COMET RIDGE LIMITED — Interim / Quarterly Report 2025

Mar 12, 2025

Comet Ridge

CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

Comet Ridge Ltd ABN: 47 106 092 577

Contents	Page
Directors' Report	2
Auditor's Independence Declaration	10
Consolidated Statement of Profit or Loss and Other Comprehensive Income	11
Consolidated Statement of Financial Position	12
Consolidated Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14
Notes to the Consolidated Financial Statements	15
Directors' Declaration	25
Independent Auditor's Review Report	26

Corporate Directory

Directors

Registered Office

James McKay Non-executive Chairman Level 12 Tor McCaul Managing Director 410 Queen Street Gillian Swaby Non-executive Director Brisbane Queensland 4000 Christopher Pieters Executive Director Telephone: +61 7 3221 3661 Martin Riley Non-executive Director Website: www.cometridge.com.au Shaun Scott Non- Executive Director Email: info@cometridge.com.au

Company Secretary

Stephen Rodgers

Share Registry

Computershare Registry Services Pty Ltd Level 1 200 Mary Street Brisbane Queensland 4000 Telephone: +61 7 3237 2100 Facsimile: +61 7 3229 9860

Securities Exchange Listing

Australian Securities Exchange Ltd Home Exchange: Brisbane ASX Code: COI

Auditors

Pitcher Partners Level 38, 345 Queen Street Brisbane QLD 4000 Telephone: +61 7 3222 8444

Page | 1

COMET RIDGE LIMITED DIRECTORS’ REPORT

The Directors present their report on the consolidated group ("the Group") consisting of Comet Ridge Limited (“Comet Ridge” or “Company”) and the entities it controlled at the end of, or during, the half-year ended 31 December 2024.

DIRECTORS

The names of the Directors who held office at any time during the half-year and up to the date of this report are:

James McKay	Non-executive Chairman
Tor McCaul	Managing Director
Gillian Swaby	Non-executive Director
Christopher Pieters	Executive Director
Martin Riley	Non-executive Director
Shaun Scott	Non-executive Director

All Directors have been in office since the start of the half-year to the date of this report.

PRINCIPAL ACTIVITIES

The principal activities of the Group during the half-year were to carry out exploration, appraisal and development activities for natural gas. The Group has permit interests and exploration, evaluation and development activities in eastern Australia.

There have been no significant changes in the nature of the Group's principal activities during the half-year.

REVIEW OF OPERATIONS AND RESULTS

The comprehensive loss for the half-year to 31 December 2024 after providing for income tax amounted to $1,203,000 (December 2023: loss $5,745,000). The decreased loss was predominantly due to non-cash movements of financial liabilities at fair value.

OPERATING ACTIVITIES

Highlights

• Mahalo JV Operator approved commencement of Front End Engineering Design (FEED) on the gas production and processing components of the project (Upstream FEED) in November 2024.

• Mahalo JV participants progressed commercial discussions with Jemena regarding FEED on the Mahalo Gas Hub .

• pipeline connection (Pipeline FEED)

• Mahalo North progressing environmental approvals:

• Environmental Authority (EA) granted by the Queensland Department of Environment, Science and Innovation in August 2024 for the initial development area within PL application 1128.

• Referral under the EPBC Act remains under assessment by the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW).

• Mahalo East potential confirmed with a pilot test in the north-east of the high-quality CSG fairway:

  • Pilot drilling completed in the half-year, comprising a vertical (Mahalo East 1) and lateral well (Mahalo East 2), funded primarily from a $5,000,000 Queensland Government grant.

  • Pilot testing commenced in January 2025 with gas pressure increasing in the well annulus since mid-February and initial gas flows recorded through the production facilities. Core results confirm gas content from the coal better than anticipated.

• Mahalo Gas Hub position increased with the award of a new block (ATP 2072 - called Mahalo Far East Extension) by the Queensland Government, covering 66 km[2] and located within the high-quality CSG fairway in the northeast.

• Dataroom process is ongoing to assess project funding options for Comet Ridge’s share of capital costs for the Mahalo North and Mahalo Joint Venture gas developments.

• Cash position at the end of the half year was $19,256,000, following completion of a $12,028,000 placement (before costs) in December 2024.

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

Development activities

During the half-year, Comet Ridge continued to prioritise its activities on the development of its Mahalo Gas Hub assets in the Bowen Basin (Central Queensland) to provide significant short to medium term gas supplies that are vital for Australia’s east coast energy needs.

Mahalo Gas Hub overview

Comet Ridge has established a significant coal seam gas asset position (see Figure 1) over a very large footprint in the Mahalo Gas Hub area, comprising:

• Mahalo Joint Venture Project (PLs 1082 and 1083; PCAs 302, 303 and 304) – Comet Ridge 57.14% equity interest (Santos 42.86% and Operator);

• Mahalo North (ATP 2048, divided into PLAs 1128 and 1132 which are being progressed) – Comet Ridge 100% equity interest and Operator;

• Mahalo East (ATP 2061) – Comet Ridge 100% equity interest and Operator;

• Mahalo Far East (ATP 2063) – Comet Ridge 100% equity interest and Operator; and

• Mahalo Far East Extension (ATP 2072) – Comet Ridge 100% equity interest and Operator.

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Figure 1: Mahalo Gas Hub assets (Mahalo Joint Venture in grey and Comet Ridge 100% assets in orange)

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

The Mahalo Gas Hub area is close to existing pipeline infrastructure and the main natural gas demand and hub centres in Queensland, with Gladstone to the east and Wallumbilla to the south. There is a lack of material, green-fields developable gas on the east coast to help support a market that is forecast to continue to be structurally short due to the decline of southern offshore fields, pipeline constraints and ongoing demand for gas for manufacturing and a very large power generation requirement to support renewables.

Comet Ridge’s share of 2P Gas Reserves (2P) and 2C Contingent Gas Resources (2C) at the Mahalo Gas Hub is currently a very material 406 Petajoules (see table below).

Gas Reserves and Resources with a clear pathway to development are keenly sought after in eastern Australia as a valuable feed source for use in domestic manufacturing and mining, power generation and for export as LNG to reduce emissions in a number of Asian countries. Comet Ridge has contracted only 6% of its certified 2P+2C Gas Reserves and Resources, leaving a very material position to be contracted on favourable terms or to provide for project funding via farmout, selldown or prepayment arrangements.

Mahalo Gas Hub permits COI Interest Net Reserves (PJ) Net Contngent Resources (PJ) Totals (COI net share)	Mahalo Gas Hub permits COI Interest Net Reserves (PJ) Net Contngent Resources (PJ) Totals (COI net share)
% 1P 2P 3P	1C 2C 3C 2P+2C 3P+3C
Mahalo JV project (PL 1082, 1083) (PCA 302, 303, 304) 57.14 - 152 262 109 180 294 332 556
Mahalo North
(PLA 1128, PLA 1132, ATP 2048) 100 12 43 149 - - - 43 149
Mahalo East 100 - - -	8 31 122 31 122
(ATP 2061)
Mahalo Far East (ATP 2063) 100 - - - - - - - -
Mahalo Far East Ext. 100 - - -	- - - - -
(ATP 2072)
Totals 12 195 411	117 211 416 406 827

Mahalo Joint Venture Project (PLs 1082 and 1083; PCAs 302, 303 and 304) undertaking FEED as precursor to an investment decision

The Mahalo Joint Venture Project is well positioned to commence development having key environmental and permitting milestones in place and recently finalised development plans during the half year. Key development milestones are noted below:

• Queensland and Federal environmental approvals in place for upstream development;

• Two Petroleum Leases (PL) are previously awarded;

• Select phase completed by the Operator during the half year;

• Approval by the Mahalo JV participants to commence upstream FEED phase in November 2024;

• Progressed commercial discussions with Jemena regarding commencement of FEED on the Mahalo Gas Hub 10-inch diameter high pressure gas Pipeline (MGHP).

Comet Ridge’s share of the independently certified Gas Reserves and Contingent Resources for the Mahalo Joint Venture Project are set out in the table below.

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

		Gas Reserves (PJ)		Contingent Gas Resources (PJ)	Contingent Gas Resources (PJ)	Contingent Gas Resources (PJ)
Mahalo Joint Venture Project	1P	2P	3P	1C	2C	3C
Comet Ridge – 57.14% interest	-	152	262	109	180	294

Notes:

• 1P Reserves = Proved Reserves; 2P Reserves = Proved + Probable Reserves; 3P Reserves = Proved + Probable + Possible Reserves.

• Refer to Comet Ridge’s ASX announcement dated 26 September 2022 for additional information on this independent Reserves certification required by ASX Listing Rules.

• Gas Reserves stated in the table above assumed no fuel or shrinkage losses as production activities, such as wellsite pumping, compression and water treatment, for the Reserves calculation purposes are assumed to be powered using electricity from the local grid and have been calculated at the wellhead (which is the reference point for the purposes of Listing Rule 5.26.5).

During the half-year, the Operator completed the Concept Select (‘Select’) phase of the project. The initial development plan derived from the Select phase comprises:

• Initial plant compression capacity of 50 TJ/d;

• Phase 1 and 2 well design and locations;

• Wellpad civils, equipment and artificial lift infrastructure;

• Gas, water and power field infrastructure;

• Compression facility, gas dehydration, metering, flare and balance of plant;

• Water treatment facilities; and

• • Camp facilities to support drilling and construction activities.

Upon completion of Select phase, the Mahalo JV participants approved the commencement of the Define phase (Upstream FEED) for the Mahalo JV Project in November 2024. It is expected the Upstream FEED will be undertaken during 2025 with an investment decision to commence construction to follow thereafter.

During the last quarter of 2024 and the start of 2025, the Mahalo JV participants have been negotiating an offer by Jemena to undertake FEED on a new Mahalo Gas Hub pipeline to connect the project to Jemena’s Queensland Gas Pipeline and the GLNG transmission pipeline (see Figure 1 above). The Mahalo pipeline is planned to be a new high pressure 10-inch diameter pipeline to be constructed by Jemena on a build, own and operate basis. This will remove the capital cost of the pipeline from the Mahalo Joint Venture development capex and be replaced with an operating cost (tariff) once gas production commences.

Combining all Mahalo Hub gas into one large diameter pipeline provides economies of scale for the transportation of natural gas to the existing connection points for both domestic gas and LNG markets.

Mahalo North (PLAs 1128 and 1132; ATP 2048) progressing towards development with permitting and environmental applications

Comet Ridge progressed the Mahalo North Project towards the development phase in the second half of 2023 with applications submitted for an initial Petroleum Lease (PLA 1128) with the Queensland Department of Resources, an Environmental Application submitted to the Queensland Department of Environment, Science and Innovation (DESI) and a referral submitted to the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Prior to these development applications, Sproule Incorporated, a global energy consulting and advisory firm, provided independent certification of Gas Reserves for the Mahalo North Project (ATP 2048) at 31 October 2022 with a further upgrade to 3P Reserves certified at 30 November 2023.

		Independently Certified Gas Reserves (PJ)	Independently Certified Gas Reserves (PJ)
30 November 2023	1P	2P	3P
Mahalo North (ATP 2048) – 100% equity	12	43	149
interest

Notes:

• 1P Reserves = Proved Reserves; 2P Reserves = Proved + Probable Reserves; 3P Reserves = Proved + Probable + Possible Reserves.

• Refer to Comet Ridge’s ASX announcements dated 2 November 2022 and 20 December 2023 for additional information on these independent Reserves certifications required by ASX Listing Rules.

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

• Gas Reserves stated in the table above assumed no fuel or shrinkage losses as production activities, such as wellsite pumping, compression and water treatment, for the Reserves calculation purposes are assumed to be powered using electricity from the local grid and have been calculated at the wellhead (which is the reference point for the purposes of Listing Rule 5.26.5).

• 1P Gas Reserves for Mahalo North have been included in this Reserves certification on the basis that a development decision by Comet Ridge (as 100% owner and operator of the project) is planned as soon as transport arrangements and Petroleum Lease applications are concluded.

The State Environmental Approval (EA) was granted to Comet Ridge by DESI for PLA 1128 during the current half year (in August 2024). In relation to the Federal approval under the EPBC Act, Comet Ridge finalised its response to DCCEEW’s detailed information request towards the end of the half year. This required Comet Ridge to undertake additional field work relating to groundwater dependent ecosystems (GDE) to support its original submission submitted in October 2023, including:

• drilling five groundwater monitoring bores and monthly sampling of water chemistry and standing water levels; and

• field verification by a GDE expert of twenty sites with ground auger, and leaf and twig sampling for isotopic analysis of up to five areas within the twenty sites.

Comet Ridge has also undertaken FEED activities for the planned gas development within PLA 1128, which will be finalised concurrent with EPBC approval and award of the Petroleum Lease.

Mahalo East (ATP 2061) potential on the high-quality fairway being confirmed via pilot production testing

Mahalo East is part of the Mahalo Gas Hub Area and is a natural northeast geologic extension of the gas accumulation in the Bandanna Formation coals of the Mahalo Joint Venture and Mahalo North Gas Project areas. It has very similar geological characteristics to the Mahalo Joint Venture Project area, with the geological model confirmed by seismic data and many coal exploration bore wireline logs, as well as core and gas desorption data. Initial indications from core data shows that gas contents may be slightly higher in the eastern side of the Mahalo Hub area.

Sproule Incorporated provided the following independent certification of Contingent Gas Resources for the Mahalo East Project (ATP 2061) at 19 December 2022.

	Independently Certified Contingent Gas Resources (PJ)	Independently Certified Contingent Gas Resources (PJ)	Independently Certified Contingent Gas Resources (PJ)
19 December 2022	1C	2C	3C
Mahalo East (ATP 2061) – 100% equity	8	31	122
interest

Notes:

• 1C = Low estimate of Contingent Resources; 2C = Best estimate of Contingent Resources; 3C = High Estimate of Contingent Resources.

• Refer to Comet Ridge’s ASX announcement dated 19 December 2022 for additional information on this independent Reserves certification required by ASX Listing Rules.

• There are no estimated Petroleum Reserves or Prospective Resources recorded (Listing Rule 5.25.4).

• Gas Reserves stated in the table above assumed no fuel or shrinkage losses as production activities, such as wellsite pumping, compression and water treatment, for the Reserves calculation purposes are assumed to be powered using electricity from the local grid and have been calculated at the wellhead (which is the reference point for the purposes of Listing Rule 5.26.5).

This material volume of Contingent Gas Resources (2C = 31 PJ & 3C = 122 PJ) will underpin further appraisal investment in Mahalo East within the high productivity fairway of the Mahalo Gas Hub (see Figure 2 below) with the commencement of a pilot scheme during the half year.

The pilot well drilling and testing program is primarily funded from a $5 million grant under the Queensland Government Frontier Gas Exploration Grants Program. The pilot comprises a vertical production well (Mahalo East 1) and a lateral well (Mahalo East 2), similar in design to Comet Ridge’s successful Mahalo North pilot.

Drilling commenced in October 2024 with the Mahalo East 1 vertical well reaching a total depth of 362 metres, intersecting 7.2 metres of net coal across the target coal seams. This well was drilled to obtain confirmatory coal reservoir data in the northeast section of the highquality fairway and 79.3 metres of core was cut from above the top coal right through the coal reservoir section. As expected, gas was observed bubbling from core as the core samples arrived at surface and were immediately placed in sealed containers for lab measurements and analysis, which will be concluded in March 2025.

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

Ongoing analysis of the Mahalo East 1 data indicates coal depth and seam thickness are in line with Comet Ridge’s extensive geological model, with better than modelled permeability, particularly in the lower two seams.

The Mahalo East 2 lateral well drilling was completed in November 2024. The lateral well successfully intercepted the Mahalo East 1 vertical well and 1338 metres of coal within the target Aries seam. A production liner was run in two lateral well branches within the Aries seam. Prior to the end of the half year, a completion rig installed production tubing and a downhole progressive cavity pump (PCP) into Mahalo East 1 for lifting water out of the vertical well. The production separator, flare and metering skid were then moved across from the Mahalo North pilot area and installed at the Mahalo East 1 well. Also installed was a temporary lined ring tank to collect and manage produced water.

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Figure 2: High productivity fairway within the Mahalo Gas Hub area (Mahalo Joint Venture in grey and Comet Ridge 100% assets in orange)

The pilot production scheme commenced dewatering in January 2025 and is expected to be online for a number of months to enable water and gas production rates to be measured for subsequent Reserves certification. Initial gas flow was achieved after only five and a half weeks of dewatering, significantly ahead of expectations. Final gas content analysis of the extensive core taken from the Mahalo East 1 vertical well has recently been received and it reveals that gas content across the four coal seams is higher than pre-drilling estimates.

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

Galilee Basin (ATP 743, 744 and 1015) permits have long-term tenure

Comet Ridge was awarded six Potential Commercial Areas (PCA), numbered PCA 319 to 324 (see Figure 3 below), by the Queensland Department of Resources (Department) for a term of 15 years ending September 2037. The underlying permits, ATPs 743, 744 and 1015, have also been renewed for a further term of 12 years, ending 3 September 2033, 31 October 2033 and 30 November 2034 respectively.

The Galilee Basin permits contain two play types:

• A sandstone or “Deeps” project comprising a joint venture between Comet Ridge (70% equity interest and Operator) and Vintage Energy Limited (30% equity interest – ASX:VEN) centred from the Albany Structure and further south onto the Tomahawk Structure across ATPs 744 and 1015; and

• A coal seam gas or “Shallows” project held 100% by Comet Ridge and focused on the Gunn CSG Project Area.

With Galilee Basin tenure now secured for the long-term, Comet Ridge is working through the next phase of appraisal with its joint venture partner in the Deeps, Vintage Energy. Comet Ridge and Vintage Energy have agreed a desk top work program focused on several studies to extend technical knowledge on charge (source & migration), reservoir, seal and trap.

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Figure 3 – Galilee permits showing the recently awarded PCAs within permits ATP 743, ATP 744 and ATP 1015

People, environment and community

In respect to safety of people, Comet Ridge has undertaken all of the Company’s activities during the half-year, incident and accident free. Our strong corporate and team focus on health, safety, environment, security and indigenous outcomes continued through executive staff site visits, and via our formal Risk Committee processes. This includes close supervision and support of all contractor activities.

Comet Ridge continued its commitment to high standards of environmental performance during the half-year, with no incidents occurring or reported. Over the past 18 months, the Company has prepared very detailed and high-quality application submissions and responses to support environmental approval applications for PLA 1128 to be granted at Mahalo North. Additional environmental studies (both field and desktop) were undertaken to broaden existing and previous studies. Comet Ridge has acquired extensive knowledge of the receiving environment in Mahalo North. This was reflected in Comet Ridge being granted an Environmental Authority (EA) during the half-year by the Queensland Government for Mahalo North PLA 1128 development area. A Petroleum Survey License (PSL) EA was also obtained to allow preliminary assessment to commence on the feasibility of a proposed export pipeline to the Arcturus Plant west of Mahalo North. Comet Ridge continues to work through the requirements for Federal EPBC approval.

In regard to landholder engagement, a new landholder conduct and compensation agreement (CCA) was negotiated and signed to allow for the Mahalo East pilot production test to commence. All our key landholders are actively engaged in relation to our activities.

Comet Ridge is committed to high-quality engagement with our landholders, Traditional Owners and the local community, using local contractors and services wherever we can to support the areas where we operate.

Corporate activities

CleanCo GSA

Comet Ridge and CleanCo Queensland Limited (CleanCo) executed a gas sales agreement (GSA) for supply of gas by Comet Ridge into CleanCo’s Swanbank E gas-fired power station, which supports CleanCo’s renewable projects. The GSA received approval from CleanCo’s shareholding ministers in December 2023. This is Comet Ridge’s first GSA and is an important milestone for the Company. The natural gas will be produced from the Mahalo Gas Hub in Central Queensland, where CleanCo will offtake 3 PJ per annum (with an option to increase to 3.6 PJ per annum at FID).

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COMET RIDGE LIMITED DIRECTORS’ REPORT Continued

The GSA is subject to a number of conditions as disclosed in Note 9 of the accompanying financial statements, including Comet Ridge securing finance (by 30 June 2025) and gas transportation/processing agreements (by 30 June 2025) to satisfy the supply requirements under the GSA. Failure to satisfy these conditions or negotiate an extension if required to do so, may result in the GSA being terminated which would trigger a cash payment to CleanCo. Based on the longstanding relationship between the parties and the progress Comet Ridge has made with development of the Mahalo Gas Hub permits and the dataroom funding process, Comet Ridge believes it will be able to meet these timelines or agree extensions (if required). The parties have been working cooperatively in recent months to agree a gas commencement date which matches the gas supply constraints and gas requirement profile of the parties and to amend the remaining conditions dates accordingly.

Other GSA opportunities

Comet Ridge has been active during the half-year in progressing new gas supply agreements for its share of Mahalo Joint Venture gas. These opportunities exist with industrial gas users, gas retailers and gas to power generation companies for gas supply and prepay arrangements. The Company plans to progress these negotiations over the coming months now that the Mahalo Joint Venture Project has commenced FEED and gas delivery timeframes can be discussed with greater certainty.

Dataroom process

Comet Ridge has previously announced that a dataroom process was established to facilitate project funding requirements. Significant activity occurred during the half-year in relation to various corporate priorities for the Company, starting with project funding and now expanded to infrastructure access, additional gas supply along with funding prepayment and corporate transactions. Whilst this process is, in Comet Ridge’s view, progressing positively, these discussions are incomplete and confidential and there is no guarantee that a final proposal will be received or received on commercially acceptable terms, or that any transaction will eventuate.

Cash position

At 31 December 2024, Comet Ridge had $19,256,000 cash on hand following completion of a $12,028,000 placement in December 2024.

ROUNDING OF AMOUNTS

Pursuant to ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 the amounts in the Directors’ Report and financial report, have been rounded off to the nearest thousand dollars, unless otherwise indicated.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the Auditor’s Independence Declaration, as required under Section 307C of the Corporations Act 2001, accompanies this report.

Signed in accordance with a resolution of the Board of Directors.

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Tor McCaul Managing Director

Brisbane, Queensland, 13 March 2025

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COMET RIDGE LIMITED AUDITOR’S INDEPENDENCE DECLARATION

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COMET RIDGE LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

Note Revenue and other income Interest received Other income Expenses Employee benefits' expense Contractors' costs Exploration and evaluation expense written off Professional fees Corporate expenses Occupancy costs Information technology costs Fair value movement of financial liability 9 Finance costs 6 Other expenses Depreciation LOSS BEFORE INCOME TAX Income tax benefit/(expense) LOSS FOR THE PERIOD Other comprehensive loss, net of income tax Items that may be reclassified subsequently to profit and loss Exchange differences on translation of foreign operations TOTAL OTHER COMPREHENSIVE LOSS, NET OF INCOME TAX TOTAL COMPREHENSIVE LOSS Loss attributable to: Owners of the parent Total comprehensive loss attributable to: Owners of the parent LOSS PER SHARE Basic and diluted loss per share	December 2024 December 2023 $000's $000's 90 81 6 - (752) (1,239) (175) (268) (187) (42) (8) (67) (350) (213) (8) (9) (203) (125) 2,631 (2,271) (2,012) (1,371) (156) (153) (65) (63)
	(1,189) (5,740) - -
	(1,189) (5,740)
	(14) (5)
	(14) (5)
	(1,203) (5,745)
	(1,189) (5,740)
	(1,203) (5,745)
	Cents Cents (0.107) (0.568)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanied notes.

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COMET RIDGE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Financial asset at fair value 7 Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Right-of-use assets Financial asset at fair value 7 Exploration and evaluation expenditure 8 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings 12 Lease liabilities Financial liability at fair value 9 Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings 12 Financial liability at fair value 9 Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 10 Reserves Accumulated losses TOTAL EQUITY	December 2024 June 2024 $000's $000's 19,256 16,776 286 125 833 809 677 779
	21,052 18,489
	4 7 10 73 786 763 107,227 100,970
	108,027 101,813
	129,079 120,302
	2,211 2,752 8,504 - 10 77 30,230 32,737 722 868
	41,677 36,434
	- 7,367 1,630 1,521 2,961 2,474
	4,591 11,362
	46,268 47,796
	82,811 72,506
	196,572 184,835 1,212 1,561 (114,973) (113,890)
	82,811 72,506

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanied notes.

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COMET RIDGE LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

Balance at 1 July 2023 Loss for the period Other comprehensive loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owners Transfer of previous performance rights to accumulated losses Share issue costs on vested performance rights Shares issued on vesting of performance rights Share-based payments’ expense Balance at 31 December 2023 Balance at 1 July 2024 Loss for the period Other comprehensive loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owners Transfer of expired market-based performance rights to accumulated losses Contributions of equity net of transaction costs Shares issued on vesting of performance rights Share-based payments’ expense Balance at 31 December 2024	Contributed Equity Foreign Currency Translation Reserve Share Based Payments’ Reserve Accumulated Losses Total $000's $000's $000's $000's $000's 169,542 1,250 323 (106,802) 64,313 - - - (5,740) (5,740) - (5) - - (5)
	- (5) - (5,740) (5,745)
	- - (81) 81 - (6) - - - (6) 703 - (703) - - - - 582 - 582
	697 - (202) 81 576
	170,239 1,245 121 (112,461) 59,144
	184,835 1,226 335 (113,890) 72,506 - - - (1,189) (1,189) - (14) - - (14)
	- (14) - (1,189) (1,203)
	- - (106) 106 - 11,381 - - - 11,381 356 - (356) - - - - 127 - 127
	11,737 - (335) 106 11,508
	196,572 1,212 - (114,973) 82,811

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanied notes.

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COMET RIDGE LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

CASH FLOWS FROM OPERATING ACTIVITIES Interest received Interest and borrowing costs Payments to suppliers and employees NET CASH USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for exploration and evaluation assets Government grants received Restricted cash and deposits paid Restricted cash and deposits received NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Share issue costs Payment of principle portion of lease liabilities NET CASH FROM/(USED IN) FINANCING ACTIVITIES Net increase/(decrease) in cash held Cash at the beginning of the period CASH AT THE END OF THE PERIOD	December 2024 December 2023 $000's $000's 90 81 (574) (311) (1,885) (1,631)
	(2,369) (1,861)
	(10,433) (2,023) 4,000 - (76) (42) - 105
	(6,509) (1,960)
	12,028 - (605) (6) (65) (56)
	11,358 (62)
	2,480 (3,883) 16,776 11,651
	19,256 7,768

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanied notes.

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

1. Principal activities

Comet Ridge Limited and Subsidiaries’ (the Group) principal activities are to carry out gas exploration, appraisal and development. The Group has permit interests and exploration, evaluation and development activities in eastern Australia.

There have been no significant changes in the nature of the Group's principal activities during the half-year.

2. Basis of preparation

The interim consolidated financial statements (the interim financial statements) are for the half-year ended 31 December 2024 and are presented in Australian Dollars ($AUD) which is the functional currency of the Parent Company. The interim financial statements are prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting .

The interim financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The interim financial statements do not include all of the notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report of the Group together with any public announcements made by the Group during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

Pursuant to ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 the amounts in the Directors’ Report and financial report, have been rounded off to the nearest thousand dollars, unless otherwise indicated.

3. Material accounting policy information

The accounting policies adopted in the preparation of this interim financial report are consistent with those of the previous financial year and corresponding interim reporting period except for the impact of the new Accounting Standards and Interpretations described below.

The accounting policies have been applied consistently by the Group for the purpose of preparation of the interim financial statements.

New and amended standards adopted by the Company

There are no new or amended accounting standards effective in the reporting period commencing 1 July 2024 that have a material impact on the Group’s financial report.

New standards and interpretations not yet adopted

There are no accounting standards that are not yet effective and that would be expected to have a material impact on the Group in the current or future reporting year/periods and on foreseeable future transactions.

4. Going concern

The financial statements have been prepared on a going concern basis which contemplates that the Group will continue to meet its commitments and can therefore continue normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The Group has $19,256,000 in cash on hand at 31 December 2024. The Group had cash outflows from operating activities of $2,369,000 for the period ended 31 December 2024, and, as at that date, its current liabilities exceeded its current assets by $20,625,000. The current liabilities include the CleanCo Queensland Limited (CleanCo) financial liability of $26,998,000, PURE loan of $8,504,000, PURE warrant financial liability of $1,363,000 and APLNG deferred consideration payable of $1,869,000.

On 18 September 2023, Comet Ridge and CleanCo executed a long-term GSA for Comet Ridge to supply gas to CleanCo from its Mahalo Gas Hub permits. The GSA remains subject to two conditions precedent, being a transport and gas processing condition (which may be waived by Comet Ridge) and a finance condition. The finance condition requires Comet Ridge to obtain finance to satisfy the supply requirements under the GSA by 30 June 2025. If this condition is not met, extended or waived, the GSA may terminate and within 30 days (being 30 July 2025) a cash payment of approximately $26,998,000 ($20,000,000 financial liability indexed for CPI) would be due. However, the parties have been working cooperatively in recent months to agree a gas commencement date which matches the gas supply constraints and gas requirement profile of the parties and to amend the remaining conditions dates accordingly.

Comet Ridge and Santos have a liability to pay their proportional share of $4,000,000 of remaining deferred consideration to APLNG (in two annual instalments post completion of $2,000,000 or earlier upon a trigger event occurring). At 31 December 2024, $4,000,000 deferred consideration remains to be paid with Comet Ridge’s share being $2,286,000.

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

Comet Ridge has a loan outstanding with PURE Asset Management which is measured at its amortised cost of $8,504,000 at 31 December 2024. The loan expires on 17 September 2025 at which point a contractual repayment of $9,500,000 is due and payable, unless refinanced. The parties have commenced discussions regarding plans to refinance or repay the loan.

The Group has a number of commitments to continue to progress the Mahalo Gas Hub permits and Galilee permits. These commitments are made over various timeframes with exploration commitments required to be spent by 31 December 2025 amounting to $6,959,000 as disclosed in Note 13.

The ability of the Group to continue to adopt the going concern basis of preparation will depend upon a number of matters including the successful raising in the future of necessary funding through debt, equity, selldown or farm-out of assets, meeting the remaining conditions precedent under the GSA with CleanCo, and/or the successful exploitation of the Group’s tenements to meet these commitments as they arise.

The existence at 31 December 2024 of the CleanCo financial liability, deferred consideration payable to APLNG, loan payable to PURE as well as exploration expenditure commitments beyond the next 12 months, creates a material uncertainty that may cast significant doubt on the ability of the Group to continue as a going concern in the absence of being successful in relation to one of the above financing strategies. In the absence of this the Group may have to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts different from those stated in the financial statements. No adjustments for such circumstances have been made in the financial statements.

Comet Ridge continues to actively pursue a number of potential funding transactions to progress the appraisal and development of the Group’s projects including debt and equity funding, selldown, farm-out and gas prepay arrangements. At the date of this financial report, given the high demand for natural gas on the east coast and the significant acreage, equity and 2P+2C Reserves and Resources position that the Group has established in the Mahalo Gas Hub area, the Directors have a reasonable expectation that the Group will be successful with its future funding initiatives and, as a result, will have adequate resources to fund its future operational requirements and for these reasons they continue to adopt the going concern basis in preparing the financial report.

5. Accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement when applying the Group’s accounting policies. These estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances.

The critical estimates and judgements applied in the preparation of the interim financial statements are consistent with those at 30 June 2024, and are as follows:

• Going concern – refer Note 4

• Financial asset at fair value – refer Note 7

• Exploration and evaluation assets – refer Note 8

• Financial liability at fair value – refer Note 9

• Borrowings – refer Note 12

6. Finance costs

6. Finance costs
Interest expense on borrowings Effective interest charge on PURE loan Unwinding of discount on Santos deferred consideration receivable Unwinding of discount on APLNG deferred consideration payable Unwinding of discount on rehabilitation and restoration provision Lease liability expense	December 2024 December 2023 $000's $000's (575) (607) (1,137) (427) 47 68 (233) (327) (111) (69) (3) (9)
	(2,012) (1,371)

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

7. Financial asset at fair value
Current Santos – deferred consideration receivable Non-current Santos – deferred consideration receivable Movements in financial asset at fair value Balance at the beginning of the period Unwinding of discount Balance at the end of the period	December 2024 June 2024 $000's $000's 833 809
	833 809
	786 763
	786 763
	1,619 1,572
	December 2024 December 2023 $000's $000's 1,572 2,292 47 68
	1,619 2,360

Santos deferred consideration

On 28 June 2022, Comet Ridge acquired Australia Pacific LNG Pty Ltd’s (APLNG) 30% interest in the Mahalo Joint Venture Project for a total consideration of $20,000,000 payable in staged payments. Comet Ridge paid a $1,000,000 deposit in August 2021 and the upfront payment balance of $11,000,000 to APLNG on 28 June 2022. The remaining $8,000,000 of deferred consideration is payable in four annual instalments of $2,000,000 each commencing from June 2023, unless a post completion trigger event occurs requiring earlier payment. The trigger events that require earlier repayment are any of the following:

• a) a final investment decision is made for development of gas from the Mahalo Joint Venture Project;

• b) gas production from the Mahalo Joint Venture Project equalling or exceeding 10 Terajoules per day;

• c) a change in control of the Group;

• d) Comet Ridge disposing of more than a 15% interest in the Mahalo Joint Venture Project; or

• e) Comet Ridge is subject to an insolvency event.

At the same time as entering into the agreement with APLNG, Comet Ridge executed funding and option agreements with Santos QNT Limited (Santos) to provide loan funding of $13,150,000 to fund the initial consideration payable to APLNG and stamp duty costs. In exchange, Santos was given an option to purchase 12.86% of the APLNG interest acquired by Comet Ridge at proportional acquisition value of $8,573,000.

Comet Ridge received a notice from Santos to exercise their option on 23 September 2022, and the sale agreement was executed by both parties on 26 September 2022. At that date, the $13,150,000 loan owing to Santos was fully repaid via a reduction of $5,143,000 (being Santos’ share of the $12,000,000 initial consideration paid to APLNG) and cash repayment of $8,007,000 by Comet Ridge. Santos also assumed liability for its pro-rata share of the $8,000,000 deferred consideration payable to APLNG, being $3,429,000.

On 18 June 2024, Comet Ridge received the second-year deferred consideration payment from Santos of $857,333. The remaining balance of $1,715,000 (June 2024: $1,715,000) is payable by Santos in two equal annual instalments with the next instalment due in June 2025. The present value of the remaining payments due is $1,619,000 (June 2024: $1,572,000).

Interest income on the unwinding of the applied discount of $47,000 (December 2023: $68,000) has been recognised in the six-month period to 31 December 2024.

Fair value measurement

The fair value of the deferred consideration receivable from Santos is initially recognised at fair value through profit or loss as the present value of the $3,429,000 receivable in 4 equal annual instalments. For subsequent measurements, the present value is adjusted for the yearly instalments received from Santos and the unwinding of the applied discount credited to profit or loss.

The Santos deferred consideration asset is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. The inputs used in the calculation of the financial asset at fair value are as follows:

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

1. The remaining agreed cash settlement of $1,715,000 (June 2024: $1,715,000) receivable in equal instalments in June 2025 and June 2026; and

2. The pre-tax discount rate applied being 6% (June 2024: 6%).

Unobservable input Relationship to fair value Risk-adjusted discount The discount rate used reflects Santos’ credit risk. A change in the discount rate by 100 basis points would rate increase/decrease the fair value by $15,059 and $14,746 (June 2024: $22,238 and $21,686) respectively.

8. Exploration and evaluation expenditure

Exploration and evaluation expenditure Less provision for impairment Movements in exploration and evaluation phase Balance at the beginning of period Exploration and evaluation expenditure during the period Frontier Gas Grants received Exploration and evaluation expenditure written off Balance at the end of period	December 2024 June 2024 $000's $000's 131,941 125,684 (24,714) (24,714)
	107,227 100,970
	December 2024 December 2023 $000's $000's 100,970 96,288 10,257 1,443 (4,000) - - (6)
	107,227 97,725

Recoverability of exploration and evaluation expenditure

The Group assesses the recoverability of the carrying value of capitalised exploration and evaluation expenditure at each reporting date (or during the year should the need arise). In completing this assessment, regard is given to the Group’s intentions with respect to proposed future exploration and development plans for individual areas, to the success or otherwise of activities undertaken in individual areas, to the likely success of future planned exploration activities, and to any potential plans for divestment of individual areas. Any required impairment of capitalised exploration and evaluation expenditure is completed based on the results of the assessment. Furthermore, for various areas of interest, exploration and evaluation activities may not have reached a stage to allow a reasonable assessment to be made regarding the existence of economically recoverable reserves. Accordingly, exploration and evaluation assets may be subject to impairment in the future.

During the half-year, all exploration expenditure incurred on the remaining Gunnedah Basin permit was impaired. This is consistent with the policy adopted at 30 June 2024 to fully impair the expenditure with respect to Gunnedah. In addition, the New Zealand permit has now been relinquished and any expenditure in New Zealand during the half-year has been expensed to exploration permit expenditure.

Given the Conventional Deeps evaluation is ongoing and the upside potential of the CSG Resources along with long-term extension of the underlying permits, Comet Ridge is comfortable with the recoverability of exploration and evaluation expenditure for the Galilee permits and therefore no impairment has been made during the half-year. The Mahalo Joint Venture Project has Petroleum Leases awarded and the joint ventures partners, Comet Ridge and Santos, have approved the budget for Front-End Engineering Design (FEED) which is now underway and moving the project into development following a final investment decision. The Mahalo North Project has certified Gas Reserves and the Company submitted two environmental applications and a Petroleum Lease application in October 2023 as a precursor to enable project development and construction activities to commence. For the other three 100% owned Mahalo permits (Mahalo East, Mahalo Far East and Mahalo Far East Extension), Comet Ridge is still in the evaluation phase for these projects with the aim of certifying Gas Resources and Reserves for these projects. For these reasons Comet Ridge is comfortable with the recoverability of exploration and evaluation expenditure for the Mahalo Gas Hub permits as at 31 December 2024.

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

9. Financial liability at fair value

9. Financial liability at fair value
Current CleanCo Queensland Limited – financial liability PURE Asset Management – warrant shares APLNG – deferred consideration payable Non-current APLNG – deferred consideration payable Movements in financial liability at fair value Balance at the beginning of the period Unwinding of discount Movement in financial liability at fair value Balance at the end of the period Fair value measurement	December 2024 June 2024 $000's $000's 26,998 26,742 1,363 4,250 1,869 1,745
	30,230 32,737
	1,630 1,521
	1,630 1,521
	31,860 34,258
	December 2024 December 2023 $000's $000's 34,258 35,147 233 327 (2,631) 2,271
	31,860 37,745

(a) CleanCo liability

The liability to CleanCo Queensland Limited (CleanCo) arising from the completed agreements is recognised as a ‘financial liability at fair value through profit or loss’.

On 18 September 2023, Comet Ridge Mahalo Pty Ltd (CML) executed a seven-year Gas Sales Agreement (GSA) with CleanCo, subject to approval by CleanCo’s shareholding Ministers within 90 days, and the 2014 Deed of Option was terminated. Approval by the shareholding Ministers approvals was subsequently confirmed by CleanCo on 15 December 2023.

A summary of the key GSA terms are as follows:

Commencement Date	Between 1 July 2025 and 30 June 2026
Volume	3 PJ per annum. CleanCo has the option to increase the volume to 3.6 PJ per annum prior to FID
Delivery Point	Wallumbilla
Contract Period	The contract is for a seven-year period, with CleanCo having the option to reduce this to five years, and both parties having the option to agree to extend for up to a further five years.
Price	Pricing is market-based, with CPI escalation in Australian dollars.
Monthly Repayments	CML to make monthly loan repayments during the GSA term to account for previous investment made in CML and the Mahalo JV by Stanwell Limited, prior to the arrangement being assigned to CleanCo.
Conditions	1. Approval by CleanCo’s Shareholding Ministers (satisfied prior to 31 December 2023); 2. Approval by Comet Ridge’s Board of Directors (satisfied prior to 31 December 2023); 3. CML obtains reserves certificate for 115% of total GSA volume (satisfied prior to 30 June 2024); 4. CML obtaining finance to satisfy the supply requirements under the GSA; and 5. CML entering into gas transportation agreements to provide gas to the Delivery Point.

On 14 October 2024, a GSA amendment letter was signed by both parties amending the satisfaction dates for conditions 4 and 5 to 30 June 2025. If CML is unable to satisfy these remaining conditions or have the condition extended (if required) or waived by 30 June 2025, then the GSA may be terminated, and a cash settlement would be triggered on or before 30 July 2025. However, as condition 5 will most

Page | 19

COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

likely form part of the Mahalo Gas Hub infrastructure process and can be waived by CML, CML’s view is that this condition will not trigger an earlier possible cash settlement.

Based on the longstanding relationship between the parties and the progress Comet Ridge has made with development of the Mahalo Gas Hub permits and its dataroom funding process, Comet Ridge believes it will be able to meet these timelines or agree extensions (if required), noting the window for gas supply under the GSA is prior to 30 June 2026.

Fair value measurement

In considering the above, Comet Ridge has determined that a cash settlement continues to represent the maximum liability under the GSA. An expense of $256,000 (December 2023: $545,000), being the movement in the financial liability at fair value, has been recorded in the six-month period to 31 December 2024.

The amount owing to CleanCo has been recognised as a current liability as the Group does not have a right to defer settlement for at least twelve months.

Valuation techniques and process used to determine fair value

The fair value of the CleanCo liability is based on the anticipated financial liability arising from the executed GSA dated 18 September 2023. The CleanCo liability is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. The inputs used in the calculation of the fair value of the financial liability at fair value are as follows:

1. The option with the greatest liability that a market participant would want to be compensated for is a cash settlement based on the conditions precedent contained within the executed GSA not being met or waived, representing the maximum liability under the GSA. As a result, approximately $26,998,000 (June 2024: $26,742,000) based on current estimates ($20,000,000 indexed for CPI), is used as the basis for determining the present value of the liability at 31 December 2024.

2. The earliest date for the cash payment under point 1 above is 30 July 2025 (June 2024: 20 January 2025), giving a period of indexation of 11.4 years (June 2024: 10.9 years) from March 2014.

3. The CPI rate used to index the $20,000,000 cash payment from March 2014 is based on actual quarterly CPI rates from March 2014 to 31 December 2024 and forecast at 1.35% (June 2024: 1.33%) per quarter for the remaining period to 30 July 2025.

The relationships between the unobservable inputs and the fair value of the financial liability at fair value are as follows:

Unobservable input	Relationship to fair value
Agreement term	If CML is unsuccessful in satisfying conditions 4 and 5 specified in the GSA, or have them waived, the cash
	payment would be payable no earlier than 30 July 2025 (June 2024: 20 January 2025).
CPI rate	If the 1.35% (June 2024: 1.33%) per quarter forecast CPI rate reduces/increases to a low of 0.85% pa or a high
	of 1.85% pa, the indexed liability will reduce or increase by approximately 0.7% or $202,000 (June 2024: 1.9%
	or $516,000) respectively.

(b) Deferred Consideration – APLNG

On 28 June 2022, Comet Ridge acquired Australia Pacific LNG Pty Ltd’s (APLNG) 30% interest in the Mahalo Joint Venture Project for a total consideration of $20,000,000 payable in staged payments. Comet Ridge paid a $1,000,000 deposit in August 2021 and the upfront payment balance of $11,000,000 to APLNG on 28 June 2022. The remaining $8,000,000 of deferred consideration is payable in four annual instalments of $2,000,000 each commencing from June 2023, unless a post completion trigger event occurs requiring earlier payment. The trigger events that require earlier repayment are any of the following:

• a) a final investment decision is made for development of gas from the Mahalo Joint Venture Project;

• b) gas production from the Mahalo Joint Venture Project equalling or exceeding 10 Terajoules per day;

• c) a change in control of the Group;

• d) Comet Ridge disposing of more than a 15% interest in the Mahalo Joint Venture Project; or

• e) Comet Ridge is subject to an insolvency event.

Comet Ridge paid the second-year completion deferred consideration payment of $2,000,000 to APLNG on 26 June 2024. The balance of $4,000,000 (June 2024: $4,000,000) is payable in two equal annual instalments with the next instalment due in June 2025. The present value of the remaining payments due is $3,500,000 (June 2024: $3,266,000).

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

Fair value measurement

The fair value of the deferred consideration is initially recognised as the present value of the $8,000,000 liability payable in 4 equal annual instalments and has been capitalised to the Mahalo Joint Venture Project exploration and evaluation asset. For subsequent measurements, the present value is adjusted for yearly instalments paid to APLNG and the unwinding of the applied discount expensed to profit or loss. An expense of $233,000 (December 2023: $327,000) has been recognised in the six-month period to 31 December 2024.

The APLNG liability is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs. The inputs used in the calculation of the financial liability at fair value are as follows:

1. The remaining agreed cash settlement of $4,000,000 payable in equal instalments over 2 years commencing June 2025 (June 2024: $4,000,000 payable in equal instalments over 2 years commencing June 2025); and

2. The pre-tax discount rate applied being 14.7% (June 2024: 14.7%).

The relationships between the unobservable inputs and the fair value of the financial liability at fair value are as follows:

Unobservable input	Relationship to fair value
Risk-adjusted discount	The discount rate used is adjusted for the Group’s own credit risk. A change in the discount rate by 200 basis
rate	points would increase/decrease the fair value by $59,483 and $57,228 (June 2024: $85,137and $81,328)
	respectively.

(c) Warrant shares – PURE Asset Management Pty Ltd

On 9 September 2021, Comet Ridge executed a binding agreement with PURE Asset Management Pty Ltd (PURE) to provide Comet Ridge access to a secured term loan facility of up to $10,000,000. The facility has been fully drawn in two tranches of $6,500,000 and $3,500,000 respectively.

The loan agreement with PURE also contains detached warrant shares, with Comet Ridge issuing a total of 65,909,091 warrant shares in two tranches (as per below) exercisable for a period of 48 months from utilisation of the Tranche 1 loan on 17 September 2021.

• Tranche 1: 39,393,939 warrant shares issued on 12 August 2021 exercisable at $0.1539[1] per share; and

• Tranche 2: 26,515,152[2] warrant shares issued on 31 March 2022 exercisable at $0.132 per share.

• 1 Following the share placement announced in December 2024, the exercise price of the Tranche 1 warrant shares was amended from $0.165 per share to $0.1539 per share.

• 2 On 26 March 2024, PURE exercised 3,787,879 Tranche 2 warrant shares at $0.132 per share leaving a total of 22,727,273 warrant shares on issue under Tranche 2.

Fair value measurement

The fair value of the warrant share financial liability is calculated using a Black Scholes option valuation methodology. The key inputs into the fair value calculation are:

• a) Exercise price of each tranche of warrant shares being Tranche 1 $0.1539 per share / Tranche 2 $0.132 per share (June 2024: Tranche 1 $0.165 per share / Tranche 2 $0.132 per share);

• b) Expected volatility of the Company’s share price calculated at 41.6% (June 2024: 45.4%), reflecting the assumption that historical volatility is indicative of future trends (which may not necessarily be the actual outcome);

• c) Share price of the Company on each balance date being $0.145 (June 2024: $0.20) (noting that no allowance has been made for discounting the share price to reflect the issue price of an alternative equity raising if the warrant shares had not been issued);

• d) Expected remaining term of the warrant shares being 0.71 years (June 2024: 1.21 years).

The warrant share financial liability has been classified as Level 3 in the fair value hierarchy and is recognised as a “financial liability at fair value through profit or loss”. A gain of $2,887,000 (December 2023: loss of $1,726,000) has been recorded in the six-month period to 31 December 2024 to reflect the reduction during the current half year (increase during the prior half year) in the fair value of the warrant shares due to share price fluctuations.

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

10. Contributed equity

10. Contributed equity
Ordinary shares – fully paid Movements in ordinary shares Balance at the beginning of the period Share placement @ 14 cents per share1 Performance rights vested Share issue costs1&2 Balance at the end of the period	December 2024 December 2023 Number of Shares 1,107,801,434 1,010,373,085 85,914,286 - 2,723,000 5,140,470 - -	December 2024 June 2024 $000’s $000’s 196,572 184,835
		December 2024 December 2023 $000’s $000’s 184,835169,542 12,028 - 356 703 (647) (6)
	1,196,438,720 1,015,513,555	196,572170,239

1 On 12 December 2024, Comet Ridge announced a placement of new shares to institutional and sophisticated investors to raise $12,028,000 (before share issue costs). The placement comprised the issue of 85,914,286 new shares at an issue price of $0.14 per share. The placement shares were allotted to investors on 18 December 2024. Share issue costs of $643,000 were payable by Comet Ridge in relation to the placement.

2 Share issue costs of $4,000 were payable by Comet Ridge in relation to the 2,723,000 shares issued for vested performance rights during the six-month period to 31 December 2024.

11. Share-based payments

The share-based payments’ expense included in the financial statements with respect to performance rights issued during the half-year and already issued in prior years is as follows:

and already issued in prior years is as follows:
Consolidated Statement of Profit or Loss and Other Comprehensive Income Share-based payments’ expense included in employee benefits’ expense The object of the plan is to:	December 2024 December 2023 $000’s $000’s 127 582

(a) provide an incentive for employees/contractors to remain in their employment and continue to provide services to the Group in the long term;

(b) recognise the ongoing efforts and contributions of employees/contractors to the long-term performance and success of the Group; and

(c) provide employee/contractors with the opportunity to acquire performance rights and ultimately shares in Comet Ridge Limited.

No new performance rights have been granted during the half-year to 31 December 2024.

The following table shows the movements of performance rights during the half-year:

Grant date Expiry date 23-Nov-23 31-Dec-24	No. of rights 30 June 2024 Granted during the half-year Vested during the half-year Cancelled during the half- year No. of rights 31 December 2024 3,890,000 - (2,723,000) (1,167,000) -
	3,890,000 - (2,723,000) (1,167,000) -

The fair value of performance rights is determined at grant date. The value of performance rights that are issued subject only to nonmarket conditions such as a service condition or subject to a service condition and a performance condition (e.g. reserves certification), is determined by reference to the quoted price of the Company’s shares on the ASX and an appropriate probability weighting to factor the likelihood of the satisfaction of these conditions. The fair value of performance rights at grant date issued subject to a market condition

Page | 22

COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

(e.g. Total Shareholder Return performance), is determined using generally accepted valuation techniques including Black-Scholes option pricing model and Monte Carlo simulation that take into account the term of the performance right, the impact of dilution, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk free rate for the term of the performance right and an appropriate probability weighting to factor the likelihood of the satisfaction of non-vesting conditions.

Performance rights may only be issued if the number of shares underlying the performance rights, when aggregated with the number of performance rights on issue and the number of shares during the previous five years under the plan or any other employee incentive scheme, do not exceed 5% of the total number of shares on issue.

12. Borrowings

12. Borrowings
Current Loan payable to PURE Asset Management Pty Ltd Non-current Loan payable to PURE Asset Management Pty Ltd	December 2024 June 2024 $000’s $000’s 8,504 - - 7,367
	8,504 7,367

Comet Ridge entered into a binding facility agreement with PURE Asset Management Pty Ltd to provide the Company access to a term loan facility of $10,000,000 provided in two tranches of $6,500,000 and $3,500,000 respectively. Both tranches have been drawn with a maturity date of September 2025.

On drawdown of the respective tranches, Comet Ridge issued warrant shares that entitle PURE to acquire one Comet Ridge share per warrant share at the exercise prices outlined in the facility terms below. The warrant shares are exercisable by PURE at any point in time prior to the maturity date of the loan facilities. The fair value of the warrant shares has been deducted from the gross proceeds of the loan on the date of drawdown reflecting the fair value of the loan on that date as set out in the table below.

Opening balance Effective interest charge Carrying value of loan payable	December 2024 December 2023 $000's $000's 7,367 7,018 1,137 427
	8,504 7,445

The warrant shares are separately recognised as a financial liability at fair value through the Consolidated Statement of Profit or Loss and Other Comprehensive Income as disclosed in Note 9. In line with the accounting policy, the difference between the face value of the loan (repayment amount) and determined fair value on issuance is recognised in the profit or loss over the loan period utilising the effective interest rate method.

On 26 March 2024, PURE exercised 3,787,879 Tranche 2 warrant shares at $0.132 per share for cash consideration received by the Company of $500,000. The funds received by Comet Ridge were used to make a partial repayment on the loan, reducing the face value of the loan balance to $9,500,000.

Following completion of the placement in December 2024, the exercise price for Tranche 1 warrant shares was adjusted from $0.165 to $0.1539.

Should PURE exercise all of their warrant shares on issue (62,121,212 warrant shares), Comet Ridge would receive $9,063,000 of cash which can be used to repay the loan amount to the loan amount.

The key terms of the loan are:

Lender:	PURE Asset Management Pty Ltd
Structure:	Term loan with detached warrant shares
Interest:	Prior to Mahalo Joint Venture Project FID: 12%
	Post Mahalo Joint Venture Project FID: 10%
	Interest-only payment in quarterly instalments
Term:	48 months from utilisation

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COMET RIDGE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2024

Repayment:	Non-amortising bullet repayment
	Voluntary repayment(s) subject to cascading fees
Warrants:	39,393,939 warrant shares issued on 12 August 2021 with an adjusted exercise price of 15.39 cents per
	warrant share (Tranche 1); and
	22,727,273 warrant share (after exercise of 3,787,879 in March 2024) issued on 31 March 2022 with an
	exercise price of 13.2 cents per warrant share (Tranche 2).
Financial Covenant:	Minimum $1,500,000 cash balance
Security:	First ranking general security over all present and after-acquired property of the Company and subsidiaries

13. Commitments

Exploration expenditure

In order to maintain an interest in the exploration permits in which the Group is involved, the Group is committed to meet the conditions under the agreements. The timing and amount of exploration expenditure and obligations of the Group are subject to the minimum work or expenditure requirements of the permit conditions or farm-in agreements (where applicable) and may vary significantly from the forecast based on the results of the work performed, which will determine the prospectivity of the relevant area of interest. The obligations are not provided for in the financial statements.

Detailed Exploration and Evaluation - not later than 12 months - between 12 months and 5 years	December 2024 June 2024 $000's $000's 6,959 4,437 13,072 12,542
	20,031 16,979

Bank guarantees

Westpac Banking Corporation have provided bank guarantees totalling $398,700 (June 2024: $398,700) to the State of Queensland in respect of the Group’s exploration permits and environmental guarantees.

The bank guarantees are secured by term deposits.

14. Segment information

Operating segments are reported in a manner with the internal reporting to the chief operating decision makers. The chief operating decision makers, who are responsible for allocating resources and assessing performance of the operating segments, are the Board of Directors.

Identification of reportable segments

The principle operating activities of the Group are the exploration and evaluation of its tenements and gas reserves. The internal reports used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources is cash flow reporting of exploration and evaluation activities as one segment.

15. Events occurring after balance date

There has been no item, transaction or event of a material and unusual nature that has arisen between the end of the half-year and the date of this report likely, in the opinion of the Directors, to affect significantly the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial periods.

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COMET RIDGE LIMITED DIRECTORS' DECLARATION

The Directors declare that:

• (a) In the Directors’ opinion, the consolidated statements and notes thereto, as set out on pages 11 to 24 are in accordance with the Corporations Act 2001 including:

• I. complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and

• II. giving a true and fair view of the Group's financial position as at 31 December 2024 and of its performance for the half-year ended on that date.

• (b) in the Directors' opinion there are reasonable grounds, at the date of this declaration, to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Board of Directors.

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Tor McCaul Managing Director

Brisbane, Queensland, 13 March 2025

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COMET RIDGE LIMITED INDEPENDENT AUDITOR’S REVIEW REPORT

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COMET RIDGE LIMITED INDEPENDENT AUDITOR’S REVIEW REPORT

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COMET RIDGE LIMITED INDEPENDENT AUDITOR’S REVIEW REPORT

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