>ASX Announcement

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

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Operations Update Florence Project, Colorado, USA

Main Point

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Florence 3d seismic survey 65% complete

The directors of Comet Ridge Limited advise that the 8 square mile three dimensional (3D) seismic survey being acquired over the Florence project in Fremont County, Colorado is approximately 65% complete.

The survey is expected to be completed by the end of the month and will cover a significant part of the old Florence oil field and overlaps a smaller survey shot by the Company's US partners in 2004. The seismic data is expected to provide a critical sub-surface view of fracture patterns that control oil production from the target Pierre and Niobrara Formations leading to the generation of a number of drillable prospects for drilling later in the year.

Background

The Florence oil field was the second oil field discovered in the United States of America with the discovery well drilled in 1862. The field is located approximately 87 miles (140 km) south of Denver and 25 miles (40 km) west of Pueblo (Figure 1). The oil field has produced approximately 15 MMBO in its 144 year history from an area of approximately 25 square miles. Comet Ridge controls approximately 7,500 acres (almost 12 sq miles) over the most prolific part of the field (Figure 2). As is typical of many fractured reservoir oil fields, there are a number of excellent producers with per well recoveries ranging from 100,000 barrels to in excess of 550,000 barrels of oil and a large number of lower recovery wells and dry holes where few or no fractures were penetrated.

The majority of the 15 million barrels of oil produced to date has come from fractured shales in the Pierre Formation at depths of less than 3,000 feet (900 m). The slightly deeper fractured shales of the Niobrara Formation, the same objective the Company is pursuing at its Tow Creek/Bear River project in northwestern Colorado, have been very lightly tested but have proven productive.

Australia

C/- Endeavour Corporate Suite 8, 7 The Esplanade Mt Pleasant, Western Australia 6153 Phone: +61 8 9316 9100 Fax: +61 8 9315 5475

usa

600 17th Street, Suite 600-S Denver, Colorado 80202 Phone: +1 [303] 226.1300 Fax: +1 [303] 226.1301

ABOUT COMET RIDGE

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

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 capitalizing 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%)
$\cdot$ Florence $(39\%)$

AUSTRALIA

Queensland • Mahalo (40%)
· Galilee Basin (100%)
New South Wales
* Gunnedah Basin (20 25 %)

ASX Listed:	19 April 04
Shares on issue:	104 million
Listed options:	14.2 million*
Unlisted options:	$\ldots 8$ million
Top 20: $\ldots$ 44%
Directors: a di sebagai dan di perdanakan di perdanakan di persenaan persenaan di perdanaan di perdanaan di perdanaan di Perdanaan di perdanaan di perdanaan di perdanaan di perdanaan di perdanaan di perdanaan di perdanaan di perdan P	. . 12%

*40 cents expire June 29 2007

GKAYS

Further untested potential exists in deeper conventional targets such as the Muddy Formation. The Muddy was the primary objective of the West Florence 1 well that was recently drilled by US based Mountain Petroleum Corporation, some 2 miles west of Comet Ridge's acreage (figure 2). Casing is reported to have been set at 6,417 feet (1956m) with testing planned for a number of show intervals. The well was located to test a potentially significant gas accumulation (quoted as 100 to 200 BCF) in the Muddy J Sandstone. A further 15 million barrels of oil potential is quoted for the shallower Pierre. Niobrara and Codell Formation reservoirs, the main targets for Comet Ridge's program.

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The advent of 3D seismic, directional drilling techniques and modern downhole logging technologies provides companies like Comet Ridge with a set of tools to apply to the re-development of these prolific mature oil fields. Evidence that such opportunities exist is provided by a vertical well - The Roval Gorge #1 well - drilled on a lease immediately adiacent to Comet Ridge's position at Florence (Figure 2). The well (located using the small 3D seismic survey mentioned above) is consistently producing 100 barrels of oil per day from the Pierre Shale after producing 72,000 barrels over the past two years.

Comet Ridge expects to be in the position to commence drilling on the Florence project later this year.

Yours sincerely.

ANDREW LYDYARD Managing Director Comet Ridge Limited