COMET RIDGE LIMITED — Interim / Quarterly Report 2009

Apr 29, 2009

Bimonthly Drilling Report

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Sydney, Australia – 30 April, 2009 – Eastern Star Gas Limited (ASX:ESG OTCQX:ESGLY) today announced its bimonthly drilling update on its coal seam gas drilling operations in PEL238, around the township of Narrabri, in Northern New South Wales Australia.

Bibblewindi 19H Dual Lateral Production Well

Spud Date: 8/4/2009

Rig Release Date: 26/4/2009 Permit: PEL238 - ESG 65% interest & Gastar 35% interest. Location: Latitude: 30[o] 39’ 39.06”S Longitude: 149[o] 38’ 49.79”E Rig: Lucas - Mitchell DRS026

Objective:

Bibblewindi 19H is the second of two dual lateral production wells to be drilled as part of the Bibblewindi lateral pilot programme. The programme is aimed at evaluating lateral well designs to optimally develop the Bohena coal seams within the Narrabri CSG Project. This pilot, which incorporates four lateral wells drilled perpendicular to the fracture system and intersecting the six vertical drainage wells, is located proximal to the Bibblewindi 11C corehole, which intersected over 20m of Bohena coal. The pilot is 3.5km to the south of the existing Bibblewindi 9-spot vertical well pilot.

Well Status/Results:

As at this report date, Bibblewindi 19H has successfully completed both laterals by intersecting the Bibblewindi 15, 16 and 17 vertical production wells. A workover rig is on site and is currently completing the first of the three wells. Bibblewindi 15, 16 and 17 should all be on production by the end of next week.

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Eastern Star Gas Limited ABN 29 094 269 780

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Dewhurst 6 Vertical Production Well

Spud Date: 30/4/2009

Rig Release Date:

Permit: PEL238 - ESG 65% interest & Gastar 35% interest.

Location: Latitude: 30[o] 36’ 47.76”S Longitude: 149[o] 45’ 23.08”E Rig: Lucas - Mitchell DRS026

Objective:

Dewhurst 6 is the first of a series of vertical step-out wells to be drilled in the Dewhurst field to continue to appraise the areal extent and quality of this field, and to assist in reserves certification. The well is designed with a completion that provides sufficient flexibility for it to be utilised in the future as a vertical intersection well for a lateral programme, with casing set above the target Bohena coals and then drilled through the coal.

Well Status/Results:

As at this report date, Dewhurst 6 has spudded the conductor hole.

Current Operations:

The rig is currently setting and cementing the conductor prior to drilling surface hole.

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Kurrabooma 1 Corehole

Spud Date: 2/4/2009

Rig Release Date: 20/4/2009

Permit: PEL428 - ESG 40% interest, Orion Petroleum Ltd 20%, Davidson Prospecting Ltd 20% interest & Comet Ridge Ltd 20% interest (post Stage 1 farmin interest). Location: Latitude: 29[o] 31’ 32.81”S Longitude: 149[o] 7’ 1.81”E Rig: McDermott Rig #27

Objective:

Kurrabooma 1 is the second of a 3 corehole farmin programme into Orion Petroleum permits in the Surat – Bowen basins in northern New South Wales. This wildcat exploration well is designed to evaluate the coal seam gas potential of coals seams within the Cretaceous coal section, with a number of other targets currently being assessed for drilling by subsequent wells.

The well is located 70km west of the township of Moree in PEL428.

Well Status/Results:

As at this report, Kurrabooma 1 has reached a total depth of 439m. The well intersected approximately 4.6m of gassy coal within the target Cretaceous coal section. Coal samples have been collected for gas content and isotherm measurements.

Current Operations:

The well was plugged and abandoned as planned. The rig moved from Kurrabooma to Bibblewindi to conduct a plug and abandonment on the Bibblewindi West 1C corehole prior to the commencement of lateral drilling in this area. Following some minor rig repairs, the rig will then move onto Coonarah 9 to assess the coal seam gas potential in this area within both the Black Jack and Maules Creek sections.

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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 and 3P gas reserves of 1,300 Petajoules 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 ) and Babcock & Brown (up to 40 PJ/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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