COMET RIDGE LIMITED — Capital/Financing Update 2007

Jun 5, 2007

ABN 59 078 012 745

Perth, Western Australia 6000

Phone: 61 8 6464 0400 Facsimile: 61 8 6464 0401 Email: strike@strikeoil.com.au www.strikeoit.com.au

6 June 2007

Australian Stock Exchange Ltd Via Electronic Lodgement

OPERATIONS UPDATE

Strike Oil announces the following update on activities in the USA.

Gulf Coast, Texas

Rayburn Prospect, Duncan 1 well, Wharton County

(Strike Oil, 22.8% working interest*. Operator, Cypress E&P Corporation)

The Duncan 1 is being drilled to test the Rayburn Prospect in Wharton County, Texas.

At the time of reporting (5 May 2007, Texas time) the well was drilling ahead in the 8 1/2 inch hole at a depth of 10,405 feet (3,171 metres). Progress during the week was hindered by approximately 80 hours of mechanical downtime while investigation and repairs were made to the rig's top drive hydraulics system.

The shallower objectives are expected to be penetrated during the next week if the current rate of penetration is maintained.

Proposed total depth is 16,500 feet (5,030 metres).

The Rayburn Prospect has potential for 500 billion cubic feet gas in the Wilcox Formation, including the same horizons currently producing at the Mesquite Prospect.

* Strike Oil has negotiated a small reduction in its Working Interest in this well and the area covered by the Rayburn Joint Operating Agreement (JOA) from 25% to 22.8%, subject to required approvals under the JOA. This arrangement provides reimbursement of past costs, including leasing, seismic and the current drilling to the extent of the reduced 2.2% interest. This minor reduction in interest helps cover higher than anticipated costs experienced during recent drilling.

Colorado

Florence Project, Fremont County

(Strike Oil, 39% working interest. Operator, Comet Ridge USA Inc.)

Strike Oil has been advised by Comet Ridge that acquisition of the Florence 3D seismic survey is continuing with approximately 32% of the survey acquired. The survey is expected to be completed by the end of June.

The survey is located approximately 2 miles east of the Mountain Petroleum Corporation's West Florence 1 well which this week was reported to have run and set production casing to test a number of show intervals.

For more information on the Florence 3D seismic survey and the Florence oil field refer to the attached ASX release made by Comet Ridge (ASX Code: COI) on 5 June 2007.

Strike Oil will make weekly Operations reports each Wednesday, unless otherwise warranted, while operations are in progress.

Yours faithfully

JIM DURRANT Technical Director - Strike Oil Limited

Further information:

Strike Oil Limited

Jim Durrant - Technical Director

• T: 08 6464 0400
• E: strike@strikeoil.com.au

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

FLORENCE 3D SEISMIC

MAIN POINTS

• Acquisition of 8 sq mile 3D survey 32% complete
• Competitor well completed for testing of shows encountered during drilling

The directors of Comet Ridge Limited (ASX Code: COI) are pleased to advise that approximately 32% of the 8 square mile three dimensional (3D) seismic survey being acquired over the Florence project in Fremont County, Colorado has been completed.

The survey 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 in the Pierre and Niobrara Formations and will facilitate mapping of virtually undrilled deeper conventional reservoirs.

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. As is typical of many fractured reservoir oil fields, there are a modest number of excellent producers with per well recoveries ranging from 100,000 barrels to in excess of 550,000 barrels of oil and a lot of lower recovery wells and dry holes where few or no fractures were penetrated.

Over 15 million barrels of oil have been produced from the fractured shales in the Pierre Formation at depths of less than 3,000 feet. 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. Further untested potential exists in deeper conventional targets such as the Muddy Formation. The Muddy is 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.

AUSTRALIA Level 9, Wesfarmers House 40 The Esplanade, Perth WA 6000 Phone: 61 8 6464 0499 Fax: 61 8 6464 0498

USA 600 17^th Street, Suite 600-S Denver, Colorado 80202 Phone: +1 (303) 226 1300 $Fax$ +1 (303) 226 1301

Comet Ridge Limited ABN 47 106 092 577 Email: comet@cometridge.com.au Website: www.cometridge.com.au

The advent of 3D seismic, directional drilling techniques and modern petrophysical logging technologies provides companies like Comet Ridge with a set of tools to apply to the redevelopment of these prolific mature oil fields. Evidence that such opportunities exist is provided by a vertical well - The Royal Gorge #1 well - drilled on a lease immediately adjacent 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,

Shydrand

ANDREW LYDYARD Managing Director Comet Ridge Limited

Figure 1 - Location of Florence Project

Figure 2. Location Map showing Comet Ridge leasehold position over the Florence oil field, the planned 3D seismic survey, location of the Federal lease acquired in the May 10 BLM lease sale and the location of the Mountain Petroleum West Florence-1 well.