COMET RIDGE LIMITED — Capital/Financing Update 2007

Sep 9, 2007

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

Main Points

• CVU 31-4 side track well temporarily abandoned

• Drilling rig released

Comet Ridge Limited advises 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, expensive and unsuccessful fishing operation.

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.

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%)

• Florence (39%)

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.

AUSTRALIA

Queensland

• Mahalo (40%)

• Galilee Basin (100%)

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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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