COMET RIDGE LIMITED — Capital/Financing Update 2004

Nov 15, 2004

16 November 2004

Number of Pages: 3

AUSTRALIAN STOCK EXCHANGE Via Electronic Lodgement

Dear Sir:

Tipton West granted Petroleum Pipeline Licence & Drilling starts on ATP 689P

Comet Ridge Limited is pleased to provide the following operational update for activities in ATP's 683P and 689P in south eastern Queensland.

KEY POINTS:

• Tipton West JV awarded a Petroleum Pipeline Licence.
• Tipton West well 13 gas production rate at 150 mcfd and increasing after being reworked.
• Drilling of two wells to commence imminently on ATP 689P

Tipton West (ATP 683P, Dalby Block)

The Tipton West project in the Dalby Block of ATP 683P (Comet Ridge 20%, Arrow Energy NL (operator) 80%) has been awarded Petroleum Pipeline Licence #102. This licence permits the construction of 147 km of pipeline connecting the Tipton West field with customers at Oakey, Dalby and Kogan. First sales gas from this project is scheduled for January 2006.

At the Tipton West production pilot, one of the three new holes. Tipton West #13 (TWP #13) is producing gas at a flow rate of 150 thousand cubic feet per day (mcfd) after having been cleaned out and the pump serviced. Flow rates are above those measured prior to the well being worked over and are increasing steadily towards the 200 mcfd production rate required to convert part of the certified gas resource into reserves. Once certified reserves have been established, the joint venture partners can move forward with securing binding gas sales contracts and initiate development of the field.

The Operator has recently acquired 50 acres of land at Dalby for the potential siting of power generation facilities to supply power to Country Energy as per Arrow's recently announced Letter of Intent (26 October 2004). Tipton West will supply a portion of the gas consumed by the power plant.

ATP 689P

A drilling rig is now moving to ATP 689P (Arrow 70%, Comet Ridge 30%) to drill two exploration wells, Trapyard 1 and Glen Haven 1, seeking to extend the limits of the Walloon Coal Measures trend to the south. This exploration permit lies immediately to the south of ATP 683 which contains the Tipton West and Meenawarra fields (See Figure 1.)

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

Figure 1. Location of Comet Ridge Limited's Interests in the Walloon Coal Measures Project, South Eastern Queensland