COMET RIDGE LIMITED — Investor Presentation 2007

May 20, 2007

The Company Announcements Officer Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 By Electronic Lodgement

Date: 21 May 2007

Re: Excellence in Upstream Energy Conference Presentation

Please find enclosed a copy of a presentation to be given on 22 May at the Excellence in Upstream Energy conference being held at the Four Seasons Hotel in Sydney.

The presentation will also be used in discussions with brokers and analysts during the same week.

Yours faithfully

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Andrew J. Lydyard Managing Director

Comet Ridge

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Comet Ridge Limited Presenter: A. Lydyard Managing Director

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Who Are We?

• Comet Ridge Limited (COI) 4
• Oil and gas explorer/developer å transitioning to producer
• Projects in Australia & USA 4

Capital Structure

Shares on Issue			TOZETNINGTI
Unlisted options			5 million
Listed options			14.2 million*
Market Cap		AU\$30.7million
Cash			AU\$4.7 million
Top 20			$44\%$
Directors			12%
Shareholders			861

As of 15 May, 2007 *AU\$0.40 cents expire 29 June 2007

• ASX Listed: April 2004 4
• Management in Denver, CO (Dec 05)
• Major shareholder: Strike Oil (8.4%)

Liquidity: Avg daily volume $-257,500$ (2/1/07 thru 27/4/07) Maximum: 878,800 (2/1/07)

Project Areas

Targeting...

• $\triangleright$ Oil & Gas
• Coal Seam Gas

Grays Harbor

Tow Creek

Florence

Vader/Cedar Creek

Western

Australia

South Australia

Queensland

New South Wales

Tasmania

TARGET

Oil

Gas

Coal seam gas

Victoria

Northern

Territory

Galilee Basin Mahalo Tipton West¹

Gunnedah Basin

Comet Ridge

ASX Code: COI

Excellence in Upstream Energy - May 07

Why the USA?

• Strong energy markets, extensive infrastructure and attractive margins ۱
• Plethora of prolific oil and gas provinces = broad and diverse Ó opportunity base
• "On the ground" experience & proven track record ۱
• Access to prospective lands and first mover advantage prevails ۱

Generate significant shareholder returns via:

• Finding and producing incremental oil and gas in mature fields using new technology
• Finding and producing oil and gas in proven but overlooked areas

Stretegy

What Sets US Apart?

Strategy	Execution
People	Proven US based management team 6 professionals >145+ years E&P experience 3 have run large E&P businesses
Technology	Rapid adopter of latest technologies
Balanced portiblio	Coal seam gas and conventional oil and gas Tipten West royalty
Meaningful interests	33.75% to 100% of existing projects
Large acreage positions	600,000 controlled acres over 4 plays in US Interests in 7 large Australian permits
Operator	Comet Ridge operates all but one of the US projects
Activity level	High impact projects in place $10 - 12$ wells $+2$ seismic programs in 2007
Share price leverage	Portfolio offers significant upside opportunities

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People

EXPERIENCED BOARD

Name	Position	Experience	Located
Jeff Schneider	Chairman	$30 + y e ars$	Aust
Andy Lydyard	Managing Director	26 years	∶USA
Gill Swaby	Company Secretary & Non Exec. Director	26 years	Aust
Simon Ashton	Non Exec. Director.	30+ years	Aust
Gary Drobnack	Non Exec. Director	30+ years	USA

Board owns 12% of stock

Name	Position	Experience	Located
Andy Lydyard	President & CEO	26 years	USA
Gary Mabie	VP Operations	40 years	USA
Michael Cuba	VP Land & Bus Dev.	28 years	USA
Art Stewart	Manager Operations	30 years	USA
Jim Knox	Financial Controller	18 years	USA
Vanessa Lintz	Geologist	6 years	USA
All employees own options
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Excellence in Upstream Energy - May 07

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Project Summary

Potentia Value

	Grays Harbor	Vader/ Cedar Creek	Tow Creek/ Bear River	Florence
Play Type.	GAS	CSG/GAS	$O \mathcal{L} $	OIL
Modeled Reserve (Gross)	100 BCF 16.7 MMBOE)	140 BCF (23.3 MMBOE)	$-3.3$ MMBBLS	.5 MMBBLS
Working Interest	100%	40%	$35.6\%$ (Avg)	39%
BTAX NPV 10% (Net)	AU\$168 million	AU\$74 million	AU\$24 million	AU\$15 million
Potential value/share	AUS161	AUS0.75	AU\$0.225	AUS 0.15
Potential value/share	US\$1.29	US\$0.60	US\$0.18	US\$0.12

Revenues and costs un-escalated AU\$/share and US\$/share calculated with 104 million shares More complete data shown in Appendix 1

Normal

RANGERS

Grays Harbor Basin

• Proven but overlooked basin
• Conventional oil & gas ٨
• Washington State, Pacific NW USA 4
• 438,000 acres under lease or option Ò.
• 100% interest and operator ٨
• Lightly explored, proven basin ٨
• Multiple reservoir targets
• Excellent year round access ٨

Grays Harbor Basin

• 1 drillable prospect with bypassed pay 100+ BCF (P50)
• 38 leads 15 to 100 BCF (P50)
• 42 wells 7 deeper than 3,000ft ۳
• 2 wells on seismic one is a ٨ potential discovery
• Strong oil and gas indications ు
• Pipeline infrastructure in place
• Gas market identified

Vader/Cedar Greek

• Coal seam gas 4
• Washington State, Pacific NW USA 4
• 156,000 gross/62,400 net acres 4
• 40% interest (Cascadia Energy) 4
• Proven but overlooked basin a.
• Drilling commenced at Vader
• Exploration well on Cedar Creek in ۱ June
• Program aimed at establishing a ۵ significant gas resource in shallow coals and sands close to major pipeline infrastructure

Tow Creek/Bear River

• Oil in fractured shale reservoirs
• The Rockies, USA Ô.
• Mature oil field redevelopment å
• Large known oil field Ò.
• Tow Creek 200 MMBO in place* Recovered 6 MMBO (3%)
• 16,000 acres leased
• Operator å,
• Tow Creek (37.5% interest)
• Bear River (33.75% interest)
• Sidetrack $+1$ firm well in 2007
• Ready market premium prices
• Play expansion possible

*internal estimate

ASX Code: COI

Florence

• Oil in fractured shales à.
• Central Colorado, USA Ó
• 7,500 acres under lease 4
• Operator with 39%
• Mature oil field redevelopment â
• 8 sq mi 3D seismic program in 2007 ĝ,
• 3 wells later in the year 4
• Multiple objectives ۱
• Deeper zones very lightly drilled
• Shallow zones vertical wells

ASX Code: COI

Florence

• Field discovered 1862
• 15 MMBO produced from shallow ١ fractured shales
• Field largely abandoned
• Deeper potential virtually untested
• Royal Gorge 1 producing 100 BOPD
  • $-72,000$ barrels in 2 years
• Mountain Petroleum well targeting 100 to 200 BCF gas + 15 MMBO
• Seismic acquisition to commence ۱ immediately

Mahalo

• Coal seam gas 4
• Northern ATP 337P, Qld, Australia Ó
• Significant contingent gas resource å $(180 - 990$ BCF)
• 40% non operated Interest å.
• 260,000 acres å.
• Partners are Santos and Origin Energy å.
• Project can deliver shareholder value 4
• Significant CSG transactions, market growth and PNG pipeline cancellation
• 5 holes drilled, further work warranted å.

2007 Program & Capital

Region	Projects	2007 Activity	Net Capital (US\$ million)
Australia	Tipton West Royalty	Cash flow	10)
	Mahalo.	TBD.	TBD.
	Gunnedah Basin	Seismic + 2 wells	Farmed out
	Galilee Basin	Technical Studies	Farmed out
USA	Tow Creek/ Bear River	2 to 4 wells	\$1.2 to 2.5
	Florence	Seismic + 3 wells	\$1
	Grays Harbor	Seismic + 1 well	\$4 to 7
	Vader/Cedar Creek	4 wells.	\$1.0
	TOTAL	10 to 12 wells	\$7.2 to 11.5

Note: Timing of all activities subject to equipment availability, weather conditions, joir venture and regulatory approvals

20

Funding

Exploration Funding Requirement: US\$7.2 to 11.5 million

• © Current cash
• Cash on hand US\$3.0 million
• Industry partners
• $-$ Farm-outs
• Limited placement
• Opportunity for shareholders
• Opportunity to access US capital
• ♦ Potential asset sale
• Tipton West royalty

Summary

• Strong portfolio of eight US and Australian projects پ
• Exposure to conventional oil and gas and coal seam gas ۱
• Material interests and operator of most US projects ્રો
• Experienced board and proven US based management team Ó.
• High activity level in 2007 10 to 12 wells planned ٨
• Significant upside potential with success from existing ુ projects
• Funding via existing cash reserves, industry partners, asset sale and a limited capital raising

Glossary

Oil & Gas Terminology:

Crude Oil

• BBLS Barrels of Oil ã
• BOE Barrels of Oil Equivalent (1 BOE= 6MCF gas) ٨
• BOPD Barrels of Oil per Day Ò.
• MBBLS Thousand Barrels of Oil å.
• MBOE Thousand Barrels of Oil Equivalent ٨
• MMBBLS Million Barrels of Oil á
• MMBOE Million Barrels of Oil Equivalent Ó

Natural Gas

• MCF $-$ thousand cubic feet (approximately equal to 1 GJ) å.
• MCFD thousand cubic feet per day ٤
• MMCF Million cubic feet (approximately equal to $1$ TJ) े
• BCF Billion cubic feet (approximately equal to 1 PJ) å.
• TCF Trillion cubic feet (approximately equal to 1000 PJ) ◈

Albumini manana Appendix 1: Economics

	Grays Harbor	Vader/ Cedar Creek	Tow Creek/ Bear River	Florence
Play Type	GAS	GSG/GAS	$_{\rm OII}$	OM
Modeled Reserve (Gross)	100 BCF $(16.7 \text{ MMBOE})$	140 BCF (25.3 MMBOE)	3.3 MMBBLS	$1.5$ MMBBLS
Number of wells	20	400	44	60
Initial Rate	5 MMCFD/well	200 MCFD/well	150 BOPD	100 BOPD
Recovery per well	6 BOF (902650B0E)	0.35 BCF (63, 186 BOE)	300,000 BBLS	100,000 BBLS
Cost per well	\$2.9MM	\$245,000	\$2.2 million	\$600,000
Total Capital (Net)	\$57 million	\$39.2 million	\$8.14 million	\$2.34 million
Operating Expenses	\$0.50/MCF \$0.45/MCF trans	\$0.50/MCF \$0.45/MCF trans	\$1,500/well/mo	\$1,500/well/mo
Working Interest	400%	40%	$35.6\%$ (Avg)	39%
Product Price	\$5/MCF flat	\$5/MCF flat	\$60/BBL flat	\$60/BBL flat
BTAX NPV 10%	\$134 million	\$59 million	\$19.4 million	\$12 million
IRR	$>100\%$	$66\%$	$>100\%$	>100%
Potential value/share	US\$1.29	US\$0.60	\$0.18/share	\$0.12/share

AII US\$

Comet Ridge Limited has taken all reasonable care in producing the text and images contained in this presentation but does not warrant that the information contained herein is accurate or up to date.

The information on these slides is based on publicly available information, internal data and information from other sources. It is not intended to give investment or other advice to any party or individual(s) and the information is not a substitute for detailed investigation or analysis.

Comet Ridge Limited will not be responsible for any loss or damage (direct or indirect, consequential or otherwise) resulting from the use of information provided in this presentation.