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Comet Ridge ASX Announcement 29 January 2021 December 2020 Quarterly Activities Report Highlights • Comet Ridge is positioning the multi - block Mahalo Gas Hub to provide meaningful gas volumes into the east coast gas market , where southern production is forecast to commence declining . Significant data analysis completed for Mahalo North ( ATP 2048 ) , which is expected to lead initially to a material gas resource booking , followed by conversion to gas reserves from 2021 drilling campaign . • Mahalo North ( ATP 2048 ) drilling program advancing with well locations selected and scouted . • Mahalo Gas Project joint venture discussions progressed during the quarter with pathway for the timely development of the project expected during the 1st half of 2021 . The Mahalo Gas Hub area project funding process ongoing and will be concluded following the finalisation of Mahalo Gas Project development pathway . • R & D tax incentive application for FY20 expenditure submitted towards the end of the quarter , with $ 1.961 million of cash received in January 2021 . East Coast Gas Market Southern Gas Production Decline EnergyQuest's December 2020 quarterly report continues to highlight the gas production supply cliff facing southern Australia as shown in Figure 1 below . Production from offshore Victoria , which supplies Victoria , Tasmania and a substantial share of NSW and South Australian demand , is forecast to decline from around 2023 , however it is entirely possible that decline could occur even sooner than forecast . Otway Basin production is already declining and Cooper Basin production , which is also important for NSW and South Australia , is expected to start declining from 2026 . A compelling east coast gas play Comet Ridge Limited | ABN 47 106 092 577 | ASX : COI Level 3 , 410 Queen Street Brisbane Queensland 4000 GPO Box 798 Brisbane Qld 4001 Phone +61 7 3221 3661 Email : comet@cometridge.com.au cometridge.com.au