COMET RIDGE LIMITED — Investor Presentation 2012

Sep 4, 2012

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5 September 2012

Tor McCaul Managing Director

www.cometridge.com.au

ASX Code : COI

www.cometridge.com.au

Contents

1. Comet Ridge Limited

2. Market

3. Community

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Corporate Overview

Capital Structure – ASX: COI

12 Month Share Price Performance

Share price (close 4 September 2012)	$0.12
Shares on issue1	402.1 m
Unlisted options	2.5 m
Undiluted market cap	$48 m
Pro-forma Cash2	$15 m
Enterprise value:	$33 m

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$0.18
$0.16
$0.14
$0.12
$0.10
$0.08
$0.06
$0.04
$0.02
$0.00
Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12
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1. Includes current shares on issue of 371.3m and shares to be allotted under the Retail Entitlement Offer on 5 September 2012 2. Based on 30 June 2012 cash position and includes net proceeds from the recent capital raising

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Strategy and Australian Operations

• Leverage maximum upside for shareholders via early phase exploration & appraisal projects

• Material equity positions in key Coal Seam Gas basins

• Convert Resources to Reserves

• Comet Ridge targeting first 2P Reserves within 6 months

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Comet Ridge also holds 17% of an exploration business based in Denver, focused in the Rockies and the Pacific Northwest and 100% of three CSG permits in New Zealand

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Comet Ridge Management and Board

Management:

Tor McCaul Managing Director Petroleum Engineering background with 25 years upstream oil and gas experience. LNG experience from Bontang in Indonesia.

Dale Aaskow Chief Operating Officer Petroleum engineering and operations background with 30 years experience in the oil and gas industry.

Stephen Rodgers Company Secretary Legal and commercial background with 25 years experience. Former in-house Legal Counsel at Sunshine Gas.

Don Langdon Chief Financial Officer Chartered accountant with over 40 years in audit and corporate services. Previously director and Co Sec for ASX listed companies.

Consultants

The Company also has very experienced specialist contractors in CSG exploration, pilot appraisal and development

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Board of Directors:

James McKay Non Exec. Chairman Commercial and legal background with 25 years experience in business and finance. Former Chairman of Sunshine Gas.

Gillian Swaby Non Exec. Director Specialist in corporate law, accounting financial management and control, with over 30 years Australian Resources experience.

Jeff Schneider Non Exec. Director

Commercial background with over 30 years oil and gas industry experience including 23 years with Woodside Petroleum.

Tony Gilby Non Exec. Director

Geology background with 30 years experience in oil and gas industry. Former Managing Director of Sunshine Gas.

Chris Pieters Non Exec. Director

Geologist with commercial and finance background. Former Chief Commercial Officer of Sunshine Gas.

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Net Gas Resources

 Significant independent Resource bookings in four areas

Comet Ridge Limited – Net Recoverable Resources	Comet Ridge Limited – Net Recoverable Resources	Comet Ridge Limited – Net Recoverable Resources	Comet Ridge Limited – Net Recoverable Resources
Project	COI Interest	Location	Contingent Resource 3C (PJ)	Prospective Resource (PJ)
Gunn Project Area (ATP 744P)	100%	Galilee Basin, QLD	1,870	597**
Mahalo Block (ATP 337P)	35%	Bowen Basin, QLD	387	-
PEL 427 and PEL 428 *	25% & 40%	Gunnedah Basin, NSW	231	1022
PMP 50100 and PEP 50279	100%	West Coast, NZ	244	-
Total			2,732	1,619

• Current interest – announced 21 June 2012 that COI is acquiring a further 25% interest in PEL 427, 20% in PEL 428 and 22.5% in PEL 6, subject to Govt and JV approvals ** Where the auditor has detailed Prospective Resources in a range, the mid-range case has been listed in the table

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Bowen Basin – ATP 337P Mahalo

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• Equity participants – COI 35%, Stanwell 5%, Australia Pacific LNG 30% and Santos 30% .

• Mahalo 4-spot pilot drilling has concluded

• 4 wells drilled - good continuity and thickness of coal

• Very good permeability demonstrated - JV planning commissioning of pilot facilities late 2012

• Mira 4-spot pilot scheduled 4[th] Qtr 2012

• Additional 4 core wells scheduled 4[th] Qtr 2012

• Targeting initial 2P Reserves 1[st] Qtr 2013, with further addition during 2013

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ATP 337P Mahalo Agreement with Stanwell

• Sale to Stanwell Corporation of COI interest in ATP 337P Mahalo:

• 5% interest for $7 million;

• Stanwell funding up to $8 million of 2012 drilling programme expenditure

• Stanwell option to pay $1M per PJ of 2P reserves booked (to buy-out COI completely)

• Mahalo Contingent Resource net to COI: 387 PJ of 3C and 193 PJ of 2C

• The graph below shows a range of potential outcomes for COI if Stanwell exercises its option

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Galilee Basin – Greater Gunn Project Area

• 100% interest in 13,000 km[2] plus Lake Galilee Farm-in Area, operated by COI

• 5 wells and 2D Seismic acquisition programme completed

• 1,870 PJ of 3C Contingent Resource

• Considerable upside in ATP 744P still untested

• Announced Lake Galilee farm-in with QER (COI to operate):

• Additional 825 km[2 ] added adjacent to Gunn Project Area and up to 75% equity

• ― Allows greater Gunn Project Area to be appraised as a single project

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Gunn Project Area 3C Gas Resources are material in size (1,870 PJ) and 100% COI

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Galilee Basin – Commercial Options

• 3 different market segments emerging for commercial development:

• Coal mine users

• Power producers

• LNG market

• Stage 1 Development: Power for Coal Mines / Local generation

• Up to 1,500 MW energy demand just east of Gunn Project Area

• Mine developments will provide significant infrastructure development (including transmission network) into Eastern Galilee Basin

• Stage 2 Development: Gas supply to LNG projects at Gladstone

Comet Ridge indifferent to end market if domestic gas prices approach export parity

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Coal Mining
Projects
Adani
Vale
Waratah Coal
Hancock Coal/GVK:
- Alpha
- Kevins Corner
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QLD Activities Schedule – FY2012/13

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Gunnedah Basin – PEL 427 & PEL 428

• Santos / TruEnergy $924m acquisition of ESG

• confirms gas potential of northern NSW

• likely to bring infrastructure and commercial options for gas

• ESG built Bohena Trough 2P reserves up to 1520 PJ gross

• Other troughs in Northern NSW?

• COI substantial position of 3.2 million acres

• 40% PEL 428

• 25% PEL 427

• COI recently announced acquisition of further interests in these permits. Upon completion COI interest will be:

• 60% PEL 428

• 50% PEL 427

• 22.5% PEL 6

 Future Activities:

• Targeted seismic surveys leading on to drilling activities into most substantial troughs (following NSW Govt policy landing)

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USA – Comet Ridge Resources LLC

• 17.257% in Comet Ridge Resources LLC (CRR)

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• US$3.5M dividend paid to Comet Ridge Limited in June 2011

• Grays Harbor drilling scheduled 3[rd] qtr 2012

• Completed sale of Florence oil field for US$12.25M (provides funding for CRR activities)

• Three other acquisitions / farm-ins this year which have added almost 200,000 acres in the Rockies with significant oil potential

• COI plans to monetise its US investment in next 12 months

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Targeted Milestones

• 12 wells in Mahalo block leading to initial reserves in 1[st] Qtr 2013 and additional reserves in 2013

• Early production test well in Gunn Project Area in Galilee Basin followed by pilot program

• 2 core wells in Lake Galilee Farm-in Area to extend Gunn Project Area and gas resources

• Develop multiple MOU(s) for gas sales from Galilee Basin

• Monetise US investment

Comet Ridge – substantial appraisal programme next 12 months - positioning for growth and converting resources to reserves in 2012 and 2013

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Market

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Gas Pricing & Volumes

• Historically, Eastern Australia has had some of the cheapest gas in the world

• Due to relatively small market size in comparison to reserves

• Cheap gas and cheap coal resulted in cheap electricity

• Gladstone LNG schemes have significantly shifted the market dynamic for gas in Eastern Australia

• LNG schemes provide linkage to world oil and energy prices and provide significant gas market

• Eastern Australian gas prices have already moved up and the market expects will continue to move up

• Just a matter now of how much and how quickly

• Short term ramp gas price concerns are diminishing

Eastern Australian gas prices are forecast to increase to A$6 to 8 / GJ

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Market

• LNG manufacturers have insufficient gas for expansion

• Takeovers of Eastern Star Gas and Bow Energy means 4 large LNG consortia control almost 90% of 2P CSG gas reserves in eastern Australia

• This will put intense pressure on domestic gas supply

• Resultant intensifying competition for uncommitted gas reserves from: ― Major power consumers (Galilee Basin coal projects)

• LNG schemes

• Domestic power generators

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• Other domestic/industrial gas consumers replacing expiring gas contracts

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Comet Ridge Position

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Comet Ridge has a large resource base and exposure to significant upside in two key east Australian basins where there is increasing demand for gas, significant new markets and prices moving upwards

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Community

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Responsible CSG Development

• CSG industry has been operating in Queensland for >15 years

• CSG industry in Eastern Australia is one of the most heavily regulated industries in Australia

• CSG explorers and producers need to work in an increasingly complex regulatory system

• Queensland Legislation currently in effect (or being finalised) that places requirements on CSG companies:

• ―

• Petroleum & Gas Act 2004 Water Act 2000 & Commonwealth (2007)

• ―

• Environmental Protection Act 1994 Strategic Cropping Land Act (2011)

• Aboriginal Cultural Heritage Act 2003

• Wild Rivers Act 2005

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• ―

• Nature Conservation Act 1992 Land Protection (Pest & Stock Route Management) Act (2002)

Comments from some commentators, that CSG is an unregulated industry, are false and misleading

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East Galilee Basin – Well Design & Locations

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• Permian Betts Creek coals lie well below aquifer units

• Seismic generally acquired down roads and existing fire breaks

• Exploration well pads quickly returned to natural vegetation

CSG footprint is small and impact is low

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Ecology: CSG & The Land

CSG Then

Lauren field in the Surat Basin was developed the way it was, during the drought years, in a manner that fitted both the landholder and the CSG company at the time.

CSG Now

The Berwyndale field in the Surat Basin has been developed more recently, and demonstrates how CSG proponents work closely with landholders to optimise the layout of infrastructure to minimise the impact on their farm productivity.

Source APPEA

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Case Study: Wells & Agriculture Can Co-exist

	Qld	NSW	Texas
Area(„000 sq km)	1,731	802	696
Gross Farm Product*($Bn)	9.1	8.3	9.7
Petroleum Wells	7,000	249	218,556

*Source: ABS 1367.0 State and Terr Stat Indicators for 2009/10; 2009 Texas Agriculture Statistics, USDA

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Source APPEA

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Important Notice and Disclaimer

Disclaimer

This investor presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. Shareholders and investors should undertake their own evaluation of this information and otherwise contact their professional advisers in the event they wish to buy or sell shares. To the extent the information contains any projections, Comet Ridge has provided these projections based upon the information that has been provided to Comet Ridge. None of Comet Ridge or its directors, officers or employees make any representations (express or implied) as to the accuracy or otherwise of any information or opinions in the Presentation and (to the maximum extent permitted by law) no liability or responsibility is accepted by such persons.

Summary information

This Presentation contains summary information about Comet Ridge and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Comet Ridge‟s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au or www.cometridge.com.au.

ASX Releases

Investors are advised that by their nature as visual aids, presentations provide information in a summary form. The key information on detailed Resource statements can be found in Comet Ridge‟s ASX releases. Resource statements are provided to comply with ASX guidelines but investors are urged to read supporting information in full on the website.

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements, opinions and estimates are not guarantees of future performance.

Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains such statements that are subject to known and unknown risks and uncertainties and other factors, many of which are beyond the control of Comet Ridge, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Such forward-looking statements are relevant at the date of this Presentation and Comet Ridge assumes no obligation to update such information.

Investment risk

An investment in Comet Ridge shares is subject to investment and other known and unknown risks, some of which are beyond the control of Comet Ridge. Comet Ridge does not guarantee any particular rate of return or the performance of Comet Ridge. Persons should have regard to the risks outlined in this Presentation.

Competent Person Statement

The gas resource estimates for ATP 774P, ATP 337P, PMP 50100 and PMP 50279 provided in this statement were determined by Mr John Hattner of Netherland, Sewell and Associates Inc, Dallas, Texas, USA, in accordance with Petroleum Resource Management System guidelines. Mr Hattner is a full-time employee of NSAI, and is considered to be a qualified person as defined under the ASX Listing Rule 5.11 and has given his consent to the use of the resource figures in the form and context in which they appear in this presentation.

The resource estimates for PEL 427 and PEL 428 referred to in this presentation were determined by Mr Timothy L. Hower of MHA Petroleum Consultants LLC in accordance with Petroleum Resource Management System guidelines. Mr Hower is a full-time employee of MHA, and is a qualified person as defined under the ASX Listing Rule 5.11. Mr Hower consented to the publication of certain resource figures which appeared in the announcement of 7 March 2011 made by Eastern Star Gas Limited (ASX:ESG) and any reference and reliance on the resource figures for PEL 427 & PEL 428 in this presentation is only a restatement of the information contained in the ESG announcement .

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Comet Ridge Limited

Address

Level 1 283 Elizabeth Street Brisbane 4000 & GPO Box 798 Brisbane 4001

Telephone: +61 7 3221 3661 Facsimile: +61 7 3221 3668 Email: info@cometridge.com.au

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