COMET RIDGE LIMITED — Capital/Financing Update 2007

Mar 20, 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

21 March 2007

Australian Stock Exchange Ltd Via Electronic Lodgement

WEEKLY OPERATIONS UPDATE

Strike Oil is pleased to announce the following update on drilling activities in the USA and Australia.

HIGHLIGHTS

• Significant gas shows in the shallower target intervals above the main objectives in McGall 1 well, 200 BCF Flint Prospect, Gulf Coast, Texas.
• First Cooper-Eromanga Basin well, Kewarra 1, SW Queensland to spud around 25^th March 07.

Gulf Coast, Texas

McGall 1 well: Flint Prospect, Fort Bend County (Strike Oil, 25% Working Interest. Operator, Cypress E&P Corporation)

The well is drilling ahead at 14.236 feet (4339 metres) measured depth in 81/2 inch hole on 21 March 2007 (20 March, Texas Time).

Significant gas shows have been recorded while drilling through the shallower target intervals above the main objectives. Drilling has slowed in consequence while gas was circulated out of the mud system. The significance of the gas shows will be further evaluated by wireline logging, prior to setting the planned 7-5/8th inch casing liner at around 14,300 feet (4,359 metres), before drilling into the main objectives.

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

The well is targeting a large gas prospect in the order of 200 billion cubic feet of gas potential in the Wilcox Formation.

Rocky Mountains, Colorado

Peltier 11-12 well: Bear River Prospect, Routt County

(Strike Oil, 33.75% Working Interest. Operator, Comet Ridge Limited)

The well remains shut in for the planned pressure build-up test. The pressure in the well continues to build at a consistent rate, indicating a steady inflow of oil is occurring and confirming that the well is in communication with an oil bearing fracture system. Work has commenced to determine if the fractures interpreted on logs and during drilling have been plugged during completion and testing.

For more information on the Pettier 11-12 well refer to the ASX release made by Comet Ridge (ASX Code: COI) on 20 March 2007(copy attached).

Cooper-Eromanga Basin, Queensland

Strike Oil has exercised its Option to take an undivided 15% interest in Cooper Basin Permit ATP633P in SW Queensland which is operated by Beach Petroleum.

Strike will participate in the Kewarra-1 well scheduled to be drilled, spudding on or about the 25^th March 07.

The Kewarra prospect is defined by the recent Gidgee 3D seismic and is located around 4 km west of the Munro Oilfield and around 1.5 km northeast of the 1989 Gidgee-1 well, which flowed in excess of 1,000 barrels of oil per day. The well has multiple targets including the Hutton and Patchawarra sands and is programmed to drill to 1600 m.

The permit has a significant number of large prospects which were detailed by the Gukithi 2D seismic survey in 2006. The interpretation of this survey is anticipated to provide further drilling locations which will be considered for drilling before the end of this year. The key prospects are around 10 km south and up-dip from the Tickalara Oilfield complex which is produced into the Jackson - Moonie pipeline.

Strike Oil will report its Weekly Operations Updates each Wednesday, unless otherwise warranted, while drilling operations are in progress.

Yours faithfully

SIMON ASHTON Managing Director - Strike Oil Limited

Further information:

Strike Oil Limited Simon Ashton - Managing 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

OPERATIONS UPDATE - PELTIER 11-12 ROUTT COUNTY, COLORADO, USA

MAIN POINTS

• Well shut in for pressure build-up
• Schlumberger conducting reservoir modelling
• Image log specialists re-confirm Niobrara is fractured

The directors of Comet Ridge Limited (ASX Code: COI) provide the following operational update for the Peltier 11-12 well drilled on the Bear River prospect in Routt County, Colorado, USA.

As of report time (3pm, 12 March Denver time – 6am, 19 March Perth time) the well remains shut in for a pressure build-up test. Schlumberger reservoir engineers are working with the Company's technical team to determine if the fractures that were interpreted on the image logs across the Niobrara section in the well bore have been plugged during the drilling and completion process.

The company is working on a plan of action that starts with relatively simple and inexpensive options to enhance productivity from the well bore through to more extensive and costly operations that will require a work-over rig.

The Company's consultant image log specialists have re-confirmed their analysis that the target reservoirs are fractured and that the fractures appear to be open. As previously reported, oil was observed in the drilling mud after penetrating the lower part of the reservoir and oil has been produced during the completion and during the production testing. The pressure in the hole continues to build at a consistent rate indicating a steady inflow of oil is occurring and confirming that the well is in communication with an oil bearing fracture system. It is critical that careful analysis of all of the available data is conducted prior to further action and investment.

Comet Ridge and partner Strike Oil Limited (ASX Code: STX) jointly funded the drilling of the Peltier well. All earning requirements on the Bear River prospect have been completed and both companies now own a 33.75% working interest. The remaining 32.5% interest in the project is held by a number of private US entities.

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USA 600 17th 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

As of the date of this report, regular weekly operational reports on the Peltier well will be discontinued. The Company will keep shareholders fully apprised of progress on an "as warranted" basis.

Yours sincerely

Afrique

ANDREW LYDYARD Managing Director