COMET RIDGE LIMITED — Interim / Quarterly Report 2008

Apr 29, 2008

Quarterly Activities Report

Comet Ridge Limited | ABN 47 106 092 577

Comet Ridge

Period Ending March 31, 2008 ASX: COI

• I Multiple well permits received and rig under contract for Florence drilling program I Acreage position expanded at Florence

• I Additional interests acquired at Bear River

• I Partner secured for Chehalis Basin - $463,000 cash received I Seismic permitting complete for Grays Harbor I Galilee Basin Native title negotiations progressing I Five drilling permits submitted to Washington Department of Natural Resources (DNR)

INTRODUCTION

This past quarter the Company has made good progress towards advancing its portfolio of projects in the USA with partners being secured for the Chehalis Basin project and drilling permits are now in hand for Florence.

The Company’s efforts to secure additional funding for its aggressive 2008 program are gaining traction.

ROCKIES, USA

Florence

(Fremont County, Colorado – Comet Ridge Operator with 39%) The Company has received drilling permits from the State regulatory agency three wells that are planned for the Florence project. The first drill site location is under construction. A rig has been secured and is expected on location in early May. At this time the program comprises of an initial two wells (with a third contingent well) aimed at testing fractures identified on the 3D seismic the joint venture acquired last year. Additional locations are being permitted.

The Company has expanded its acreage position to include an additional 3,000 acres north of the town of Florence bringing the total gross acreage position to 10,500 acres.

Tow Creek

(Routt County, Colorado – Comet Ridge Operator with 37.5%) In mid March, Comet Ridge announced that it had entered into a letter of intent with Freedom Natural Resources LLC (Freedom) to farm-out some of its interests in the Tow Creek project in return for a free carry through the drilling of a new well at the crest of the large Tow Creek structure. Freedom has recently withdrawn from the transaction. No explanation for the withdrawal has been provided. Comet has already re-contacted a number of other parties that have expressed interest in the project.

Bear River

(Routt County, Colorado – Comet Ridge Operator with 38.75%) Comet Ridge recently acquired an additional 5% interest in the Bear River prospect for a nominal cash payment.

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Figure 1. Location Map, Florence Project, Fremont County, CO

COMET RIDGE OPERATIONS & PROJECTS

Comet Ridge is an Australian-listed oil and gas explorer transitioning to producer with projects in Australia and USA.

The Company’s strategy is to control large acreage positions covering oil and gas opportunities in mature fields and in proven, but overlooked basins. As much as possible, it operates these projects in order to directly control desired outcomes.

USA Pacific NW | Grays Harbor (100%); Chehalis Basin (10%) USA Rocky Mountains | Florence (39%); Tow Creek (37.5%); Bear River (33.75%) AUSTRALIA Queensland | Mahalo (40%); Galilee Basin (100%)

AUSTRALIA New South Wales | Gunnedah Basin (60-70%)

Comet Ridge Limited |

E-mail: comet@cometridge.com.au Website: www.cometridge.com.au USA Phone: 1-303-226-1300

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PACIFIC NORTHWEST, USA

Grays Harbor

(Washington - Comet Ridge via St Helens, Operator with 100%) Seismic permits for the planned 2D and 3D surveys at Grays Harbor are in hand. These programs are now expected to be shot later in the year. The Company is also evaluating the potential application of a new high resolution gravity survey for a larger area than that covered by the two planned seismic surveys.

Five drilling permits have been submitted to the Washington Department of Natural Resources. Wellsite inspections for environmental issues have been completed. Air discharge permits will be submitted this month.

Efforts to secure an industry or financial partner for this exciting high potential project are progressing.

Vader/Cedar Creek

(Chehalis Basin, Washington - Comet Ridge via St Helens 10%) In early February, Comet Ridge announced that its wholly owned subsidiary St. Helens Energy LLC, had secured an industry partners for the Chehalis project in southern Washington. The transaction comprised of an upfront cash payment of $463,000 and a free carry through 5 wells plus an assignment of 10% working interest in acreage controlled by the farminees, Oklaco Holding LLC (Oklaco) and Citrus Energy LLC. St. Helens retains a 10% interest in approximately 140,000 acres in the combined project area.

Oklaco and its partners intend to drill a number of horizontal holes into coal beds that underlie the region in an effort to prove up a significant gas resource. Due to tight rig availability and increased drilling activity in the Pacific Northwest, drilling is now expected in the second half of the year.

AUSTRALIAN ACTIVITIES

Over the past year, a series of announcements by a number of coal seam gas developers in Queensland concerning the development of potential LNG facilities at Gladstone, plus the already strengthening gas prices in Eastern Australia,

Mahalo, Northern ATP 337P

(QLD - Comet Ridge 40%, Non Operator)

A recently completed technical 3rd party technical review confirms the presence of a potentially significant gas resource at Mahalo. The Operator has not proposed any activity in the short term.

PEL 427 & PEL 428

(Gunnedah Basin, NSW – Comet Ridge 70% & 60%)

No material change from last report. Comet Ridge is to be free carried by Orion Petroleum Limited (ASX Code: OIP) through a well on each permit this year.

NEXT QUARTER’S ACTIVITIES

• I Drill a minimum of two wells and permit additional locations for Florence

• I Secure industry or capital partner for Grays Harbor

• I Exercise lease option at Grays Harbor

• I Prepare for seismic acquisition at Grays Harbor

• I Finalize well permitting

• I Facilitate drilling on Tow Creek and Bear River

• I Facilitate drilling at Chehalis

• I Complete Right to Negotiate process on Galilee Basin permits

The Company is planning for a high level of operational activity in the next twelve months. The activity as planned will require additional capital resources. To this end the Company has extended its relationship with Plexus Capital, a Denver based financial advisory firm, to assist with raising US sourced project capital. In addition the Company is expending significant efforts towards securing industry partners for its various projects.

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Andrew Lydyard, Managing Director Comet Ridge Limited

The company retains its interests in the Mahalo project, in two large permits in the Galilee Basin and in two permits in the Gunnedah Basin in northern New South Wales.

ATP’s 743 and 744P

(Galilee Basin, QLD - Comet Ridge 100%)

Negotiations with our Native Title claimants are ongoing. Solid progress is being made and the Company anticipates that acceptable agreements will be reached in the coming months. Once the Right to Negotiate process has been completed Comet Ridge will apply for the permits to be granted following which it will initiate exploration activities.

AUSTRALIA C/- Endeavor Corporate Suite 8, 7 The Esplanade Mt Pleasant, West Australia 6153 Phone: +61 8 9316 9100 Fax: +61 8 9315 5475

600 17th StreetSuite 800-SDenver, Colorado 80202 USAPhone: +1 (303) 226.1300Fax: +1 (303) 226.1301UNITED STATES	ASX CODE: COI
	ASX Listed:19 April 04Shares on Issue:105 millionUnlisted Options:10.25 millionTop 20:44%Directors:12%

Comet Ridge Limited |

E-mail: comet@cometridge.com.au Website: www.cometridge.com.au USA Phone: 1-303-226-1300