COMET RIDGE LIMITED — Capital/Financing Update 2007

Sep 9, 2007

ASX Announcement ASX Code: STX

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10 September 2007
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The Company Announcement Officer

Strike Oil Limited ABN 59 078 012 745

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Australian Stock Exchange Ltd via electronic lodgement

COLORADO ROCKY MOUNTAINS UPDATE

Our Strengths

Strike Oil announces the following update on the CVU 31-4 sidetrack drilling activities in the Rocky Mountains - Colorado.

Rocky Mountains, Colorado

Tow Creek Project, Coal View Unit 31-4, Routt County (Strike Oil: 37.5% working interest. Operator: Comet Ridge USA Inc.)

The Operator has advised that the Coal View Unit 31-4 sidetrack has been temporarily abandoned due to part of the drill string becoming irretrievably stuck in the well bore above the primary objective of the well.

For more details refer to the attached ASX announcement made by the Operator, Comet Ridge.

Elsewhere in the USA , on Strike’s Rayburn development project in the Texas Gulf Coast, development operations are continuing, building facilities for the planned production testing of the Duncan 1 well later this month and preparing for the development drilling program commencing next month.

• Producer/Explorer with strong cash flow

• Track record of discoveries

• Geographically diverse portfolio

• Highly experienced team

• Strong experienced partners

• Innovative approach to E&P

Yours faithfully

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JIM DURRANT Technical Director - Strike Oil Limited

Strike Oil Limited Level 9, Wesfarmers House 40 The Esplanade Perth WA 6000 Tel: 08 6464 0400 www.strikeoil.com.au

ASX CODE: COI

ABOUT COMET RIDGE

The Company Announcement Officer Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 By Electronic Lodgement

Operations Update – Tow Creek Drilling Highlights

Comet Ridge is an Australian-listed oil and gas explorer transitioning to producer with projects in the USA & Australia

The Company’s strategy is to capture meaningful interests and, via operatorship, control of large acreage positions covering high potential impact oil and gas opportunities, in both mature fields and in proven, but overlooked, basins

• CVU 31-4 side track well temporarily abandoned

• Drilling rig released

Comet Ridge Limited announces that the Coal View Unit 31-4 sidetrack has been temporarily abandoned due to part of the drill string becoming irretrievably stuck in the well bore above the primary objective of the well.

Extended repairs resulting from the repeated mechanical failures of the drive mechanism on the rig created a situation where the drill string was left hanging stationary in the borehole for almost a week. During this time, as a result of the inability to move the drill string and maintain circulation, borehole conditions deteriorated to such an extent that the drill string became irretrievably stuck. The decision to quickly discontinue operations results from experience gained during the winter when a similar situation resulted in an extended and expensive unsuccessful fishing operation.

Comet Ridge is capitalising on its local experience in the USA through development of its Pacific Northwest & Rocky Mountain projects

Comet Ridge is also advancing a number of key projects in Australia

USA Pacific Northwest

• Grays Harbor (COI: 100%)

• Cedar Creek/Vader (40%)

Rocky Mountains

• Tow Creek (37.5%)

• Bear River (33.75%)

The well has been temporarily plugged to allow further side-tracking operations at a later time with another rig. Comet Ridge is pursuing negotiations with the drilling contractor to recover certain costs.

• Florence (39%)

AUSTRALIA

Queensland

• Mahalo (40%)

Strong oil and gas shows recorded over fractured intervals within the Niobrara in both the original well bore and the sidetrack hole remain untested. Comet Ridge and joint venture partner Strike Oil Limited (ASX Code: STX) remain committed to testing the significant oil potential of the Tow Creek anticline but need to assess an appropriate way forward given the obviously elevated operational risks of drilling on the structure.

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• Galilee Basin (100%)

New South Wales

• Gunnedah Basin (20 – 25 %)

ASX Listed: ………………19 April 04 Shares on issue: ………. 104 million Unlisted options: ……….8 million Top 20: ………………….. 44% Directors: …………….… 12%

ANDREW LYDYARD Managing Director