COMET RIDGE LIMITED — Capital/Financing Update 2007

Jan 18, 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

19 January 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

Mesquite Project, Webernick 5 well

(Strike Oil, 32.3% working interest)

Completion operations are underway on the Webernick 5 well. A small potentially commercial gas zone is interpreted.

Flint Prospect, McGall 1 well

(Strike Oil, 25% working interest)

The drilling rig for the McGall 1 exploration well to be drilled on the Flint Prospect is being moved onto the location and rigging up. A spud date expected within two weeks will be announced soon. The well is targeting a large gas prospect the order of 200 billion cubic feet of gas potential opportunity in the Wilcox Formation, the same horizon to the main producing level at the Mesquite Prospect.

Rocky Mountains, Colorado

Tow Creek Prospect, Coal View Unit 31-4 well

(Strike Oil, 37.5% working interest)

The completion attempt on the Coal-View Unit 31-4 has been delayed due to severe weather. The testing program is evaluating 245 feet (75 metres) of oil and gas shows in the main objective which is interpreted to be moderately to intensely fractured. The fractures provide the storage mechanism and flow paths for the oil and gas. Operations are expected to recommence next Monday subject to weather.

Bear River Prospect, Peltier 11-12 well

(Strike Oil 33.75% working interest)

The Peltier 11-12 well, the second of three "proof of concept" wells on the Tow Creek/Bear River prospects spudded on 12 January 2007. The rig was preparing to run 9 5/8" casing to 3,750 feet (1,143 metres) as of 18 January 2007, Denver Time. The well is targeting up to 500,000 barrels of oil in its own right and will be using the same drilling approach as used to successfully drill the Coal View Unit 31-4 well on the Tow Creek prospect.

Refer to attached more detailed release by Comet Ridge Limited concerning Tow Creek and Bear River operations.

Strike Oil will make weekly Operations reports each Friday, 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
• 08 6464 0400 T:
• E: strike@strikeoil.com.au

GOMET RADIOES AND READ ASX ANNOUNGEMENT COMUNICATION

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

OPERATIONS UPDATE TOW CREEK & BEAR RIVER PROJECTS, ROUTT COUNTY, COLORADO, USA

MAIN POINTS

• Completion of CVU 31-4 to recommence 22 January
• Peltier 11-12 running casing at 3,750 feet

The directors of Comet Ridge Limited (ASX Code COI) are pleased to provide the following operational update for the Tow Creek and Bear River prospects in Routt County, Colorado, USA.

TOW CREEK (Comet Ridge 37.5% and Operator)

The completion of the Coal View Unit 31-4 well is expected to recommence next Monday subject to weather. The Rockies region continues to experience extremely cold weather conditions resulting in a number of drilling and completion rigs in the region being shut down.

Cold weather heaters and a hot oil trailer have been secured and will be on location Monday. The planned operation is to run in to the hole to 6,600', condition the hole (i.e. make sure there are no ledges or tight spots), circulate out the potassium formate drilling mud that is in the hole currently with Niobrara oil and then run a 5-1/2" liner from 4,700' to 6,600'. A down hole electric submersible pump will then be installed at the bottom of the well bore and the well will be put on test.

BEAR RIVER (Comet Ridge 33.75% and Operator)

At the Peltier 11-12 well, as of 3pm January 18^th, Denver time (7am January 19^th, Perth time) the rig was pulling out of the hole in preparation of running 9 5/8" casing to 3,750 feet. Drilling is expected to recommence Saturday. The next part of the hole will be directionally drilled with the angle of the well being built to 40° from vertical. Another string of steel casing will be set at 5,000 feet prior to drilling the objective Niobrara section down to 6,540 feet (see Figure 1).

The Peltier 11-12 is targeting up to 500,000 barrels. As mentioned in previous announcements it is the second of three "Proof of Concept" wells designed to prove up a much larger opportunity base.

ALACEA COMO ESTADO A CALIFACIONAL COMO ESPA

AUSTRALIA Lovei 9, Wesfarmers House 40 The Esplanade, Perth WA 6000 Phone: 61 8 6464 0499 61864640498 Fax:

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

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

Comet Ridge and partner Strike Oil Limited (ASX Code: STX) are funding the drilling of this well 50:50. Following completion of this well all earning requirements on the Tow Creek and Bear River prospects will have been completed.

Yours sincerely

ANDREW LYDYARD Managing Director Comet Ridge Limited

For further information contact:
Andy Lydyard (USA) Andy Lydyard (USA)

Managing Director

Phone: +1 (303) 226 1303

Fax: +1 (303) 226 1301

Mobile: +1 (303) 547 4478

Email: andyl@cometridgeusa.com

Figure 1 - Peltier well design

Diamond Back workover rig on the CVU 31-4 well location