COMET RIDGE LIMITED — Capital/Financing Update 2004

Mar 10, 2004

ASX ANNOUNCEMENT - 11 March 2004

DRILLING UPDATE

The Directors of Arrow Energy NL are pleased to provide an update on the Company's current drilling and field operations.

Tipton West Pilot being prepared for Commissioning in late March (ATP 683P - Arrow Energy 80%, Comet Ridge 20%)

Preparation work for the Tipton West pilot project, which is located 25 kilometres south of Dalby, is continuing with the final well now being completed. A work-over rig will arrive on site early next week to run production tubing and pumps in each of the four pilot wells. Work on the evaporation pond (for water management) is also near completion.

The second of three monitoring wells is being spudded this week with the third scheduled to spud early next week. The wells will be converted to production wells during the full project development later

The third and fourth core holes in a four well program will be spudded this weekend. Besides providing valuable geological information as well as gas contents and gas saturations required for reserves definition, these holes will also be used as pressure monitoring stations during the pilot flow period.

It is estimated that the pilot will begin production before the end of March.

The current drilling activities are part of an aggressive appraisal and reserves certification program aimed at independent certification of gas reserves (by Netherland, Sewell and Associates Inc) by mid year prior to full development of the field. An interim review of appraisal progress to date will take place with Netherland, Sewell this week.

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

Boyne River -1 - Arrow Applies for a Petroleum Lease over the Nagoorin Graben

The Boyne River -1 well (ATP 679), a well that encountered thick gassy coals at several intervals, was suspended in late January so that a post completion flow test of the well could be conducted using a smaller work-over rig. Severe wet weather has further delayed access to

the site. A site inspection will take place this week.

Boyne River-1 is located in the Nagoorin Graben and is currently the nearest gas deposit to the industrial city of Gladstone.

Following the success at Boyne River-1, Arrow has applied for a Petroleum Lease which overlies the Nagoorin Graben.

JPK Marshall Company Secretary

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.