The spud of the Mira 5 is about 500m east of the recently drilled Mira 4 pilot well and 250km west of Gladstone in central Queensland.

The well is expected to reach a total depth of about 310m.

Mira 5 is the third in an eight-well program for the Mahalo Joint Venture and the third of four pilot wells in the Mira field.

Coals intersected in Comet Ridge’s Mira 4 well at its ATP 337P Mahalo asset are consistent with those intersected in other wells at the field.

Mira 4 intersected 8.7m of coal over four separate closely spaced intervals in the Castor Pollux reservoir.

Comet Ridge has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset to Stanwell Corporation Limited in an agreement announced in September 2011.

The well, which reached a total depth of 310m, is the second in an eight-well program for the Mahalo Joint Venture and also the second of four pilot wells in the Mira field.

Under the terms of that agreement, Stanwell Corporation Limited will fund Comet Ridge's expenditure for the Mahalo field and Mira field pilot schemes.

The agreement also gives Stanwell Corporation an option to purchase half or all of Comet Ridge's equity in the Mahalo block, based on 2P reserves booked.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd 35%, Stanwell Corporation Limited 5% (with an option to increase), Australia Pacific LNG Pty Ltd 30% and Santos QNT Pty Ltd 30%.