COMET RIDGE LIMITED — Investor Presentation 2013

Sep 2, 2013

==> picture [720 x 86] intentionally omitted <==

Comet Ridge Overview - Good Oil Conference

Tor McCaul, Managing Director Freemantle, 3 September 2013

www.cometridge.com.au www.cometridge.com.au

ASX Code : COI

Contents

==> picture [95 x 95] intentionally omitted <==

==> picture [95 x 96] intentionally omitted <==

==> picture [95 x 95] intentionally omitted <==

Company Overview

Gas Market

Queensland & NSW Assets

ASX Code : COI

www.cometridge.com.au

Section 1:

Company Overview

==> picture [87 x 10] intentionally omitted <==

----- Start of picture text -----

ASX Code : COI
----- End of picture text -----

www.cometridge.com.au

3

Comet Ridge Limited

Strategic CSG assets

• Large 3C Resource base and equity positions

• Multi-basin exposure

• Domestic and export market opportunities

• Tightening east Australian gas market

Focus on reserve certification

• Two pilot schemes operating at Mahalo Project – Mahalo Field Pilot and Mira Field Pilot

• Targeting initial 2P reserve booking 1Q 2014

• Advancing appraisal at other portfolio projects

Well funded to complete reserve certification programme at Mahalo

• ~A$13m cash on hand post A$9m placement

==> picture [289 x 343] intentionally omitted <==

Comet Ridge also holds petroleum assets in New Zealand and 12% of a business based in Denver focused on exploration targets in the Rockies

ASX Code : COI

www.cometridge.com.au

4

Comet Ridge – Corporate Overview

==> picture [298 x 314] intentionally omitted <==

----- Start of picture text -----

Capital structure (ASX:COI)
Share price (as at 2 Sep 13) $0.185
Shares on issue 458.1m
Market capitalisation [1 ] $84.7m
Cash (as at 30-Jun-13, plus
$13.1m
$9m placement)
Enterprise value [1 ] $71.6m
----- End of picture text -----

Source: IRESS

1. Excludes 2.5m unlisted options and 1.6m performance rights

==> picture [300 x 365] intentionally omitted <==

----- Start of picture text -----

12 month trading history
$0.35 3,500
$0.30 3,000
$0.25 2,500
$0.20 2,000
$0.15 1,500
$0.10 1,000
$0.05 500
$0.00 0
Volume traded ('000s) Share price ($)
3-Sep-12 3-Oct-12 3-Nov-12 3-Dec-12 3-Jan-13 3-Feb-13 3-Mar-13 3-Apr-13 3-May-13 3-Jun-13 3-Jul-13 3-Aug-13
----- End of picture text -----

ASX Code : COI

www.cometridge.com.au 5

Comet Ridge – Corporate Overview

Board

==> picture [47 x 57] intentionally omitted <==

==> picture [47 x 57] intentionally omitted <==

==> picture [46 x 56] intentionally omitted <==

==> picture [47 x 57] intentionally omitted <==

==> picture [46 x 57] intentionally omitted <==

==> picture [47 x 57] intentionally omitted <==

• James McKay 25 years in business (commerce/law background) 

• Non-Exec Chairman Former Chairman, Sunshine Gas 

• Tor McCaul Petroleum engineer with 25 years in upstream and Managing Director downstream oil & gas 

• Chris Pieters Geologist with 10 years in oil & gas 

• Commercial Director Former Chief Commercial Officer, Sunshine Gas 

• Tony Gilby Geologist with 30 years in oil & gas Non-Exec Director  Former Managing Director, Sunshine Gas

 Jeff Schneider Commercial background with 35 years in oil & gas Non-Exec Director  Former Director (Gas) at Woodside  Gillian Swaby 30 years in finance & resources  Non-Exec Director Former Chair of WA Council of Chartered Sec.

ASX Code : COI

www.cometridge.com.au

6

Net Gas Resources

• Significant independent Resource bookings in four areas

Comet Ridge Limited – Net Recoverable Resources

Location	Project	COI Interest	Contingent Resource (2C) (PJ)	Contingent Resource (3C) (PJ)	Prospective Resource (PJ)
Bowen Basin, QLD	Mahalo Project (ATP 337P)	35%	193	387	-
Galilee Basin, QLD	Gunn Project Area (ATP 744P)	100%	67	1,870	597*
Gunnedah Basin, NSW	PEL 6 / PEL 427 / PEL 428	22.5% / 50% / 60%	-	474	2,101
West Coast, NZ	PMP 50100 and PEP 50279	100%	-	244	-
Where the auditor h Total*	as detailed Prospective Resources in a r	ange, the mid-ran	ge case has been lis 260	ted in the table 2,975	2,698

• Where the auditor has detailed Prospective Resources in a range, the mid range case has been listed in the table.

ASX Code : COI

www.cometridge.com.au

7

Key Achievements - Past 12 Months

==> picture [642 x 429] intentionally omitted <==

----- Start of picture text -----

PRIORITY PROJECT PORTFOLIO PROJECTS
MAHALO GALILEE GUNNEDAH
  
Pilot drilling completed 3 well appraisal drilling Progressively
at Mahalo and Mira
programme increasing equity in
  Gunnedah blocks to
Both pilot schemes Successful Gunn-2
material position
operating extended production

 COI interest 35% test – 400 bwpd COI interests range
from 22.5% to 60%

 Phase 1 ATP 1015
JV with Santos (30%),

farm-in drilling JV with Santos
APLNG (30%) and
programme extends
Stanwell (5%)
Gunn Project Area
----- End of picture text -----

ASX Code : COI

www.cometridge.com.au

8

Funded to 2P Reserves at Mahalo Project

• Raised A$9m via a placement in July 2013

• Cash balance post raising of A$13m

• Company fully funded to complete Mahalo Project work programme and to continue operating Mahalo and Mira pilots

• Target of both pilots is to achieve commercial gas rates from one or more wells leading to conversion of gas resources to 2P gas reserves by 1Q 2014

• Value of Mahalo Project reserves underpinned by Stanwell Option Agreement and eastern Australia gas supply shortage which has driven up gas prices significantly

ASX Code : COI

www.cometridge.com.au 9

Section 2:

Gas Market

==> picture [87 x 10] intentionally omitted <==

----- Start of picture text -----

ASX Code : COI
----- End of picture text -----

www.cometridge.com.au

Tightening Eastern Australia Gas Market

• 4 large LNG consortia control almost 90% of 2P CSG reserves in Eastern Australia

• Intensifying competition for future gas reserves, driven by LNG growth

• Increasing pressure on domestic gas supply and pricing

• Gas producers writing new contracts at the higher end of a A$6-9/GJ range and prices are forecast to continue to rise

• Qld Gas Market Advisor forecasts a domestic supply constraint 2015-2020 if supply situation does not improve

==> picture [24 x 33] intentionally omitted <==

Qld domestic gas demand and projected gas demand for LNG exports

==> picture [361 x 200] intentionally omitted <==

Source: 2012 Gas Market Review Queensland (Queensland Government)

==> picture [391 x 130] intentionally omitted <==

----- Start of picture text -----

CSG 2P Reserves, 7%
5%
February 2013
42,776 PJ
LNG proponents
AGL
Other
88% Source: RLMS
----- End of picture text -----

ASX Code : COI

www.cometridge.com.au

11

Section 3:

Queensland & NSW Assets

ASX Code : COI

www.cometridge.com.au

12

Mahalo Project (ATP 337P) – Background

• Located in the Denison Trough (Bowen Basin), 240km west of Gladstone

• Close to infrastructure linking to Gladstone

• JV partners APLNG and Santos participate in two of the Gladstone LNG projects

• JV operational focus on running the two pilot schemes (Mahalo and Mira) with the aim of maximising gas reserves

==> picture [406 x 400] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au

13

Mahalo Project Pilots – Work Completed

ATP 337P (COI 35%, Stanwell 5%, APLNG 30%, Santos 30%)

• Mahalo and Mira pilot wells drilled July 2012 and January 2013

• Permeabilties in the hundreds of mD measured

• Confirms pilot areas are highly productive

• Construction of Mahalo and Mira pilot schemes during first half 2013 comprising:

• Downhole pumps and tubing

• Separators

• Flow lines

• Water storage tanks

• Gas flare

==> picture [332 x 350] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au

14

Mahalo Field Pilot

• Mahalo Field Pilot scheme on-line from April 2013

• s

• Recent pressure build-up exhibited lower productivity than when initially measured at time of drilling in 2012

• Indicating ineffective completion practices

• Bowen Basin coals can be highly sensitive to drilling fluids

• Dewatering at the Mahalo Field Pilot is continuing with two wells flowing gas to surface, which is encouraging despite the requirement for stimulation

==> picture [330 x 258] intentionally omitted <==

• JV now approved stimulation on two wells – planning being finalised

ASX Code : COI

www.cometridge.com.au 15

Mira Field Pilot

• 3 of the 4 wells (Mira 2, 4 and 5) at Mira Field Pilot scheme commenced pumping from June 2013

• Initial water rates encouraging with minimal pressure drawdown

• Recent pressure build-ups confirmed the generally high productivities measured at the time of drilling in 2013

• Mira 2, 4 and 5 are online to continue dewatering

==> picture [330 x 259] intentionally omitted <==

• Production at Mira 3 will commence following a work-over to restore the pump due to failure of downhole equipment – rig move to the site is imminent.

ASX Code : COI

www.cometridge.com.au 16

ATP 337P Mahalo Agreement with Stanwell

• In Sept 2011, COI/Stanwell option agreement whereby Stanwell can acquire COI 35% interest in Mahalo:

Range of Qld long-term ex-field gas contract price outcomes ($/GJ)

• First 15% interest for A$0.80/GJ per 2P reserve

• Additional 20% interest for A$1.15/GJ per 2P reserve

• Stanwell investment decision will be driven by balancing physical need for gas with government imposed budgetary constraints

• Value of Mahalo Project reserves underpinned by eastern Australia gas supply shortage which has driven up gas prices significantly

==> picture [344 x 217] intentionally omitted <==

Source: 2012 Gas Market Review Queensland

ASX Code : COI

www.cometridge.com.au 17

Galilee Basin – Background

• Large area (~250,000km[2] ) covering a big part of central western Queensland

• Overlain by Eromanga Basin and underlain by Drummond Basin

• Land use is grazing – cattle and sheep

• Oil recoveries and conventional gas flows over a number of years

• One working pilot in the basin

• Permian Betts Creek Beds

• Up to 6 seams

• Total thickness up to 24m net coal

• Significant coal mine province evolving in the shallow coals in the east

==> picture [394 x 387] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au 18

Galilee Basin – Greater Gunn Project Area

ATP 743P, ATP 744P and Galilee Farm-in

• 100% interest in 13,000 km[2] plus up to 75% interest in Farm-in Area (825 km[2] ), operated by COI

• 5 initial wells (2010) and 2D Seismic acquisition programme (2011)

• 1,870 PJ of 3C Contingent Resource and considerable untested upside

• 3 well programme (2012)

• Gunn 2 extended production test 1Q 2013

• 2 farm-in wells

• Assessing strategic options to advance project

==> picture [454 x 344] intentionally omitted <==

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

ASX Code : COI

www.cometridge.com.au 19

Galilee Basin – Commercial Options

Galilee Basin market opportunities

• Different market segments emerging for commercial development: coal, power, LNG

• Development option 1: Power for coal mines / local generation

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

• Development option 3: Domestic gas supply via Barcaldine

==> picture [387 x 426] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au

20

Gunnedah Basin – Background

• Large area covering central northern NSW

• Overlain by Surat Basin in north

• Land use is grazing, forestry and cropping

• Oil recoveries and conventional gas flows over a number of years

• Several working pilots in the basin

• Permian Blackjack and Maules Creek

• Multiple seams

• Total thickness up to 45m net coal

==> picture [401 x 407] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au

21

Gunnedah Basin – Regional Activity

• Significant investment has been made in the basin (ESG, Santos, EnergyAustralia) and material reserves delineated

• NSW Government policy has recently curtailed exploration in NSW within two km of townships

• Comet Ridge has 18,000 km[2] under licence across PEL 428 (60%), PEL 427 (50%) and PEL 6 (22.5%)

Gunnedah Basin permits and infrastructure

==> picture [396 x 403] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au 22

Comet Ridge Limited Summary

Strategic East Australian CSG assets

• Large resource and equity positions across three basins

• Domestic and export market opportunities

• Tightening east coast gas market with significant upward price pressure

Focus on reserve certification

• Two pilot schemes operating at Mahalo Project

• Targeting initial 2P reserve booking 1Q 2014

• ~A$13m cash on hand post A$9m placement

==> picture [289 x 343] intentionally omitted <==

ASX Code : COI

www.cometridge.com.au

23

Important Notice and Disclaimer

Disclaimer

This 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.

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 6, 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 6, PEL 427 & PEL 428 in this presentation is only a restatement of the information contained in the ESG announcement.

ASX Code : COI

www.cometridge.com.au

24

Comet Ridge Limited

Contact

Level 3 GPO Box 798 283 Elizabeth Street Brisbane 4001 Brisbane 4000

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

www.cometridge.com.au

ASX Code : COI

www.cometridge.com.au

25