COMET RIDGE LIMITED — Capital/Financing Update 2004

Apr 1, 2004

ASX ANNOUNCEMENT - 2 April 2004

ARROW ANNOUNCES MILESTONE START-UP OF TIPTON WEST PILOT

The Directors of Arrow Energy NL are pleased announce the Start-up of the Tipton West Pilot (ATP 683P – Arrow Energy 80%, Comet Ridge 20%).

As of today, 2 wells in the Tipton West Pilot are producing. A further two wells will be brought on stream over the next 3 days. During this early flow period the pilot is designed to produce water in order to dewater the coals to allow later release of adsorbed gas. However, due to the high quality of the Tipton area coals, the pilot wells immediately commenced flowing some gas together with the water. The initial gas production will be used to run the well pumps to avoid the need for imported fuel.

The pilot program is part of an aggressive appraisal and reserves certification program aimed at independent certification of gas reserves (by Netherland, Sewell and Associates Inc) by late June 2004 prior to full development of the field.

Arrow has entered into two MOU's, with ERM Wambo Power Ventures and Ergon Energy, to supply in aggregate of 6.7 PJ per annum of gas for 15 years from the Tipton West project area.

Tipton West is Arrow's second pilot in a multiple pilot program. The first, on Kogan North, has been flowing for over a year and has reached gas rates in excess of 500,000 SCFD. A development decision on Kogan is expected by end June 2004.

Commenting on the Tipton pilot start-up Chief Operating Officer, Nick Davies said:

"This is an historic milestone in the development of Arrow Energy. With the commencement of gas flows from our second pilot we move nearer to proving commerciality of our second production source – with both fields having conditional gas sales MOU's attached to them. As we continue commercial negotiations for other marketing opportunities. Arrow also continues to progress near-term plans for further pilots of other Arrow discovered resources. The Tipton West field will now become the second confirmed source of supply in our strategy to develop multiple supply options and multiple buyers in a rapid appraisal and marketing program for our discoveries in the Surat Basin, Clarence-Moreton Basin and Nagoorin Graben".

JPK Marshall Company Secretary

Arrow Energy NL

ACN 078 521 936 Level 30, Riverside Centre, 123 Eagle Street, Brisbane OLD 4000, Australia PO Box 7109, Riverside Centre, Brisbane QLD 4001, Australia Telephone: 61-7-3839 4766 Facsimile: 61-7-3839-8661 Email: info@arrowenergy.com.au For further information contact:

Nicholas Mather or Stephen Bizzell Phone: (07) 3839 4766 Fax: $(07)$ 3839 8661 E-Mail: info@arrowenergy.com.au Website: www.arrowenergy.com.au

This announcement has been approved by the board of Arrow and the technical information herein has been provided by a consultant (Dr R W Day) with more that twenty five years experience in petroleum exploration.