000) was recognised for the year to 30 June 2024.
Fair value measurement
The deferred consideration receivable is initially recognised at fair value through profit or loss as the present value of the $3,429,000
receivable in 4 equal annual instalments. For subsequent measurements, the present value is adjusted for the yearly instalments received
from Santos and the unwinding of the applied discount credited to profit and loss.
The Santos deferred consideration asset is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. The inputs
used in the calculation of the financial asset at fair value as at 30 June 2024 are as follows:
1.
The remaining agreed cash settlement of $1,715,000 (2023: $2,571,000) receivable in two equal instalments in June 2025 and
June 2026.
2.
The pre-tax discount rate applied being 6% (2023: 6%).
Unobservable input
Relationship to fair value
Risk-adjusted discount
rate
The discount rate used reflects Santos’ credit risk. A change in the discount rate by 100 basis points would
increase/decrease the fair value by $22,238 and $21,686 (2023: $43,010 and $41,688) respectively.
Note 10
Other assets
Consolidated
June 2024
June 2023
$000’s
$000’s
Prepayments
380
326
Restricted cash
399
549
779
875
Note 11
Exploration and evaluation assets
Consolidated
Exploration and evaluation expenditure
June 2024
June 2023
$000’s
$000’s
Exploration and evaluation expenditure
125,684
120,993
Less provision for impairment
(24,714)
(24,705)
100,970
96,288
Movements in exploration and evaluation phase
June 2024
June 2023
$000’s
$000’s
Balance at the beginning of year
96,288
100,816
Divestment of interest in Mahalo Joint Venture Project (a)
-
(8,446)
Exploration and evaluation expenditure during the year
4,989
4,097
Exploration and evaluation expenditure written-off
(9)
-
Restoration and rehabilitation asset
(298)
(179)
Balance at the end of year
100,970
96,288
(a)
The Mahalo Joint Venture Project costs divested are as follows:
June 2024
June 2023
$000’s
$000’s
Reduction in up-front APLNG Mahalo JV acquisition cost upon Santos option exercise
-
(5,144)
Santos deferred consideration receivable (present value of $3,429,000)
-
(2,972)
Movement in deferred consideration to APLNG
-
(330)
Total capitalised to Mahalo Joint Venture Project E&E asset
-
(8,446)
52 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 11
Exploration and evaluation assets (continued)
Accounting Policy
Cost
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area
of interest basis. Costs incurred before the Group has obtained the legal rights to explore an area are expensed in the profit or loss.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
Recognition
Exploration and evaluation assets are only recognised if the rights to the area of interest are current and either:
i.
the expenditures are expected to be recouped through successful development and exploitation of the area of interest or by
its sale; or
ii.
activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area
of interest are continuing.
Once the technical feasibility and commercial viability of the area of interest are demonstrable, exploration and evaluation assets
attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation assets to property
and development assets within property, plant and equipment.
The timing and amount of restoration costs expected to be incurred are estimated, and the net present value is included as part of the cost
of the exploration and evaluation activity that gives rise to the need for restoration. A corresponding provision for restoration and
rehabilitation is also recognised. Finance charges arising from the unwinding of the liability are recognised as an expense in the profit or
loss.
Critical accounting estimates and judgements
Exploration expenditure commitments
In order to maintain an interest in the exploration tenements in which it is involved, the Group is required to meet certain conditions
imposed by the various statutory authorities granting the exploration tenements or that are imposed by the joint venture agreements
entered into by the Group. These conditions include minimum expenditure commitments. The timing and amount of minimum exploration
expenditure obligations of the Group may vary significantly from the forecast based on the results of the work performed, which will
determine the prospectivity of the relevant area of interest.
The Group’s minimum expenditure obligations, which are not provided for in the financial statements, are set out in Note 22.
Recoverability of exploration and evaluation expenditure
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial
viability, and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment
testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. The cash-
generating unit shall not be larger than the area of interest.
The Group assesses the recoverability of the carrying value of capitalised exploration and evaluation assets at each reporting date (or during
the year should the need arise). In completing this assessment, regard is given to the Group’s intentions with respect to proposed future
exploration and development plans for individual areas, to the success or otherwise of activities undertaken in individual areas, to the likely
success of future planned exploration activities, and to any potential plans for divestment of individual areas. Any required impairment of
capitalised exploration and evaluation expenditure is completed based on the results of the assessment. Furthermore, for various areas of
interest, exploration and evaluation activities may not have reached a stage to allow a reasonable assessment to be made regarding the
existence of economically recoverable reserves. Accordingly, exploration and evaluation assets may be subject to further impairment in the
future.
In the second half of the 2020 financial year, the Mahalo Joint Venture Project received Commonwealth and Queensland environmental
approvals and Petroleum Leases (PL 1082 and PL 1083) awarded for a term of 30 years. In addition, the remaining tenure of ATP 1191 has
been secured with the award of three Potential Commercial Areas (PCA 302, PCA 303 and PCA 304) for a term of 5 years.
The joint venture partners, Comet Ridge and Santos, are focussed on moving the project into front-end engineering design, followed by
project development. Comet Ridge is comfortable with the recoverability of the exploration and evaluation expenditure for the Mahalo
Joint Venture Project at 30 June 2024.
Comet Ridge Limited | Annual Report 2024 53
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 11
Exploration and evaluation assets (continued)
The Company was awarded ATP 2048 (Mahalo North project) in April 2020. The Mahalo North project contains a north-west extension of
the same coal reservoirs as the Mahalo Joint Venture Project. Comet Ridge has been successful in certifying 43 PJs of 2P Reserves and in
November 2023 a revision of 3P Reserves was undertaken resulting in an increase of 3P Reserves from 100PJs to 149PJs. Capitalised
exploration and evaluation expenditure at 30 June 2024 totals $15,018,000 (2023: $12,460,000), relating to office-based geological and
geophysical interpretation and analysis, work to support a Petroleum Lease (PL) application and environmental approvals, and the costs of
the 2022 financial year appraisal drilling and production testing. There are no indicators of impairment to the carrying value at 30 June
2024.
The Company was also awarded two new Mahalo extension blocks in the 2021 financial year. The first block was ATP 2061 (Mahalo East
project), awarded in September 2020, which contains a north-east extension of the same coal reservoirs as the Mahalo Joint Venture
Project. Capitalised exploration and evaluation expenditure at 30 June 2024 totals $901,000 (2023: $698,000), relating to office-based
geological and geophysical interpretation and analysis. The second block was ATP 2063 (Mahalo Far East project), awarded in May 2021.
Mahalo Far East contains coals that are generally deeper and have notably higher gas content than the main Mahalo high production
fairway, adding a significant additional gas-in-place volume to Comet Ridge’s portfolio. Capitalised exploration and evaluation expenditure
at 30 June 2024 totals $536,000 (2023: $512,000), relating to native title negotiations and office-based geological and geophysical
interpretation and analysis. Mahalo East and Mahalo Far East have not yet reached a stage to allow a reasonable assessment to be made
regarding the existence of economically recoverable reserves.
ATP 743, ATP 744 and ATP 1015 are still under evaluation for both “Shallow” CSG and Conventional “Deeps” and have not yet reached a
stage to allow a reasonable assessment to be made regarding the existence of economically recoverable reserves. The Company has secured
the long-term tenure on these permits via the award of Potential Commercial Areas (PCAs) and renewal of ATP 743, ATP 744 and ATP 1015
by the Queensland Department of Resources. As part of the PCA award process within the Galilee permits, Comet Ridge relinquished
acreage where Contingent Resources do not exist and in the 2022 financial year wrote off $0.24 million of capitalised seismic costs in the
relinquished areas of ATP 743. Capitalised exploration and evaluation expenditure at 30 June 2024 totals $34,267,000 (2023: $34,186,000).
Comet Ridge has reviewed the carrying value of capitalised exploration and evaluation expenditure in the Galilee permits at 30 June 2024
and no impairment has been made during this financial year.
The Gunnedah Basin permits have been fully impaired because of the current uncertainty around the CSG industry in NSW which has
created significant limitations on the Company’s ability to undertake any exploration or development activity. During the 2024 financial
year an amount of $8,900 (2023: $0) of exploration and evaluation expenditure was written-off for the remaining Gunnedah Basin permit
(PEL 427). The Company relinquished its interests in PEL 428 in May 2021, had its renewal application for PEL 6 declined in April 2022 and
had PEL 427 renewed in May 2022 for only 12 of 57 blocks.
Consolidated
Permit
June 2024
June 2023
$000’s
$000’s
PEL 427
9
11
PEL 428
-
(5)
PEL 6
-
(6)
Total
9
-
The New Zealand permit PMP 50100 is in the process of being surrendered and the carrying value of its exploration and evaluation assets
has been written-off.
Interest in joint operations
The Group’s exploration activities are often conducted through joint arrangements. Joint arrangements are classified as joint operations or
joint ventures depending on the contractual rights and obligations that each investor has, rather than the legal structure of the joint
arrangement.
In accordance with AASB 11 Joint Arrangements, all of the Group’s interests in joint arrangements are classified as joint operations. A joint
operation involves joint control of the assets contributed or acquired for the purpose of the joint operation. Each party may take their share
of the output of the joint operation and each bears its share of the expenses incurred. The interests of the Group in joint operations are
brought to account by recognising the Group’s share of jointly controlled assets, liabilities, revenue and expenses.
54 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 11
Exploration and evaluation assets (continued)
The carrying amount of exploration and evaluation expenditure includes the Group’s interest in the exploration and evaluation expenditure
of a number of joint operations. Comet Ridge’s share of the respective joint operations is as follows:
GDJV
Mahalo JV
PEL 427
PEL 428*
PEL 6*
Total
70.0%
57.14%
59.1%
68.4%
29.6%
30 June 2024
$000’s
$000’s
$000’s
$000’s
$000’s
$000’s
Current assets
Cash and cash equivalents
16
-
9
9
2
36
Trade and other receivables
-
-
-
-
-
-
Total current assets
16
-
9
9
2
36
Non-current assets
Exploration and evaluation expenditure
19,157
39,552
816
752
448
60,725
Provision for impairment
-
-
(816)
(752)
(448)
(2,016)
Total non-current assets
19,157
39,552
-
-
-
58,709
Total assets
19,173
39,552
9
9
2
58,745
Current liabilities
Trade and other payables
228
1,387
11
7
4
1,637
Total current liabilities
228
1,387
11
7
4
1,637
Share of joint venture net assets
18,945
38,165
(2)
2
(2)
57,108
GDJV
Mahalo JV
PEL 427
PEL 428
PEL 6
Total
70.0%
70.0%
59.1%
68.4%
29.6%
30 June 2023
$000’s
$000’s
$000’s
$000’s
$000’s
$000’s
Current assets
Cash and cash equivalents
87
-
7
9
2
105
Trade and other receivables
5
-
-
-
-
5
Total current assets
92
-
7
9
2
110
Non-current assets
Exploration and evaluation expenditure
19,487
38,153
811
752
448
59,651
Provision for impairment
-
-
(811)
(752)
(448)
(2,011)
Total non-current assets
19,487
38,153
-
-
-
57,640
Total assets
19,579
38,153
7
9
2
57,750
Current liabilities
Trade and other payables
208
121
10
7
4
350
Total current liabilities
208
121
10
7
4
350
Share of joint venture net assets
19,371
38,032
(3)
2
(2)
57,400
*PEL 428 was relinquished in May 2021 and the renewal application for PEL 6 was declined by the NSW Government in April 2022.
As at 30 June 2024, the principal place of business for PEL 427 is c/- Santos Limited, Level 5, 60 Flinders Street, Adelaide SA 5000. For Mahalo
JV, the principal place of business is c/- Santos Limited, Level 5, 60 Flinders Street, Adelaide SA 5000. For GDJV, the principal place of
business is c/- Comet Ridge Ltd, Level 3, 410 Queen Street, Brisbane QLD 4000.
The Group has fully impaired its interest in the Gunnedah Basin Licences PEL 427.
The Group’s minimum expenditure obligations with respect to its interests in joint operations are as follows:
Consolidated
June 2024
June 2023
Minimum expenditure requirements
$000’s
$000’s
●not later than 12 months
1,888
778
●between 12 months and 5 years
4,525
1,809
6,413
2,587
Comet Ridge Limited | Annual Report 2024 55
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 12
Trade and other payables
Consolidated
June 2024
June 2023
Current
$000’s
$000’s
Trade payables
2,486
953
Payroll tax and other statutory liabilities
229
126
Other payables
37
36
2,752
1,115
Trade payables include $1,637,000 (2023: $350,000) for the Group’s share of joint operation liabilities (refer Note 11).
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The
amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months from reporting date. The carrying amounts of trade and other payables are considered to be
the same as their fair values, due to their short-term nature.
Note 13
Borrowings
Consolidated
June 2024
June 2023
$000’s
$000’s
Non-current
Loan payable to PURE Asset Management Pty Ltd
7,367
7,018
7,367
7,018
PURE Asset Management loan
Comet Ridge entered into a binding facility agreement with PURE Asset Management Pty Ltd (PURE) on 9 September 2021 to provide the
Company access to a term loan facility for $10,000,000 provided in two tranches of $6,500,000 and $3,500,000 respectively. The facility
provides funding to progress appraisal activities for the Mahalo Gas Hub area and other corporate activities. Both tranches have been
drawn with a maturity date of 17 September 2025.
On drawdown of the respective tranches, Comet Ridge issued warrant shares that entitle PURE to acquire one Comet Ridge share per
warrant at the exercise prices outlined in the facility terms below. The warrants are exercisable by PURE at any point in time prior to the
maturity date of the loan facilities. The fair value of the warrants and loan establishment costs have been deducted from the gross proceeds
of the loan on the date of drawdown reflecting the fair value of the loan on that date as set out in the table below.
The warrants are separately recognised as a financial liability at fair value through the Consolidated Statement of Profit or Loss and Other
Comprehensive Income as disclosed in Note 15. In line with the accounting policy, the difference between the face value of the loan
(repayment amount) and determined fair value is recognised in the profit and loss over the loan period utilising the effective interest rate
method.
On 26 March 2024, PURE exercised 3,787,879 Tranche 2 warrant shares at $0.132 per share for cash consideration received by the Company
of $500,000. The funds received by Comet Ridge were used to make a partial prepayment on the loan, reducing the face value of the loan
balance to $9,500,000.
Consolidated
June 2024
June 2023
$000’s
$000’s
7,018
6,170
(500)
-
110
110
739
738
Opening balance
Partial repayment of loan – exercised warrant shares
Loan establishment costs amortised
Interest charge on financial liability
Fair value of loan payable
7,367
7,018
Should PURE exercise all of their warrants on issue being 62,121,212 warrants (2023: 65,909,091 warrants), Comet Ridge would receive
cash consideration of $9,500,000 (2023: $10,000,000) which can be used to repay the remaining loan amount.
56 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 13
Borrowings (continued)
Facility terms and security
Lender:
PURE Asset Management Pty Ltd
Structure:
Term loan with detached warrants
Interest:
Prior to Mahalo Joint Venture Project FID: 12%
Post Mahalo Joint Venture Project FID: 10%
Interest-only payment in quarterly instalments
Term:
48 months from utilisation
Repayment:
Non-amortising bullet repayment
Voluntary repayment(s) subject to cascading fees
Warrants:
39,393,939 warrant shares issued on 12 August 2021 with an exercise price of 16.5 cents per warrant share
22,727,273 warrant shares (after exercise of 3,787,879 in March 2024) issued on 31 March 2022 with an
exercise price of 13.2 cents per warrant share
Financial Covenant:
Minimum $1.5 million cash balance
Security:
First ranking general security over all present and after-acquired property of the Company and subsidiaries
Accounting Policy
Borrowings are interest bearing and are initially recognised at fair value, net of transaction costs incurred. Subsequent to initial recognition,
borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in profit or loss over the
period of the borrowings using the effective interest method.
Borrowings are removed from the Consolidated Statement of Financial Position when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another
party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other
income or finance costs.
Note 14
Provisions
Consolidated
June 2024
June 2023
Current
$000’s
$000’s
Employee benefits
538
588
Restoration & rehabilitation
330
108
868
696
Non-current
Employee benefits
52
34
Restoration & rehabilitation
2,422
2,852
2,474
2,886
3,342
3,582
June 2024
June 2023
Movements in carrying amounts of restoration and rehabilitation
$000’s
$000’s
Balance at the beginning of the year
2,960
3,025
Reductions subtracted from exploration and evaluation expenditure
(298)
(179)
Write-off of increase to New Zealand provision
20
10
Unwind of discount - finance charges
70
104
Balance at the end of the year
2,752
2,960
Comet Ridge Limited | Annual Report 2024 57
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 14
Provisions (continued)
Accounting Policy
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an
outflow of economic benefits will result, and that outflow can be reliably measured.
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled wholly within 12 months after
the end of the reporting period in which the employees render the related service are recognised in respect of employees’ services up to
the end of the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual
leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables.
Rehabilitation provision
The Group records the present value of the estimated cost of legal and constructive obligations to restore disturbances in the period in
which the obligation arises. The nature of rehabilitation activities includes the abandonment of wells, removal of facilities and restoration
of affected areas. Typically, the obligation arises when the well is spudded (commences drilling) or the infrastructure is installed.
When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the related asset. Over time,
the liability is increased for the change in the present value based on a risk adjusted pre-tax discount rate appropriate to the risks inherent
in the liability. The unwinding of the discount is recorded as an expense within finance costs.
The carrying amount capitalised will be amortised over the useful life of the related asset once production commences. The assets’ useful
lives are currently estimated at between one and fifteen years. Costs incurred which relate to an existing condition caused by past
operations, and which do not give rise to a future economic benefit, are expensed.
Where the underlying cost to rehabilitate has increased, this is capitalised to the asset and amortised over the remaining life of the asset
once in production.
Critical accounting estimates and judgements
The Group estimates the future rehabilitation costs of gas wells and associated infrastructure at the time of installation. In most instances,
rehabilitation of assets occurs many years into the future. This requires assumptions to be made on the rehabilitation date, the extent of
rehabilitation activities required, requirements of future environmental legislation, methodology and technologies used to determine the
future rehabilitation cost.
The rehabilitation obligation is discounted to present value using a ten-year government bond discount rate as this is reflective of the risk-
free rate over the period to rehabilitation of the assets. These estimates require significant management judgement, in particular to the
estimated future timing and cost of well rehabilitation and are subject to risk and uncertainty that may be beyond the control of the Group;
hence, there is a possibility that changes in circumstances will materially alter projections, which may impact the recoverable amount of
assets and the value of rehabilitation obligations at each reporting date.
Note 15
Financial liabilities at fair value
Consolidated
June 2024
June 2023
$000’s
$000’s
Current
CleanCo - financial liability
26,742
25,656
PURE Asset Management - warrant shares
4,250
4,900
APLNG - deferred consideration payable
1,745
1,744
32,737
32,300
Non-current
APLNG - deferred consideration payable
1,521
2,847
1,521
2,847
34,258
35,147
58 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 15
Financial liabilities at fair value (continued)
Critical accounting estimates and judgements
CleanCo liability
On 18 September 2023, Comet Ridge Mahalo Pty Ltd (CML) executed a seven-year Gas Sales Agreement (GSA) with CleanCo, subject to
approval by CleanCo’s shareholding Ministers within 90 days. Approval by the shareholding Ministers approvals was subsequently
confirmed by CleanCo on 15 December 2023. A summary of the key GSA terms are as follows:
Commencement Date
Between 1 July 2025 and 30 June 2026
The GSA also has provisions which provide for a Commencement Date after 30 June 2026.
Volume
3 PJ per annum. CleanCo has the option to increase the volume to 3.6 PJ per annum prior to FID
Delivery Point
Wallumbilla
Contract Period
The contract is for a seven-year period, with CleanCo having the option to reduce this to five years,
and both parties having the option to agree to extend for up to a further five years.
Price
Pricing is market-based, with CPI escalation in Australian dollars.
Monthly Repayments
CML to make monthly loan repayments during the GSA term to account for previous investment
made in CML and the Mahalo JV by Stanwell Limited, prior to the arrangement being assigned to
CleanCo.
Conditions
1.
Approval by CleanCo’s Shareholding Ministers (satisfied prior to 31 December 2023);
2.
Approval by Comet Ridge’s Board of Directors (satisfied prior to 31 December 2023);
3.
CML obtains reserves certificate for 115% of total GSA volume (satisfied prior to 30 June 2024);
4.
CML obtaining finance to satisfy the supply requirements under the GSA; and
5.
CML entering into gas transportation agreements to provide gas to the Delivery Point.
On 15 April 2024, a GSA amendment letter was signed by both parties acknowledging the satisfaction of condition 3 and amended the
satisfaction dates for conditions 4 and 5 to 20 December 2024 and 31 October 2024 respectively. If CML is unable to satisfy condition 4 or
have the condition extended (if required) or waived by 20 December 2024, then the GSA may be terminated, and a cash settlement would
be triggered on or before 20 January 2025. As condition 5 will most likely form part of the Mahalo Gas Hub infrastructure process and can
be waived by CML, CML’s view is that this condition will not trigger an earlier possible cash settlement. The amount owing to CleanCo has
been recognised as a current liability as the Group does not have a right to defer settlement for at least twelve months.
Based on the longstanding relationship between the parties and the progress Comet Ridge has made with development of the Mahalo Gas
Hub permits and its dataroom funding process, Comet Ridge believes it will be able to meet these timelines or agree extensions (if required),
noting the window for gas supply under the GSA is prior to 30 June 2026.
Fair value measurement
In considering the above, Comet Ridge has determined that a cash settlement continues to represent the maximum liability under the GSA
and has therefore continued to recognise the liability as a “financial liability at fair value through profit or loss”. An expense of $1,086,000
(2023: $1,061,000) has been recorded in the 2024 financial year.
Valuation techniques and process used to determine fair value at 30 June 2024
The fair value of the CleanCo liability is based on the anticipated financial liability arising from the GSA executed on 18 September 2023.
The CleanCo liability is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. The inputs used in the
calculation of the fair value of the financial liability at fair value are as follows:
1.
The option with the greatest liability that a market participant would want to be compensated for is a cash settlement based on
the remaining condition precedent contained within the executed GSA not being met or waived, representing the maximum
liability under the GSA. As a result, the $20,000,000, indexed for CPI, is the basis for determining the liability.
2.
The earliest date for the cash payment under point 1 is 20 January 2025 (2023: 30 September 2023), giving a period of indexation
of 10.9 years (2023: 9.5 years) from March 2014.
3.
The CPI rate used to index the $20,000,000 cash payment from March 2014 is based on actual quarterly CPI rates from March
2014 to 30 June 2024 and forecast at 1.33% (2023: 1.28%) per quarter for the remaining period to 20 January 2025 (2023: 30
September 2023).
Comet Ridge Limited | Annual Report 2024 59
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 15
Financial liabilities at fair value (continued)
The relationships between the unobservable inputs and the fair value of the financial liability at fair value are as follows:
Unobservable input
Relationship to fair value
Agreement term
If CML is unsuccessful in satisfying the remaining condition precedent (No. 4) specified in the GSA, or have it
extended or waived, by 20 December 2024 the cash payment would be payable no earlier than 20 January
2025 (2023: 30 September 2023).
CPI rate
If the 1.33% (2023: 1.28%) per quarter forecast CPI rate reduces/increases to a low of 0.83% per quarter or a
high of 1.83% per quarter (2023: low of 0.78% and high of 1.78% per quarter), the indexed liability will reduce
or increase by approximately 1.9% or $515,759 (2023: 1.3% or $326,524) respectively.
Parent Entity Guarantee
Comet Ridge Limited has provided a parent company financial guarantee to Comet Ridge Mahalo Pty Ltd (CML) in favour of Comet Ridge
Mahalo’s potential $20,000,000 liability (indexed at CPI from 2014) to CleanCo.
The guarantee represents a contingent liability of the parent should CML not be able to settle the obligation if and when it falls due.
Deferred consideration payable – APLNG
On 28 June 2022, Comet Ridge acquired Australia Pacific LNG Pty Ltd’s (APLNG) 30% interest in the Mahalo Joint Venture Project for a total
consideration of $20,000,000 payable in staged payments. Comet Ridge paid a $1,000,000 deposit on 5 August 2021 and the upfront
payment balance of $11,000,000 was paid to APLNG on 28 June 2022. The remaining $8,000,000 of deferred consideration is payable in
four annual instalments of $2,000,000 each commencing from June 2023, unless a post completion trigger event occurs requiring earlier
payment. The trigger events that require earlier repayment are any of the following:
a)
a final investment decision is made for development of gas from the Mahalo Joint Venture Project;
b)
gas production from the Mahalo Joint Venture Project equalling or exceeding 10 Terajoules per day,
c)
a change in control of the Group;
d)
Comet Ridge disposing of more than a 15% interest in the Mahalo Joint Venture Project; or
e)
Comet Ridge is subject to an insolvency event.
Comet Ridge paid the second-year post completion deferred consideration payment of $2,000,000 to APLNG on 26 June 2024. The balance
of $4,000,000 ($2,285,000 net to Comet Ridge) is payable in two equal annual instalments with the next instalment due in June 2025.
Fair value measurement
The fair value of the deferred consideration payable is initially recognised as the present value of the $8,000,000 payable in 4 equal annual
instalments and has been capitalised to the Mahalo Joint Venture Project exploration and evaluation asset. For subsequent measurements,
the present value is adjusted for yearly instalments paid and the unwinding of the discount applied expensed to profit and loss. An expense
of $675,000 (2023: $844,000) has been recorded in the 2024 financial year.
The APLNG liability is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. The inputs used in the calculation
of the financial liability at fair value as at 30 June 2024 are as follows:
1. The remaining agreed cash settlement of $4,000,000 payable in $2,000,000 instalments over 2 years commencing June 2025 (2023:
$6,000,000 over 3 years commencing June 2024)
2. The pre-tax discount rate applied being 14.7% (2023: 14.7%)
The relationships between the unobservable inputs and the fair value of the financial liability at fair value are as follows:
Unobservable input
Relationship to fair value
Risk-adjusted discount
rate
The discount rate used is adjusted for the Group’s own credit risk. A change in the discount rate by 200 basis
points would increase/decrease the fair value by $85,137 and $81,328 (2023: $157,014 and $148,362)
respectively.
60 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 15
Financial liabilities at fair value (continued)
Warrant shares – PURE Asset Management Pty Ltd
On 9 September 2021, Comet Ridge executed a binding agreement with PURE Asset Management Pty Ltd (PURE) to provide Comet Ridge
access to a secured term loan facility of up to $10,000,000. The facility has been fully drawn in two tranches of $6,500,000 and $3,500,000
respectively.
The loan agreement with PURE also contains detached warrant shares, with Comet Ridge issuing a total of 65,909,091 warrant shares in
two tranches (as per below) exercisable for a period of 48 months from utilisation of the Tranche 1 loan on 17 September 2021.
•
Tranche 1: 39,393,939 warrant shares issued on 12 August 2021 exercisable at $0.165 per share
•
Tranche 2: 26,515,152* warrant shares issued on 31 March 2022 exercisable at $0.132 per share
*On 26 March 2024, PURE exercised 3,787,879 Tranche 2 warrant shares at $0.132 per share leaving a total of 22,727,273 warrant shares
on issue under Tranche 2.
Fair value measurement
The fair value of the warrant share financial liability is calculated using a Black-Scholes valuation methodology. The key inputs into the fair
value calculation are:
a)
Exercise price of each tranche of warrants (Tranche 1 $0.165 per share / Tranche 2 $0.132 per share);
b)
Expected volatility of the Company’s share price calculated at 45.4% (2023: 69.7%), reflecting the assumption that historical
volatility is indicative of future trends (which may not necessarily be the actual outcome);
c)
Share price of the Company on each balance date being $0.20 (2023: $0.165) (noting that no allowance has been made for
discounting the share price to reflect the issue price of an alternate equity raising if the warrants had not been issued); and
d)
Expected remaining term of the warrants being 1.21 years (2023: 2.22 years).
The warrant share financial liability has been classified as Level 3 in the fair value hierarchy and is recognised as a “financial liability at fair
value through profit or loss”. A gain of $650,000 has been recorded in the 2024 financial year to reflect the reduction (2023: gain $638,000)
in the fair value of the warrant shares due to the exercise of 3,787,879 Tranche 2 warrant shares and the reduction in remaining term of
the warrants.
Unobservable input
Relationship to fair value
Expected volatility
The expected volatility used is based on historical data and reflects the assumption that the historical volatility
over a period is indicative of future trends, which may not necessarily be the actual outcome. A change in
volatility by 1,000 basis points would decrease/increase the fair value by $345,406 and $374,105 (2023:
$517,631 and $495,702) respectively.
Note 16
Contributed equity
Consolidated
June 2024
June 2023
$000’s
$000’s
Ordinary shares - fully paid
184,835
169,542
Movements in ordinary shares
June 2024
June 2023
June 2024
June 2023
Number of Shares
Number of Shares
$000’s
$000’s
Balance at the beginning of the period
1,010,373,085
860,034,445
169,542
145,693
Share placement @ 17.5 cents per share 1
-
137,142,858
-
24,000
Share placement @ 17.0 cents per share 2
88,500,000
-
15,045
-
Exercise of warrant shares by PURE Asset
Management3
3,787,879
-
500
-
Performance rights vested
5,140,470
13,195,782
7035
1,103
Share issue costs 1,2,4
-
-
(955)
(1,254)
Balance at the end of the year
1,107,801,434
1,010,373,085
184,835
169,542
Comet Ridge Limited | Annual Report 2024 61
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 16
Contributed equity (continued)
1 On 8 September 2022, Comet Ridge announced a placement of new shares to institutional and sophisticated investors to raise
$24,000,000 (before share issue costs). The placement comprised the issue of 137,142,858 new shares at an issue price of $0.175 per
share. The placement shares were allotted to investors on 15 September 2022. Share issue costs of $1,254,000 were payable by Comet
Ridge in relation to the placement.
2 On 14 February 2024, Comet Ridge announced a placement of new shares to institutional and sophisticated investors to raise
$15,045,000 (before share issue costs). The placement comprised the issue of 88,500,000 new shares at an issue price of $0.17 per
share. The placement shares were allotted to investors on 21 February 2024. Share issue costs of $945,000 were payable by Comet
Ridge in relation to the placement.
3 On 26 March 2024, PURE Asset Management exercised 3,787,879 Tranche 2 warrant shares at an exercise price of $0.132 per warrant
share.
4 Share issue costs of $10,000 were payable by Comet Ridge in relation to the 5,140,470 shares issued for vested performance rights
during the year to 30 June 2024 and the exercise of 3,787,879 warrant shares by PURE Asset Management.
5 The fair value of vested performance rights is transferred from the Share-based Payments’ Reserve.
Accounting Policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction,
net of tax, from the proceeds.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number
of and amounts paid on the shares held. In most situations, Comet Ridge will conduct voting procedures at General Meetings, including the
Annual General Meeting, via a poll.
Note 17
Reserves
Consolidated
June 2024
June 2023
$000’s
$000’s
Foreign currency translation
1,226
1,250
Share-based payments
335
323
1,561
1,573
June 2024
June 2023
The movements in the Share-based Payments’ Reserve during the year are as follows:
$000’s
$000’s
Balance at the beginning of the year
323
835
Transfer of value of performance rights on share issue
(703)
(1,103)
Transfer of previous performance rights to accumulated losses
(77)
-
Share-based payments during the year
792
591
Balance at the end of the year
335
323
Accounting Policy
Foreign Currency Translation Reserve
The Foreign Currency Translation Reserve records exchange differences arising on translation of foreign controlled entities.
Share-based Payments Reserve
The Share-based Payments’ Reserve is used to record the expense associated with options and performance rights granted to employees
under equity-settled share-based payment arrangements. It is also used to record fair value of options granted for other goods and services
as well as acquisition of other assets.
62 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 18
Cash flow information
Consolidated
June 2024
June 2023
(a) Reconciliation of cash flow from operations
$000’s
$000’s
Loss for the year
(7,165)
(6,565)
Depreciation and amortisation of borrowing costs
238
235
Exploration and evaluation assets written-off
9
-
Share-based payments
792
591
Discount unwinding on rehabilitation provision and fair value liabilities
1,347
1,507
Net exchange differences
(24)
(4)
Movement in financial liability at fair value
436
423
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(67)
77
(Increase)/decrease in prepayments and deposits paid
(1)
30
Increase/(decrease) in trade payables and accruals
230
(163)
(Decrease)/increase in provisions
(14)
65
(4,219)
(3,804)
(b) Non-cash financing and investing activities
Non-cash investing and financing activities disclosed in other notes are:
•
$137,000 gain on unwinding of discount on deferred consideration receivable from Santos – Note 9
•
$675,000 expense on unwinding of discount on deferred consideration payable to APLNG – Note 15
•
Performance rights vested for no cash consideration – Note 20
Note 19
Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers. The
chief operating decision makers, who are responsible for allocating resources and assessing performance of the operating segments, are
the Board of Directors.
The principal operating activities of the Group are the exploration and evaluation of its tenements for gas reserves. The internal reports
used by the Board of Directors in assessing performance and determining the allocations of resources is cash flow reporting of exploration
and evaluation activities as one segment.
Note 20
Share-based payments
Share-based payments
The share-based payments’ expense included in the financial statements with respect to performance rights issued during the year and
already issued in prior years is as follows:
Consolidated
June 2024
June 2023
$000’s
$000’s
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Share-based payments’ expense included in employee benefits’ expense
792
591
Employee Performance Rights
Employee performance rights are provided to certain employees via the Comet Ridge Limited Employee Performance Share Rights Plan as
approved by shareholders at the 2010 Annual General Meeting and refreshed at the 2016 Annual General Meeting. Performance rights are
granted on terms determined by the Directors.
Performance rights are issued for no consideration and provide an equity-based reward for employees that is linked with the success of
performance conditions determined when the performance rights are granted. The performance criteria are determined by the Board for
each tranche and are likely to be matters such as continuation of employment, successful compliance and operational results (including
safety results and no environmental impacts), increase in shareholder value on an absolute and relative performance basis linked to the
share price of the Company and its relative peers, and in some cases on reserve targets.
Comet Ridge Limited | Annual Report 2024 63
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 20
Share-based payments (continued)
The fair value of performance rights is determined at grant date. The value of performance rights that are issued subject only to non-market
conditions such as a service condition or subject to a service condition and a performance condition e.g. reserves certification, is determined
by reference to the quoted price of the Company’s shares on the ASX. The fair value of performance rights at grant date issued subject to
a market condition e.g. Total Shareholder Return performance is determined using generally accepted valuation techniques including Black-
Scholes option pricing model and Monte Carlo simulation that take into account the term of the performance right, the impact of dilution,
the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free rate for the
term of the performance right and an appropriate probability weighting to factor the likelihood of the satisfaction of non-vesting conditions.
The following table shows the number and movements of performance rights during the 2024 and 2023 years:
2024
2023
Average Exercise Price
per Right
Number of Rights
Average Exercise Price
per Right
Number of Rights
As at 1 July
$0.00
9,018,750
$0.00
16,395,000
Granted during the year
$0.00
4,000,000
$0.00
7,600,000
Vested during the year
$0.00
(5,140,470)
$0.00
(13,195,782)
Expired during the year
$0.00
(3,988,280)
$0.00
(1,780,468)
As at 30 June
$0.00
3,890,000
$0.00
9,018,750
The average weighted share price of vested rights during the 2024 year was $0.167 (2023: $0.135). The average weighted remaining
contractual life of performance rights outstanding at the end of the 2024 year was 0.5 years (2023: 0.19 years). All rights outstanding at 30
June 2024 are unvested and not ready to be exercised.
The expected price volatility is based on the historic volatility (based on the remaining life of the rights), adjusted for any expected changes
to future volatility due to publicly available information. The amount assessed as fair value at the grant date is allocated equally over the
period from grant date to vesting date.
2024
Performance
Rights
Grant Date
Vesting Conditions
Fair Value Inputs
Fair
Value
per Right
Market-based
tranches
23 November 2023
Calculated by reference to Comet Ridge
share price performance (absolute) and
relative to peer group performance
(relative) for the period September 2023
to September 2024
No. of rights granted:
500,000 (relative), 300,000 (absolute)
Exercise price per share: Nil
Expiry date: 31 Dec 2024
Share price at grant date: $0.17
Expected price volatility: 49%
Expected dividend yield: Nil
Risk-free interest rate: 3.69%
Relative peer volatility: various
Relative peer group: ASX:CTP, ASX:GLL,
ASX:BLU and ASX:GAS
Relative:
$0.116
Absolute:
$0.09
23 November 2023
Calculated by reference to Comet Ridge
share price performance (absolute) and
relative to peer group performance
(relative) for the period September 2023
to September 2024
No. of rights granted:
1,500,000 (relative), 900,000 (absolute)
Exercise price per share: Nil
Expiry date: 31 Dec 2024
Share price at grant date: $0.17
Expected price volatility: 49%
Expected dividend yield: Nil
Risk-free interest rate: 3.69%
Relative peer volatility: various
Relative peer group: ASX:CTP, ASX:GLL,
ASX:BLU, ASX:GAS, ASX:EEG and ASX:VEN
Relative:
$0.115
Absolute:
$0.09
Non-market
based tranche
23 November 2023
Lost Time Injury Frequency Rate (LTIFR)
measured from September 2023 to
September 2024 to be in top quartile of
peer performance and no
environmental incidents or spills of any
form.
No. of rights granted: 800,000
Based on share price at date of grant of $0.17
with nil expected dividends. Fair value
adjusted by a probability factor that vesting
conditions will be met based on historical
evidence and management judgement at the
date of grant. Nil exercise price paid upon
vesting. The maximum term of the rights is
1.1 years.
$0.17
64 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 20
Share-based payments (continued)
2023
Performance
Rights
Grant Date
Vesting Conditions
Fair Value Inputs
Fair
Value per
Right
Market-based
tranches
25 November 2022
Calculated by reference to Comet Ridge
share price performance (absolute) and
relative to peer group performance
(relative) for the period August 2022 to
August 2023
No. of rights granted:
528,000 (relative), 528,000 (absolute)
Exercise price per share: Nil
Expiry date: 31 Dec 2025
Share price at grant date: $0.18
Expected price volatility: 75%
Expected dividend yield: Nil
Risk-free interest rate: 3.27%
Relative peer volatility: various
(Comet Ridge 51.34% relative to peers)
Relative:
$0.124
Absolute:
$0.088
22 December 2022
Calculated by reference to Comet Ridge
share price performance (absolute) and
relative to peer group performance
(relative) for the period September 2022
to August 2023
No. of rights granted:
1,884,000 (relative), 1,884,000 (absolute)
Exercise price per share: Nil
Expiry date: 31 Dec 2025
Share price at grant date: $0.165
Expected price volatility: 75%
Expected dividend yield: Nil
Risk-free interest rate: 3.29%
Relative peer volatility: various
(Comet Ridge 50.18% relative to peers)
Relative:
$0.11
Absolute:
$0.077
Non-market
based
tranches
25 November 2022
Achieving certain performance
measures relating to safety
performance, nil environmental
incidents, compliance matters and gas
sales arrangements.
No. of rights granted: 264,000
Based on share price at date of grant of $0.18
with nil expected dividends. Fair value
adjusted by a probability factor that vesting
conditions will be met based on historical
evidence and management judgement at the
date of grant. Nil exercise price paid upon
vesting. The maximum term of the rights is
3.1 years.
$0.18
22 December 2022
As above
No. of rights granted: 2,512,000
As above, except for share price at grant of
$0.165 and maximum term of the rights being
3.0 years.
$0.165
Note 21
Contingent liabilities
There are no contingent liabilities of the Group as at 30 June 2024 (2023: $nil).
Note 22
Commitments
Exploration expenditure
In order to maintain an interest in the exploration tenements in which the parent is involved, the parent is committed to meet the conditions
under the agreements. The timing and amount of exploration expenditure and obligations of the parent are subject to the minimum work
or expenditure requirements of the permit conditions or farm-in agreements (where applicable) and may vary significantly from the forecast
based on the results of the work performed which will determine the prospectivity of the relevant area of interest. The obligations are not
provided for in the financial statements.
Consolidated
June 2024
June 2023
Minimum expenditure requirements
$000’s
$000’s
●not later than 12 months
4,437
4,913
●between 12 months and 5 years
12,542
18,136
16,979
23,049
Bank guarantees
Westpac Banking Corporation have provided bank guarantees totalling $398,700 (2023: $548,700) as follows:
•
$398,700 (2023: $398,700) to the State of Queensland - Group’s exploration permits and environmental guarantees; and
•
$nil (2023: $150,000) to the State of NSW - Group’s exploration permits and environmental guarantees.
The bank guarantees are secured by term deposits.
Comet Ridge Limited | Annual Report 2024 65
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 23
Risk management
Overview
The Group’s principal financial instruments comprise receivables, payables, cash, term deposits and financial liabilities at fair value. The
main risks arising from the Group’s financial assets and liabilities are interest rate risk, foreign currency risk, credit risk and liquidity risk.
This note presents information about the Group’s exposure to each of the above risks, its objectives, policies and processes for measuring
and managing risk.
Key risks are monitored and reviewed as circumstances change (e.g. acquisition of new entity or project) and policies are created or revised
as required. The overall objective of the Group’s financial risk management policy is to support the delivery of the Group’s financial targets
whilst protecting future financial security.
Given the nature and size of the business and uncertainty as to the timing and amount of cash inflows and outflows, the Group does not
enter into derivative transactions to mitigate the financial risks. In addition, the Group’s policy is that no trading in financial instruments
shall be undertaken for the purpose of making speculative gains. As the Group’s operations change, the Directors will review this policy.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board reviews
and agrees policies for managing the Group’s financial risks as summarised below.
The Group holds the following financial instruments which are carried at amortised cost unless otherwise stated:
Consolidated
June 2024
June 2023
$000’s
$000’s
16,776
11,651
125
59
399
549
1,572
2,292
18,872
14,551
2,752
1,115
77
187
7,367
7,018
4,250
4,900
3,266
4,591
26,742
25,656
44,454
43,467
Financial Assets
Cash and cash equivalents
Trade and other receivables
Restricted cash
Financial asset at fair value – Santos deferred consideration receivable
Financial Liabilities
Trade and other payables
Lease liabilities
Borrowings
Financial liability at fair value – PURE warrant shares
Financial liability at fair value – APLNG deferred consideration payable
Financial liability at fair value – CleanCo
Interest rate risk
Exposure to interest rate risk arises on cash and term deposits recognised at reporting date whereby a future change in interest rates will
affect future cash flows or the fair value of fixed rate financial instruments. Borrowings are fixed rate borrowings and not exposed to
fluctuations in interest rates.
A forward business cash requirement estimate is made, identifying cash requirements for the following period (generally up to one year)
and interest rate term deposit information is obtained from a variety of banks over a variety of periods (usually one month up to six month
term deposits) accordingly. The funds to invest are then scheduled in an optimised fashion to maximise interest returns whilst preserving
liquidity.
Interest rate sensitivity
A sensitivity of 1% interest rate has been selected as this is considered reasonable given the current market conditions. A 1% movement in
interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis
assumes that all other variables, in particular foreign currency rates, remain constant.
Profit or Loss
Equity
1% increase
1% decrease
1% increase
1% decrease
2024 – Consolidated
$000’s
$000’s
$000’s
$000’s
Cash and cash equivalents and restricted cash
172
(172)
172
(172)
2023 – Consolidated
Cash and cash equivalents and restricted cash
122
(122)
122
(122)
66 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 23
Risk management (continued)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Board’s approach to managing
liquidity is to ensure, as far as possible, that the Group will always have sufficient resources to meet its obligations when due.
Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Group manages liquidity risk by maintaining
adequate reserves and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities. This is based on the undiscounted cash flows of the financial liabilities based on the earliest date on which they are required to
be paid. With respect to the liability to CleanCo, the Group is managing this liquidity risk via an executed Gas Supply Agreement (GSA) with
CleanCo. In the event the final condition precedent is not met, extended or waived, then a cash payment of $20 million escalated by CPI
until the date of payment will be required and has been disclosed in the below table.
The following are the contractual maturity for non-derivative financial assets and liabilities.
<1 year
Between
1 to 3 years
Between
3 to 5 years
Total
Contractual
Cash Flows
Carrying
Amount
Consolidated - 30 June 2024
$000’s
$000’s
$000’s
$000’s
$000’s
Financial Assets
Cash and cash equivalents
16,776
-
-
16,776
16,776
Deferred consideration receivable - Santos
857
858
-
1,715
1,572
17,633
858
-
18,491
18,348
Financial Liabilities
Trade and other payables
(2,752)
-
-
(2,752)
(2,752)
Lease liabilities
(80)
-
-
(80)
(77)
Borrowings
(1,140)
(9,744)
-
(10,884)
(7,367)
Deferred consideration payable – APLNG
(2,000)
(2,000)
-
(4,000)
(3,266)
Financial liability at fair value – CleanCo
(26,742)
-
-
(26,742)
(26,742)
(32,714)
(11,744)
-
(44,458)
(40,204)
Consolidated - 30 June 2023
Financial Assets
Cash and cash equivalents
11,651
-
-
11,651
11,651
Deferred consideration receivable - Santos
857
1,715
-
2,572
2,292
12,508
1,715
-
14,223
13,943
Financial Liabilities
Trade and other payables
(1,115)
-
-
(1,115)
(1,115)
Lease liabilities
(127)
(76)
-
(203)
(187)
Borrowings
(1,200)
(11,500)
-
(12,700)
(7,018)
Deferred consideration payable – APLNG
(2,000)
(4,000)
-
(6,000)
(4,591)
Financial liability at fair value – CleanCo
(25,656)
-
-
(25,656)
(25,656)
(30,098)
(15,576)
-
(45,674)
(38,567)
Foreign exchange risk
As a result of activities overseas, the Group’s Consolidated Statement of Financial Position can be affected by movements in exchange rates.
The Group also has transactional currency exposures. Such exposures arise from transactions denominated in currencies other than the
functional currency of the Group. The Group’s exposure to foreign currency risk primarily arises from the Group’s operations overseas,
namely in New Zealand. The Group currently does not engage in any hedging or derivative transactions to manage foreign currency risk.
The Group’s policy is to generally convert its local currency to NZ dollars at the time of transaction.
Based on financial instruments held at 30 June 2024 and 30 June 2023, had the Australian dollar strengthened/weakened by 10%, there
would be an immaterial impact on the Group’s profit or loss and equity.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations. This arises principally from cash and cash equivalents, restricted cash, and trade and other receivables. The Group exposure
and the credit ratings of its counterparties are continuously monitored by the Board of Directors. The maximum exposure to credit risk at
the reporting date is the carrying amount of the financial assets as summarised in the table above.
Comet Ridge Limited | Annual Report 2024 67
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 23
Risk management (continued)
Credit risk exposures
Trade and other receivables
Trade and other receivables comprise primarily of charges to joint operations. Where possible the Group trades with recognised,
creditworthy third parties. The receivable balances are monitored on an ongoing basis. The Group’s exposure to bad debts is not significant.
At 30 June 2024 $nil, (2023: $nil) of the Group’s receivables were past due. The Group has no other significant concentration of credit risk.
Cash and cash equivalents, restricted cash and term deposits
The Group has a significant concentration of credit risk with respect to cash deposits with banks. AAA rated banks are mostly used and non-
AAA banks are utilised where commercially attractive returns are available.
Capital risk management
When managing capital, management’s objective is to ensure the Group continues as a going concern and to maintain a structure that
ensures the lowest cost of capital available and to ensure adequate capital is available for exploration and evaluation of tenements. In order
to maintain or adjust the capital structure, the Group may seek to issue new shares.
Consistent with others in the industry, the Group monitors capital on the basis of forecast exploration and evaluation expenditure required
to reach a stage which permits a reasonable assessment of the existence or otherwise of an economically recoverable reserve. Total capital
is calculated as ‘equity’ as shown in the Consolidated Statement of Financial Position.
There were no changes in the Group’s approach to capital management during the year. The Group is not subject to externally imposed
capital requirements.
Fair value measurement
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement and for disclosure purposes.
Fair value hierarchy
AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level as determined by the following fair value
measurement hierarchy:
a)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
b)
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
c)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table shows the fair value classification of the Group’s assets and liabilities measured and recognised at fair value at 30 June
2024.
Consolidated
Financial Assets - Level 3 (Note 9)
June 2024
June 2023
Santos deferred consideration receivable
1,572
2,292
1,572
2,292
Balance at the beginning of the year
2,292
-
Initial recognition of financial asset at fair value
-
2,972
Unwinding of discount
137
177
Deferred consideration payment received
(857)
(857)
Balance at the end of the year
1,572
2,292
68 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 23
Risk management (continued)
Financial Liabilities - Level 3 (Note 15)
June 2024
June 2023
$000’s
$000’s
CleanCo financial liability
26,742
25,656
APLNG deferred consideration payable
3,266
4,591
PURE warrant shares
4,250
4,900
34,258
35,147
Balance at the beginning of the year
35,147
36,210
Adjustment to discount rate applied on initial recognition
-
(330)
Unwinding of discount
675
844
Movement in financial liabilities at fair value
436
423
Deferred consideration payment made
(2,000)
(2,000)
Balance at the end of the year
34,258
35,147
Other fair value disclosures
The Directors consider that the carrying amount of trade receivables and payables recorded in the financial statements approximates their
fair values due to their short-term nature.
Note 24
Group structure
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries:
Name of entity
Country of
Incorporation
Class of
Shares
Equity Holding
%
2024
2023
Chartwell Energy Pty Ltd
Australia
Ordinary
100
100
Comet Ridge NZ Pty Ltd
Australia
Ordinary
100
100
Davidson Prospecting Pty Ltd
Australia
Ordinary
100
100
Comet Ridge Mahalo Pty Ltd
Australia
Ordinary
100
100
Comet Ridge Gunnedah Pty Ltd
Australia
Ordinary
100
100
Comet Ridge Galilee Pty Ltd
Australia
Ordinary
100
100
Comet Ridge Mahalo North Pty Ltd
Australia
Ordinary
100
100
Comet Ridge Mahalo East Pty Ltd
Australia
Ordinary
100
100
Comet Ridge Mahalo Far East Pty Ltd
Australia
Ordinary
100
100
Joint arrangements
The Group has interests in the following Joint Arrangements:
2024
2023
ATP 1191 Mahalo1
57.14%
57.14%2
ATP 743 Galilee
70.00%
70.00%
ATP 744 Galilee
70.00%
70.00%
ATP 1015 Galilee
70.00%
70.00%
PEL 427 Gunnedah
59.09%
59.09%
1 includes PLs 1082 and 1083, and PCAs 302, 303 and 304.
2 decreased from 70% to 57.14% in September 2022 on Santos exercising its option to acquire 12.86% interest in the Mahalo Joint Venture Project.
In accordance with AASB 11 Joint Arrangements, the accounting treatment adopted for these joint arrangements depends upon an
assessment of the rights and obligations of the parties to the arrangement that are established in each of the joint operating agreements
(JOAs) or the farm-in agreement as the case may be. The JOA or farm-in agreement sets out the voting rights of the parties to the agreement.
The voting rights determine who has control i.e. the power to direct the operating activities of the joint arrangement.
Based on the analysis of each JOA and farm-in agreement, the Group has classified each of its joint arrangements as a “joint operation”.
As a result, the Group recognises in its financial statements its share of the revenue, expenses, assets and liabilities of each of the joint
operations in which it has an interest.
Comet Ridge Limited | Annual Report 2024 69
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 25
Related party transactions
Parent entity
The legal parent entity is Comet Ridge Limited. Details of controlled entities are set out in Note 24.
Key Management Personnel
There were no transactions with KMP during the year, other than those disclosed in Note 26.
Transactions with controlled entities
Transactions between Comet Ridge Limited and its subsidiaries during the year included:
•
loans advanced to/repayments from subsidiaries; and
•
investments in subsidiaries.
The loans and investments have been impaired as shown in the parent entity disclosures section of this note. The loans to subsidiaries are
interest free, repayable in cash at call and are unsecured.
Loans to subsidiaries and investments in subsidiaries
The parent entity has recorded investments in subsidiaries at cost of $44,252,000 (2023: $44,252,000) less provisions for impairment
$44,081,000 (2023: $44,081,000).
The parent entity has also loaned funds to its subsidiaries of net $57,002,000 (2023: $52,255,000) primarily to undertake exploration
expenditure. The parent entity has impaired the carrying amount of the loans by $22,310,000 (2023: $20,359,000). The impairment of the
investments and loans has been based on the underlying net assets of the subsidiaries.
In future periods, as the underlying exploration and evaluation activities progress on various tenements, and with changes in other market
conditions, the carrying amounts of the investments and loans may need to be reassessed in line with the net asset position of the
subsidiaries or as otherwise appropriate.
Note 26
Key Management Personnel
Details of Key Management Personnel
Key Management Personnel comprise all of the Directors of the Company.
James McKay
Non-executive Chairman
Tor McCaul
Managing Director
Christopher Pieters
Executive Director
Gillian Swaby
Non-executive Director
Martin Riley
Non-executive Director
Shaun Scott
Non-executive Director
Consolidated
June 2024
June 2023
$
$
Short-term employee benefits
913,912
911,652
Post-employment benefits
78,834
74,388
Long-term employment benefits
9,413
16,059
Share-based payments
98,266
105,629
1,100,425
1,107,728
Note 27
Parent entity disclosures
June 2024
June 2023
$000’s
$000’s
Current assets
17,414
12,391
Non-current assets
83,802
79,325
Total assets
101,216
91,716
Current liabilities
20,313
19,307
Non-current liabilities
8,397
8,096
Total liabilities
28,710
27,403
Net assets
72,506
64,313
70 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Note 27
Parent entity disclosures (continued)
Contributed equity
199,444
184,151
Share-based payments’ reserve
4,097
4,086
Accumulated losses
(131,035)
(123,924)
Total equity
72,506
64,313
Loss for the period
7,198
6,570
Other comprehensive income
-
-
Total comprehensive loss
7,198
6,570
Bank guarantees
Bank guarantees are disclosed in Note 22.
Contingent liabilities
Contingent liabilities are disclosed in Note 21.
Parent Entity Guarantee
Comet Ridge Limited has provided a parent company financial guarantee for Comet Ridge Mahalo Pty Ltd (CRM) in favour of Comet Ridge
Mahalo’s potential $20,000,000 liability (indexed at CPI from 2014) to CleanCo.
The guarantee represents a contingent liability of the parent should CRM not be able to settle the obligation if and when it falls due.
Note 28
Post balance date events
(a)
ATP 2072 awarded by Queensland Government
Comet Ridge announced on 22 July 2024 that ATP 2072 was awarded to Comet ridge as 100% owner and operator for an initial term of six
years. This new block is called Mahalo Far East Extension and covers an area of 66 km2 immediately north of the Mahalo East and west of
the Mahalo Far East projects. The southern portion of ATP 2072 sits over the Mahalo Gas Hub high-quality fairway and is expected to be a
source of future production wells for the Mahalo Gas Hub development.
(b)
Environmental Authority for PLA 1128 awarded by Queensland Government
Comet Ridge announced on 6 August 2024 that it was awarded an Environmental Authority (EA) from the Queensland Department of
Environment, Science and Innovation for development activities to be carried out within PLA 1128 (the planned initial development area
of Mahalo North). The scope of the development under the EA includes new production wells, compression and water treatment facilities,
gathering systems and access tracks. Comet Ridge is developing Mahalo North to meet its domestic gas supply agreement with CleanCo
Queensland Limited, a low-emission energy generator, retailer and developer which offers renewable energy from the sun and wind, firmed
with low emission generation to deliver competitive clean energy products.
Comet Ridge Limited | Annual Report 2024 71
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Consolidated Entity Disclosure Statement
As at 30 June 2024
Comet Ridge Limited is required by Australian Accounting Standards to prepare consolidated financial statements in relation to the
company and its controlled entities (the consolidated entity).
In accordance with subsection 295(3A) of the Corporations Act 2001, this consolidated entity disclosure statement provides information
about each entity that was part of the consolidated entity at the end of the financial year.
Name of Entity
Type of entity
Place
or
incorporated
Percentage of
share capital
held (if
applicable)
Australian tax
resident or
foreign tax
resident
Foreign tax
jurisdiction
applicable)
Comet Ridge Limited
Body corporate
Australia
n/a
Australian
n/a
Comet Ridge Mahalo Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Comet Ridge Gunnedah Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Comet Ridge Galilee Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Comet Ridge Mahalo North Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Comet Ridge Mahalo East Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Comet Ridge Mahalo Far East Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Comet Ridge NZ Pty Ltd
Body corporate
Australia
100%
Australian
New Zealand
Chartwell Energy Pty Ltd
Body corporate
Australia
100%
Australian
n/a
Davidson Prospecting Pty Ltd
Body corporate
Australia
100%
Australian
n/a
At the end of the financial year, no entity within the consolidated entity was a trustee of a trust within the consolidated entity, a partner in
a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity.
72 Comet Ridge Limited | Annual Report 2024
formed
(if
Comet Ridge Limited | Annual Report 2024 73
Gas supplies 27% of
Australia’s energy
needs and
represents 14% of
Australia’s export
income.
74 Comet Ridge Limited | Annual Report 2024
Gas will play an
important role in
firming renewable
power generation and
is needed in hard-to-
abate sectors like
manufacturing and
minerals processing
until such time as
alternatives are viable
and can be deployed.
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Directors’ Declaration
The directors declare that:
The directors have been given the declarations by the Managing Director and Chief Financial Officer required in accordance with section
295A of the Corporations Act 2001 for the financial year ending 30 June 2024.
This declaration is made in accordance with a resolution of the Board of Directors.
Comet Ridge Limited | Annual Report 2024
75
1)
In the director’ opinion, the consolidated statements and notes thereto, as set out on pages 42 to 71, are in accordance with the
Corporations Act 2001, including:
(a)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
as stated in Note 2, the consolidated financial statements also comply with International Financial Reporting Standards; and
(c)
giving a true and fair view of the financial position of the Group as at 30 June 2024 and of its performance for the year ended on
that date.
2)
In the directors’ opinion, the consolidated entity disclosure statement required by subsection 295(3A) of the Corporations Act 2001 is
true and correct.
3)
In the directors’ opinion there are reasonable grounds, at the date of this declaration, to believe that the Company will be able to pay
its debts as and when they become due and payable.
Tor McCaul
Managing Director
Brisbane, Queensland, 25 September 2024
Nigel Fischer
Mark Nicholson
Peter Camenzuli
Jason Evans
Kylie Lamprecht
Norman Thurecht
Brett Headrick
Warwick Face
Cole Wilkinson
Simon Chun
Jeremy Jones
Tom Splatt
James Field
Daniel Colwell
Robyn Cooper
Felicity Crimston
Cheryl Mason
Kieran Wallis
Murray Graham
Andrew Robin
Karen Levine
Edward Fletcher
Robert Hughes
Ventura Caso
Tracey Norris
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme approved under Professional Standards
Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney
Level 38, 345 Queen Street
Brisbane, QLD 4000
Postal address
GPO Box 1144
Brisbane, QLD 4001
+61 7 3222 8444
pitcher.com.au
Independent Auditor’s Report to the Members of Comet Ridge Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Comet Ridge Limited (“the Company”) and its controlled entities (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements including material accounting policy information, the consolidated entity disclosure
statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (“the
Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
76 Comet Ridge Limited | Annual Report 2024
Material Uncertainty Related to Going Concern
We draw attention to Note 2(d) in the financial report, which describes that under an agreement with CleanCo
Queensland Limited (CleanCo), contract terms exist whereby a cash payment of approximately $26.7 million
may become payable. In addition, the Group will require additional funding for its ongoing commitments to
continue its normal business operations, including the progression of its Mahalo Gas Hub permits and Galilee
permits.
The ability of the Group to continue as a going concern depends upon a number of matters, including
successfully raising necessary funding through debt, equity, selldown or farm-out of the Group’s tenements to
meet these commitments as they arise. These conditions, along with other matters set forth in Note 2(d),
indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as
a going concern. Our conclusion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matter
How our audit addressed the key audit matter
Carrying value of Exploration and Evaluation assets
Refer to note 11, $100.97 million
Exploration and Evaluation (E&E) assets represent
the Mahalo and Galilee Deeps Joint Ventures (JVs),
Mahalo North, Mahalo East, Mahalo Far East and
the Gunnedah and Galilee Basin tenements.
We considered the carrying value of the E&E assets
to be a key audit matter given the significance of the
E&E asset balance to the financial statements and
judgements regarding future exploration plans in
determining whether the exploration costs should
continue to be capitalised as assets.
The following procedures, amongst others, were
performed in relation to the carrying value of the
E&E assets:
Understood and evaluated the design and
implementation of controls over the E&E assets.
Evaluated the Group’s accounting position
paper on the ability to continue to capitalise
E&E assets for each area of interest.
Agreed the licence expiry date of the respective
tenements to the official tenement
documentation provided by the State
Government Department, to confirm currency of
tenure and the Group’s right to explore.
Assessed the Group’s financial year 2025
budget to determine if exploration expenditure
had been included for the respective tenements
to demonstrate continue exploration activity.
Discussed likely developments and future plans
for the respective tenements with Management.
Evaluated the reasonableness of disclosures
included in the financial report against the
requirements of Australian Accounting
Standards.
Comet Ridge Limited | Annual Report 2024
77
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme
approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the
members of which are separate and independent legal entities.
Key Audit Matter
How our audit addressed the key audit matter
Valuation of CleanCo financial liability
Refer to note 15, $26.74 million
The CleanCo arrangement originated in 2014 and
reflects the Group’s obligation to settle the
acquisition of a 5% interest in the Mahalo Gas
Project.
On 18 September 2023, the Group executed a
seven-year Gas Sales Agreement (GSA) with
CleanCo, subject to various contract conditions
being satisfied. On 15 April 2024, a GSA
amendment letter was entered to extend the
satisfaction dates for the remaining two conditions
to 31 October 2024 and 20 December 2024
respectively.
In estimating the fair value of the financial liability
under the arrangement, the Group have made
judgements including the:
Timing of any cash payments under the
arrangement
Discount rate to be applied
Forecast inflation rates
Given the magnitude of the liability and judgements
made in determining the fair value of the liability, the
complexities of the CleanCo arrangement, and the
significance of the arrangement to the financial
report, we consider the accounting for the CleanCo
arrangement to be a key audit matter.
The following procedures, amongst others, were
performed in relation to the valuation and
presentation of the CleanCo financial liability:
Understood and evaluated the design and
implementation of controls over the CleanCo
financial liability.
Read the relevant terms of the CleanCo
agreements, to develop an understanding of the
arrangement.
Agreed the extension of the GSA negotiating
period to the Notification Notice agreed between
CleanCo and the Group.
Evaluated the reasonableness of the timing of
any potential cash outflow with reference to the
conditions in the agreements.
Evaluated the reasonableness of the forecast
inflation rates over the remaining timeframe of
the arrangement.
Tested the mathematical accuracy of the
calculations of the financial liability through
recalculation.
Evaluated the reasonableness of disclosures
included in the financial report against the
requirements of Australian Accounting
Standards.
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme
approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the
members of which are separate and independent legal entities.
78 Comet Ridge Limited | Annual Report 2024
Key Audit Matter
How our audit addressed the key audit matter
PURE Asset Management Financing Facility,
including the valuation of warrants issued
Refer to note 13 and 15
The Group executed a binding agreement with
PURE Asset Management Pty Ltd (“PURE”) on 9
September 2021, to provide a term loan facility of up
to $10 million.
The agreements contain attached warrants, with the
Group granting PURE 65,909,091 warrant shares,
entitling PURE to 1 ordinary share in the Group for
each warrant, should PURE exercise the warrants
and pay the exercise price. PURE exercised
3,787,879 warrant shares during the year, leaving a
total of 62,121,212 outstanding at balance date.
We considered the accounting for the PURE loan
and warrants to be a key audit matter given the
judgement involved in:
determining whether the warrants are
accounted for as a separate financial
liability or equity instrument to the loan; and
determining the fair value of the warrants
and the loan.
The following procedures, amongst others, were
performed in relation to the PURE Financing Facility
and the valuation of the PURE Warrants:
Understood and evaluated the design and
implementation of controls over the PURE loan
and PURE warrants.
Read the relevant terms of the PURE Financing
Facility and warrant agreements to develop an
understanding.
Assessed whether the PURE warrants should
be accounted for as a financial liability or equity
instrument and recognised separately to the
loan in accordance with Australian Accounting
Standards.
Agreed the number of warrants, exercise price
and relevant terms of the warrants issued to the
PURE warrant agreements.
Agreed the face value of the loan and relevant
terms of the loan to the PURE Financing Facility
Agreement.
Assessed the fair value of the warrants utilising
a binomial option pricing valuation methodology.
Evaluated the reasonableness of disclosures
included in the financial report against the
requirements of Australian Accounting
Standards.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the directors and use our professional judgment to determine the
appropriate action o take.
Comet Ridge Limited | Annual Report 2024
79
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme
approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the
members of which are separate and independent legal entities.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
(c) for such internal control as the directors determine is necessary to enable the preparation of:
(i) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
(ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for
our audit opinion.
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme
approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the
members of which are separate and independent legal entities.
80 Comet Ridge Limited | Annual Report 2024
Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme
approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the
members of which are separate and independent legal entities.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 34 to 38 of the directors’ report for the year
ended 30 June 2024. In our opinion, the Remuneration Report of Comet Ridge Limited, for the year ended 30
June 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
PITCHER PARTNERS
JASON EVANS
Partner
Brisbane, Queensland
25 September 2024
Comet Ridge Limited | Annual Report 2024
81
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Additional Information
The additional information set out below was applicable at 2nd September 2024:
1.
Number of Equity Holders
Ordinary Share Capital
1,107,801,434 fully paid ordinary shares are held by 3,074 individual shareholders.
2.
Voting Rights
In accordance with the Company’s constitution, on a show of hands every shareholder present in person or by a proxy, attorney or
representative of a shareholder has one vote and on a poll every shareholder present in person or by a proxy, attorney or
representative has in respect of fully paid shares, one vote for every share held. No class of option holder has a right to vote, however
the shares issued upon exercise of options will rank pari passu with the then existing issued fully paid ordinary shares.
3.
Distribution of Shareholdings
Holdings
No. of Holders
Units
Percentage
of Issued Capital*
1
-
1,000
193
8,931
0.001%
1,001
-
5,000
407
1,393,077
0.126%
5,001
-
10,000
389
3,127,286
0.282%
10,001
-
100,000
1,229
51,023,672
4.606%
100,001
- maximum
856
1,052,248,468
94.985%
3,074
1,107,801,434
100.000%
∗
Percentages have been rounded to the nearest 1/1000 decimal place.
The numbers of shareholders holding less than a marketable parcel (being 2,942 units or less) were:
337 Holders (323,404 Shares)
4.
Substantial Shareholders
The following information is extracted from the Company’s Register of Substantial Shareholders:
Name
Number of
Shares Held
Percentage
of Issued Capital
Copia Investment Partners Ltd
145,900,000
13.17%
The above shareholding is disclosed pursuant to section 671B (3) of the Corporations Act 2001 but the relevant interests shown do
not necessarily represent the beneficial interest in the share capital of the Company or the parties concerned.
5.
Unquoted Securities
Unlisted Performance Rights:
The Company has 3,890,000 performance rights on issue, issued in accordance with the Employee Performance Share Rights Plan last
approved by shareholders at the Company’s AGM on 24 November 2016. The number of beneficial holders of performance rights
totals 9.
Unlisted Warrant Shares:
The Company has 39,393,939 warrant shares on issue, exercisable at $0.165 per share. These have been issued to PURE Asset
Management Pty Ltd in connection with utilisation of the Tranche 1 loan of $6.5 million. The warrant shares have a term of 48 months
from the utilisation date of the Tranche 1 loan.
The Company has 22,727,273 warrant shares on issue, exercisable at $0.132 per share. These have been issued to PURE Asset
Management Pty Ltd in connection with the utilisation of the Tranche 2 loan of $3.0 million. The Tranche 2 warrant shares have a
term of 48 months from the utilisation date of the Tranche 1 loan drawn down on 17 September 2021.
82 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
6.
The 20 Largest Holders of Ordinary Shares
Number of
Ordinary Fully Paid
Shares Held
Percentage of
Issued Capital
%
1.
CITICORP NOMINEES PTY LIMITED
251,548,922
22.71%
2.
BRAZIL FARMING PTY LTD
24,000,000
2.17%
3.
MCKAY SUPER PTY LTD
20,253,129
1.83%
4.
BRIXIA INVESTMENTS LTD
19,355,501
1.75%
5.
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
18,198,198
1.64%
6.
SIXTH ERRA PTY LTD
18,039,150
1.63%
7.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
16,568,562
1.50%
8.
MR JOHN NAUGHTON
16,100,000
1.45%
9.
GILBY RESOURCES PTY LTD
15,000,000
1.35%
10.
BNP PARIBAS NOMS PTY LTD
13,525,928
1.22%
11.
MICHAEL JOYCE PTY LTD
13,521,660
1.22%
12.
KABILA INVESTMENTS PTY LTD
11,949,587
1.08%
13.
UBS NOMINEES PTY LTD
11,701,753
1.06%
14.
JETAN PTY LTD
11,447,226
1.03%
15.
WATEFORD ATLANTIC PTY LTD
10,673,146
0.96%
16.
BNP PARIBAS NOMS PTY LTD
10,617,962
0.96%
17.
MRS KIRSTY ELLEN MCKAY
10,600,001
0.96%
18.
MR CHRISTOPHER JOHN BLAMEY + MRS ANNE MARGARET BLAMEY
9,206,000
0.83%
19.
NAUGHTON SUPER PTY LTD
8,700,000
0.79%
20.
JAF SUPER PTY LTD
8,500,000
0.77%
TOTAL
519,506,725
46.91%
7.
Restricted Securities
There were no restricted securities issued or held during the reporting period.
8.
Interest in Petroleum Tenements - Authority to Prospect (ATP), Petroleum Lease (PL), Petroleum Commercial Area (PCA),
Petroleum Exploration Lease (PEL) Interests
ATP / PL / PCA / PEL
Location
Interest1
Operator
PL 1082 Mahalo 2
Bowen Basin
57.14%
Santos QNT Pty Ltd
PL 1083 Mahalo 2
Bowen Basin
57.14%
Santos QNT Pty Ltd
PCA 302 Mahalo 2
Bowen Basin
57.14%
Santos QNT Pty Ltd
PCA 303 Mahalo 2
Bowen Basin
57.14%
Santos QNT Pty Ltd
PCA 304 Mahalo 2
Bowen Basin
57.14%
Santos QNT Pty Ltd
ATP 2048
Bowen Basin
100%
Comet Ridge Mahalo North Pty Ltd
ATP 2061
Bowen Basin
100%
Comet Ridge Mahalo East Pty Ltd
ATP 2063
Bowen Basin
100%
Comet Ridge Mahalo Far East Pty Ltd
ATP 743 3
Galilee Basin
70% Conventional
100% CSG
Comet Ridge Limited
ATP 744 3
Galilee Basin
70% Conventional
100% CSG
Comet Ridge Limited
ATP 1015 3
Galilee Basin
70% Conventional
100% CSG
Comet Ridge Limited
PEL 427 4
Gunnedah Basin
100% Conventional
59.09% CSG
Comet Ridge Limited (Conventional)
Santos NSW (Betel) Pty Ltd (CSG)
1
The interest is held either by Comet Ridge Limited or one of its wholly owned subsidiaries.
Comet Ridge Limited | Annual Report 2024
83
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
2
3
4
Part of ATP 1191 Mahalo Permit has been converted to Petroleum Leases (PLs) 1082 and 1083 with the remaining Mahalo JV area covered by Potential Commercial
Areas (PCAs) 302, 303 and 304.
The Authorities to Prospect (ATPs) located in the Galilee Basin have been divided by way of a farm-in to Vintage Energy Limited into the Conventional (Deeps) and
Unconventional (Shallows) joint ventures. The percentages recorded show the interests that Comet Ridge (or a wholly owned subsidiary) holds in these respective
ATPs. The Queensland Government has granted since 30 June 2022 6 PCAs numbered 319 to 324 totalling approximately 4742 km2 for 15 years as well as renewing
the underlying ATPs for a further 12 years.
PEL 427 located in the Gunnedah Basin is divided into Conventional oil and gas equity and CSG Joint Ventures. PEL 427 was renewed in May 2022. The approved
area was reduced to 12 blocks over an area of 891 km2.
84 Comet Ridge Limited | Annual Report 2024
Comet Ridge Limited | Annual Report 2024
85
Corporate Directory
Directors
James McKay – Non-executive Chairman
Tor McCaul – Managing Director
Christopher Pieters – Executive Director
Gillian Swaby – Non-executive Director
Martin Riley – Non-executive Director
Shaun Scott – Non-executive Director
Company Secretary – Stephen Rodgers
Registered Office
Comet Ridge Limited
47 106 092 577
Level 3
410 Queen Street
Brisbane, Queensland, 4000
Telephone: +61 7 3221 3661
Website: www.cometridge.com.au
Email: info@cometridge.com.au
Share Registry
Computershare Investor Services Pty Ltd
Level 1
200 Mary Street
Brisbane, Queensland, 4000
Telephone: +61 7 3237 2100
Facsimile: +61 7 3229 9860
Auditors
Pitcher Partners
Level 38, 345 Queen Street
Brisbane, Queensland, 4000
Telephone: +61 7 3222 8444
Securities Exchange Listing
Australian Securities Exchange Ltd Home
Exchange: Brisbane
ASX Code: COI
Comet Ridge Limited – Annual Report for the Year Ended 30 June 2024
Comet Ridge
Level 3
410 Queen Street
Brisbane QLD 4000
+61 7 3221 3661
www.cometridge.com.au
info@cometridge.com.au
A
T
W
E