COMET RIDGE LIMITED — Capital/Financing Update 2007

Mar 13, 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

14 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.

Gulf Coast, Texas

McGall 1 well: Flint Prospect, Fort Bend County

(Strike Oil, 25% Working Interest, Operator, Cypress E&P Corporation)

The well was preparing to drill ahead after running a wiper trip at 13,421 feet $(4,092$ metres) measured depth in $8\frac{1}{2}$ inch hole on 14 March 2007(13 March, Texas Time). This section of the hole is being drilled as a slightly deviated well as planned, in order to reach the target zones at optimal locations.

It is planned to run 7 inch casing liner at around 14,200 feet (4,329 metres) prior to drilling on through the primary objectives of the well.

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 has been shut in for a planned pressure buildup test. The data from the test will provide an insight into the productivity of the reservoir. As reported by the Operator yesterday, the flow rate to date has been relatively low which is inconsistent with the data collected during the drilling and logging of the well.

For more information on the Peltier 11-12 well refer to the ASX release made by Comet Ridge (ASX Code: COI) on 13 March 2007(copy attached).

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

COMET RIDGE LIMITED ASX ANNOUNCEMENT 13 MARCH 2007

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

• Production testing continues
• Load oil recovered and 100% new oil now being produced at low rates
• Well shut in for pressure build-up

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, 13 March Perth time) the well is shut in so that the pressure in the well bore and the rate at which the pressure increases can be measured. Analysis of these data will provide an insight to the productivity of the reservoir. Up until the time the well was shut-in last Friday, it had been producing clean, new oil at varying but relatively low rates.

The low production rates are inconsistent with other data and observations made during drilling and logging raising the spectre of near well bore plugging of the fractures. The specialised image logs reveal that the target reservoirs are fractured and that the fractures appear to be open as predicted. 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. Given the results to date and the recognized complexity of fractured reservoirs, the Company and its partners are encouraged to persevere and are evaluating a number of options to improve the well's productivity. The ongoing cost of the testing and the initial remedial options being considered are inexpensive.

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.

Yours sincerely

سنم بسامكين

ANDREW LYDYARD Managing Director

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

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

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