COMET RIDGE LIMITED — AGM Information 2004

Nov 17, 2004

18^th November 2004

Australian Stock Exchange Ltd Via Electronic Lodgement

Dear Sir

AGM Presentation and Chairman's Address

Please find attached the Chairman's Address and Activities Review to be presented at the Annual General Meeting to be held this afternoon.

Yours faithfully

adyn

Andy Lydyard Managing Director - Comet Ridge Limited

For further information contact:

Andy Lydyard Comet Ridge Limited Ph: (08) 9225 7108 Fx: (08) 9225 6100 Web: www.cometridge.com.au

Tony Dawe Ward Holt Ph: (08) 9221 8722 Mob: 0413 322 110

Level 10, International House 26 St George's Terrace, Perth, Western Australia 6000

Phone: 61 8 9225 7108
Facsimile: 61 8 9225 6100

ACN 106 092 577

COMET RIDGE LIMITED (ABN 47 106 092 577)

CHAIRMAN'S ADDRESS TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS OF COMET RIDGE LIMITED HELD AT THE PRESIDENTS ROOM. CELTIC CLUB 48 ORD STREET, PERTH, WESTERN AUSTRALIA ON THURSDAY 18 NOVEMBER 2004 AT 3.30PM

I am pleased to offer this Chairman's address at what is the Company's first Annual General Meeting. It's been a busy year and your company has achieved much in its short history.

Comet Ridge was formed in August 2003 largely from the coal seam gas assets of Strike Oil. Formation of the company was based on a strong belief that commercially attractive opportunities exist in coal seam gas in eastern Australia particularly in Queensland and northern NSW.

Early in 2004 the Company completed a successful capital raising and was listed on the Australian Stock Exchange on 19 April.

The principal purpose of the initial capital raising was to advance two key projects in Queensland via:-

• appraisal drilling on the Mahalo Project in ATP337P where analysis of the results of coal exploration indicated the possibility of a significant coal seam gas resource; and,
• appraisal and pilot development drilling on the Tipton West area in $\mathbf{w}$ ATP683P.

I would first like to make some comments on progress so far in ATP337P, that is the Mahalo Project area, where the company is earning a 40% interest.

Initial results are encouraging with an interpreted free gas cap having been encountered at Mahalo 1 and indications are that a substantial gas resource exists in the permit. We have a 3 well programme planned to commence in the first quarter of 2005. This timing is later than planned due to a lack of rig availability.

I would now like to turn to the Tipton West Project area in ATP683P.

In the Tipton West project area, where Comet Ridge has interests ranging between 20 and 36.67%, considerable progress has been made in establishing the economic viability of the project. A pilot production scheme has been in operation since March 2004. The objective of the pilot is to dewater the coals and confirm that economically viable gas production rates can be achieved.

Confirmation of commercial production rates will enable Comet Ridge to convert part of the certified net 217 PJ gas resource assessed to exist at Tipton West by independent reserve engineers Netherland and Sewell into proven and probable reserves. Confirmation of economic production and hence reserves will in turn meet a key condition in what are presently conditional gas sales agreements with BP Bulwer Refinery, Ergon Energy and Wambo Power Ventures for the supply of coal seam gas in late 2005 early 2006.

While we are confident that economic production can be realized it is fair to say that progress has been frustratingly slow - largely due to the learning curve involved with understanding the most appropriate completion techniques for these coal sequences and again rig availability.

Success in confirming economic production rates will require the immediate commencement of field development activity to enable the Joint Venture to commence gas sales to its customers by late 2005. The Board is presently considering how best to fund these activities given our expectation of success.

These frustrations at Tipton West have reinforced to the Board the strategic importance of securing interests in quality projects where Comet Ridge can operate in its own right. We also see this as a means to leverage off considerable operational experience we have in the company's management.

The coal seam gas industry is developing rapidly in eastern Australia. This is particularly so in Queensland where coal seam gas presently supplies approximately 25% of that States natural gas. We expect this impact will steadily grow as markets, technology and specialized services further develop. As a consequence we expect there will be exciting opportunities ahead for companies such as Comet Ridge.

While our current focus is on advancing our existing projects towards commercialization, we continue to seek quality growth opportunities that offer you, our shareholders, the potential for superior returns.

Progress to date, is in large part, a reflection of the energy and vision of Mr Andy Lydyard your Managing Director. I take this opportunity, on behalf of the board, to express our appreciation to Andy for his efforts.

Annual General Meeting November 18, 2004 Activities Review

Andy Lydyard - Managing Director

Strategy

Create shareholder value by:

• Identifying and capturing quality coal seam gas projects
• Accelerating the commercialisation process
• Proving up reserves and establishing cash flow
• Providing shareholders with a strategic interest in a currently undervalued, clean burning fuel

80mmm

The CSG Exploration and Commercialisation Process

The CSG Exploration and Commercialisation Process

Walloon Coal Measures Project

Location of Comet Ridge Interests in the Walloon Coal Measures Project in SE Queensland

المحاجة

والمتعاد

QGC's Berwyndale Pilot

The Walloon Coals in an opencut mine

Tipton West Pilot Water Table Draw-down

Area of Tipton West Pilot

Tipton West Project

• Significant certified gas resource
• 3 customers 10.2 PJ pa starting in 2006
• "commercial gas rate" > 200 m cfd from 1 well
• 7 well pilot undergoing production testing
• Initial 4 wells shown to be impacting a large area
• 3 wells added in September to accelerate dewatering and increased gas production
• Pilot is on track to achieving "commercial rate"
• Substantial indicated additional gas demand
• Opportunity to expand & replicate W.

Mahalo Project

• Previously Comet Ridge Project 獼
• Earning 40% in part of ATP 337P 獼
• 2 wells drilled $-$ 獼
• Bandanna Fm coals gas bearing 貜 & permeable
• Significant resource (~500 BCF)
• Target coals @ 200 to 300 metres
• Inferred free gas at Mahalo
• 3 wells planned for 2004/05 獼
• Wells will be <400m
• Partners Origin & Santos (30% each) 鵽

Mahalo Project

Other plays

• Gunnedah Basin
• $-$ Renewed PEL's 428 & 427
• Galilee Basin lengthy award process
• Requires Indigenous Land Use Agreement prior to award

Future Outlook

Project	Iming
ATP 689P drilling (2 wells)	November 2004
Tipton West Reserves	Year end 2004
Tipton West development*	$1st$ half 2005
Mahalo drilling (3 wells)	Q1 2005
Meenawarra $(2 - 3$ wells)	Q2 2005
PEL 427/428 seismic	Q2 2005

* Operator projects 100+ wells

Future Direction

• Maintain efforts on existing projects and upon expanding the asset portfolio of the company
• Focus is on quality operated projects
• Control timing and priorities
• Leverage management's operational capabilities
• Widen search
• Same focus on quality & proximity to market & infrastructure