COMET RIDGE LIMITED — Capital/Financing Update 2009

Mar 5, 2009

Moree - 4 Farmin Corehole Spuds

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Farmin Corehole Drilling Underway ‐ Investigating 3,500 PJ Resource Potential

Sydney, Australia – 6 March, 2009 – Eastern Star Gas Limited (ASX:ESG OTCQX:ESGLY) today announced that it is about to commence drilling of the Moree-4 corehole, within Petroleum Exploration Licence 427 (PEL 427).

Mr David Casey, Managing Director of ESG, commented that “the Moree-4 corehole will be spudded over the weekend and is the first of three coreholes to be drilled by ESG to earn interests from Orion Petroleum Limited in Petroleum Exploration Licences 6, 427 and 428. After drilling of the Moree-4 corehole the core-rig will proceed with drilling of a corehole in PEL 428 and later this year, after analysis of data from the recently completed Moree North Seismic Survey, a corehole will also be drilled in PEL 6”.

The Moree-4 corehole is being drilled to confirm the maturity, thickness and permeability of Cretaceous aged coals in the area north of Moree, and to obtain information on the gas content and composition contained within the coals. Mr Casey said “this is a unique opportunity to evaluate the CSG potential of a previously untested NSW play”.

Upon completion of the farmin programme ESG will acquire a 50% interest in the Coal Seam Gas rights of PEL’s 6 and 427 and a 40% interest in the Coal Seam Gas rights of PEL 428. ESG will also have an option to acquire a further 25% interest in the PEL 6 CSG rights by drilling an additional corehole.

Mr Casey advised that “information from the corehole programme, together with other existing well and seismic data, will be used to ascertain whether further exploration activity, potentially including development of a gas production pilot project, is warranted”. Mr Casey said “An internal ESG estimate indicates the Coal Seam Gas prospects within PELs 6, 427 and 428 could contain a high-side prospective gas resource of 3,500 PJ”.

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Participating interests in the Coal Seam Gas rights of PEL 427 are:

• Eastern Star Gas (Operator) - earning 50%

• Orion Petroleum - 25%

• Comet Ridge - 25%

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Eastern Star Gas Limited ABN 29 094 269 780

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About ESG

(ASX:ESG OTC:ESGLY) is focused on exploration, development and production of coal seam gas in Australia.

The Company’s main activity, the Narrabri Coal Seam Gas Project, is located in Petroleum Exploration Licence 238 adjacent to the township of Narrabri in the state of New South Wales Australia. ESG holds a 65.0% interest in the PEL 238 and is the operator. The remaining 35% interest is held by Gastar Exploration Limited (AMEX: GST TSX: YGA). PEL 238 covers 9,100 kms² (2.25 million acres) of the Gunnedah Basin, the most lightly explored portion of the Bowen-Gunnedah-Sydney Basin complex which presently supplies the dominant proportion of Australia’s coal seam gas production. Production testing is underway at two locations (Bibblewindi and Bohena) and, on the basis of the production pilots and the first four coreholes drilled in the Dewhurst area, 2P gas reserves of 336 Petajoules (316 BCF) and 3P gas reserves of 1,300 Petajoules (1225 BCF) were independently certified as at on 30 September 2008.

Further reserves will be generated in 2008/09 in PEL238 through the current corehole programme and the completion of 4 multi-lateral production pilot wells at Bibblewindi and Dewhurst. The in-seam, or horizontal, section of the multi-lateral wells will have a notional length of around 1 km (3,300 feet), and will be drilled perpendicular to the fracture system within the target coal seams to maximise connectivity resulting in many times greater flow rates than can be achieved from vertical, fracturestimulated wells.

Test gas from the production pilots will be connected into ESG’s Wilga Park Power Station which will, be expanded to take production test gas in addition to gas currently supplied from ESG’s Coonarah gas field. MOU’s for the supply of gas from PEL 238 have been signed with Macquarie Generation (up to 500 PJ / 471 BCF) and Babcock & Brown (up to 40 PJ/a / 38 BCF/a).

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This announcement contains forward-looking statements that are subject to risks and uncertainties. These forwardlooking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Company's beliefs, assumptions and expectations of our future performance, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors, including those events and factors described in "Risk Factors" in the prospectus, not all of which are known to the Company. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these statements. The Company will update the information in this press release only to the extent required under applicable securities laws. If a change occurs, the Company's business, financial condition, liquidity and results of operations may vary materially from those expressed in the aforementioned forward-looking statements.

For further information contact:

David Casey Peter Lansom Street Address: Postal Address: Managing Director Exec. Director - Operations Level 7, 51 Pitt Street, GPO Box 4526, Tel: 61 2 9251 5599 Tel: 61 7 3136 1515 Sydney NSW 2000 Sydney NSW 2001 Tel: 61 2 9251 5599 office@easternstar .com.au

www.easternstar.com.au

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ASX : ESG

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Class: American Depository Receipts Ratio: 1ADR=20 ASX Ordinary Shares OTCQX: ESGLY

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