COMET RIDGE LIMITED — Capital/Financing Update 2004

Dec 14, 2004

15 December 2004

Number of Pages: 2

AUSTRALIAN STOCK EXCHANGE Via Electronic Lodgement

TIPTON WEST PARTNERS AWARDED PETROLEUM LEASE

Comet Ridge Limited is pleased to advise that the Queensland Department of Natural Resources and Mines has granted Comet Ridge and Arrow Energy NL a Petroleum Lease for the development of the Tipton West coal seam gas field in south eastern Queensland (Comet Ridge 20%, Arrow 80%).

Petroleum Lease 198 (PL198) covers just less than 260 sq km in the Dalby farmout block of ATP 683 (Figure 1). A Petroleum Lease allows for the production and sale of oil or gas.

Production testing continues at the seven well Tipton West pilot. The joint venture partners are planning to drill another two producing wells on the pilot. These wells are designed to test further completion design modifications and to accelerate water production from the eastern side of the pilot. Overall the pilot is producing just under 300 mcfd and 2800 BWPD.

The objective of the pilot and the new wells is to demonstrate that these wells can be produced at economically viable rates so that US based reserve engineering consultants. Netherland, Sewell & Associates, Inc. can assign certified reserves to the project.

The joint venture has secured conditional gas sales contracts totalling 124 PJ (Ergon Energy 3.2 PJ p.a. for 15 years, ERM Wambo Power 4 PJ p.a. for 15 years and, BP 15 PJ over 5 years) for the Tipton West field with first sales gas from the field expected in early 2006.

Yours faithfully

ANDY LYDYARD Managing Director - Comet Ridge Limited

For further information

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

Figure 1 Location Map Showing Comet Ridge Limited Interests in the Walloon Coal Measures Coal Seam Gas Project, south eastern Queensland and the newly awarded Petroleum Lease 198