COMET RIDGE LIMITED — Capital/Financing Update 2007

Jan 15, 2007

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

HIGHLIGHTS

• Completion of CVU 31-4 delayed due to severe weather
• Peltier 11-12 drilling ahead at 1.833 feet

The directors of Comet Ridge Limited (ASX Code COI) 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 attempt on the Coal View Unit 31-4 has been delayed by weather. The Rockies region is experiencing extremely cold conditions that are expected to extend throughout this week. Temperatures at the Peltier well location were measured at -37° C Monday morning.

The Diamondback Energy Services work over rig remains on standby at the location. Attempts to condition the hole prior to running the perforated casing have been frustrated by equipment repairs and the need to spend extended periods thawing out the rig equipment due to sub zero temperatures. The well bore appears to be in good condition down to 5,409 feet (the deepest depth reached so far).

Cold weather heaters and a hot oil trailer have been ordered for the rig and operations are anticipated to continue early next week. The planned operations next week are to run the tubing to 6,600', circulate the potassium formate out with Niobrara oil and then run a 5-1/2" perforated liner from 4,700' to 6,600'. A down hole electric submersible pump will then be run to the bottom of the well bore and the well will be put on test.

BEAR RIVER (Comet Ridge 33.75% and Operator)

Drilling operations on the Peltier 11-12 commenced on 12 January. As of 6am 15 January 2007 (Denver time) the well was at 1,833 feet.

Based on current progress, the first casing point (9 5/8") of 3,800 feet is expected to be reached by Wednesday. The proposed total depth is 6540 feet.

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.

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

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

سند سلم

ANDREW LYDYARD Managing Director Comet Ridge Limited

For further information contact: Andy Lydyard (USA) Managing Director Phone: +1 (303) 226 1303 Fax: +1 (303) 226 1301 Mobile: +1 (303) 547 4478 Email: andyl@cometridge.com.au

Joanne Ford (Australia) Public Relations Manager Mobile: 0410 633 370 Email: jo@resourcepr.com.au

Figure1 - Location of Peltier 11-12 in relation to mapped fracture trend and offset production