COMET RIDGE LIMITED — Capital/Financing Update 2009

May 28, 2009

29 MAY 2009

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The Company Announcement Officer Australian Stock Exchange Ltd

via electronic lodgement

FUNDING SECURED FOR SOUTHERN COOPER BASIN COAL SEAM GAS (CSG) EXPLORATION

Strike Oil Limited (ASX: STX) today announced it had secured funding of $2.6 million for the initial phase of exploration of its highly prospective Southern Cooper coal seam gas project through the sale of 5.75 million Comet Ridge Limited shares at a profit of $1.4 million.

Earlier this month Strike Oil announced it had been granted a new Petroleum Exploration Licence, PEL 96 (Strike Oil, 66.7%; Australian Gasfields Limited 33.3%), following the conclusion of a milestone land access agreement with native title holders in the Cooper Basin.

The PEL 96 Licence covers an area of 4,050 square kilometres in Australia’s premier oil and gas region. Initial assessment work in the licence area estimates 8 ‐ 20 trillion cubic feet of prospective coal seam gas resources.

Strike Oil is hoping to commence drilling as soon as regulatory approvals are secured and a drilling rig contracted.

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O U R S T R E N G T H S

• Producer/explorer with strong cash flow

• Portfolio of large scale new energy supply options

• Experienced team

Strike Oil Managing Director, Simon Ashton, commented:

“We regard our recently granted PEL 96 Licence as an excellent opportunity for the Strike Oil to become a significant coal seam gas player.

“Our Comet Ridge shares were sold on a favourable basis which will provide us with the funds to meet our share of the proposed PEL 96 drilling program scheduled for later this year,” he said.

• Track record of discoveries

• Building on success

Yours faithfully

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SIMON ASHTON Managing Director

Further information: Strike Oil Limited

Andrew Bantock ‐ General Manager ‐ Corporate

T: 08 6103 0999

E: strike@strikeoil.com.au

Strike Oil Limited

Level 9, Wesfarmers House 40 The Esplanade, Perth Western Australia 6000

Tel: +61‐8‐6103 0999 Fax: +61‐8‐6103 0990 www.strikeoil.com.au

Strike Oil ‐ Coal Seam Gas Background

Southern Cooper Project

Strike Oil’s Southern Cooper Project is centred on its interest in Petroleum Exploration Licence 96 (PEL 96) which, based on the Company’s interpretation of the vast amount of coal present in the PEL 96 area, has 8‐20 trillion cubic feet (Tcf) of prospective Coal Seam Gas (CSG) resources.

The prospective resources are calculated on the basis of the coal seams intersected in previous petroleum exploration wells drilled within the licence area, and the interpretation of seismic modelling. The estimated levels of gas resources in the coal seams are based on similar coal seams observed elsewhere in Australia.

The project has potential to open up and add CSG as a vast new resource, to Australia’s premier onshore conventional oil and gas production region.

The area being explored in PEL 96 contains the shallowest depth of Permian coal measures in the Cooper Basin.

The area includes individual coal seams interpreted at up to 20 metres thick, with composite coal seam thickness interpreted at up to 80 metres between depths of 1,000 and 2,000 metres, based upon existing oil exploration wells and seismic data.

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Log of coals encountered in Tinga Tingana 1 and Weena 1 petroleum exploration wells, Southern Cooper project (PEL 96).

In addition there is the potential for coal seams shallower than 1,000 metres in unexplored parts of the licence area, and operators north of Cooper Basin are also evaluating potential CSG at depths of more than 2,000 metres.

Although Strike Oil's primary focus in the permit will be to address the CSG potential, the company also has rights within the permit to the underground coal gasification (UCG) resource, which may also be extremely large.

A major attraction of the Cooper Basin area is its substantial gas infrastructure including the Moomba gas production facilities and gas pipelines servicing South Australia, Queensland and New South Wales, with potential access to domestic and LNG markets. Specifically, the Moomba to Adelaide gas pipeline traverses the Southern Cooper Project area.

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Strike Oil Ltd's Southern Cooper Project, located to the south of the Moomba gas production facilities with the Moomba to Adelaide gas pipeline traversing permit PEL 96.

Comet Ridge Shareholding

Strike Oil compiled the original portfolio of CSG exploration prospects held by Comet Ridge in 2000, including the company’s extensive positions in the Bowen and Galilee Basins in Queensland and the Gunnedah Basin in New South Wales.

In 2004 Strike Oil listed these CSG assets on the ASX, forming Comet Ridge. Until recently Strike Oil retained 8.75 million Comet Ridge shares, which has been reduced to a total holding of 3.0 million shares by the sale of 5.75 million shares for a total consideration of $2.6 million and a profit of $1.4 million.