(MENAFN - ProactiveInvestors - Australia) Comet Ridge (ASX: COI) shares are soaring in intra-day trade today, with the stock up 9% to 0.31, on volume of over 2.1 million shares.
Comet has not made an announcement today, but yesterday updated the market with news that it had successfully drilled four pilot wells at its Mira field pilot project in ATP 337P in Queensland that have shown consistent coal thickness and good coal productivity.
The drill results come on the back of the Mahalo field pilot drilling in 2012 that demonstrated highly productive coals over a wide area of the block.
The market has liked the Comet story of late, with the shares now a three-bagger since October 2012 - when the stock was trading around the 0.10 level.
Mahalo pilot drilling results from 2012
Drilling results from the 2012 Mahalo pilot and the recently concluded Mira pilot, demonstrate highly productive and continuous coals across a large area of the Mahalo block, and confirm the ingredients required for successful pilot testing and reserves booking are present in both areas of the block.
Comet Ridge has a 35% interest in AP337P Mahalo, having divested a 5% interest in the asset to Stanwell Corporation. As part of the agreement Stanwell will free carry Comet Ridge for all the expenditure for the Mahalo field and Mira field pilot schemes.
It also gives Stanwell an option to purchase half of all of Comet Ridge's equity in the Mahalo block based on 2P reserves booked.
Equity interests in Mahalo are Comet Ridge 35%, Stanwell 5%, AP LNG Ltd 30% and Santos 30%.