COMET RIDGE LIMITED — Investor Presentation 2013

Jul 30, 2013

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Capital Raising Presentation 31 July 2013

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Contents

 Company Overview

• Mahalo Project Update

• Capital Raising

• Investment Risks and Foreign Selling Restrictions

• Appendix: Portfolio Projects

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Section 1:

Company Overview

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Comet Ridge Limited

Strategic CSG assets

• Large resource and equity positions

• Multi-basin exposure

• Significant 3C Resource base

• 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

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

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Comet Ridge – Corporate Overview

Capital structure (ASX:COI)	Capital structure (ASX:COI)
Share price (as at 29 July 13)	$0.23
Shares on issue (prior to Placement)	408.1m
**Market capitalisation1 **	$93.9m
Cash (as at 30-Jun-13)	$4.7m
**Enterprise value1 **	$89.2m

Source: IRESS

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

12 month trading history

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Comet Ridge – Corporate Overview

Board

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• 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.

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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.

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Key Achievements - Past 12 Months

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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  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
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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 $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

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Qld domestic gas demand and projected gas demand for LNG exports

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Source: 2012 Gas Market Review Queensland (Queensland Government)

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CSG 2P Reserves, 7%
5%
February 2013
42,776 PJ
LNG proponents
AGL
Other
88% Source: RLMS
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Section 2:

Mahalo Project Update

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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

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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

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Mahalo Field Pilot

• Mahalo Field Pilot scheme on-line from April 2013

• s

• Recent pressure build-up exhibited lower productivity than when initially measured in 2012

• Indicating ineffective completion practices

• Bowen Basin coals can be highly sensitive to drilling fluids

• JV finalising plans for work-over to undertake stimulation work

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

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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

• Mira 2, 4 and 5 will be brought back online to continue dewatering following build-up

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• Production at Mira 3 will commence following a work-over to restore the pump due to failure of downhole equipment

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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

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Source: 2012 Gas Market Review Queensland

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FY2014 Mahalo Project Work Programme

• COI cash calls to date have been fully funded by Stanwell

• FY2014 work programme:

• Pumping operations to continue at both pilots

• The JV is finalising plans for work-overs (to be operated by Santos)

  • Initially at the Mira 3 well so pumping at Mira 3 can commence as soon as possible

  • Followed by the Mahalo Pilot stimulation work

• Drilling of final step-out Mahalo Project core well

• COI and Stanwell share to be funded by COI going forward

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

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Section 3:

Capital Raising

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Offer Details

Offer Structure	Institutional Placement to raise up to A$9 million by issuing 50 million shares(~12% of the issued capital)
Pricing	Issue price of A$0.18 per share Represents a discount of:  21.7% to last close on 29 July 2013 of $0.23  21.1% to the 5-dayVWAP of $0.228
Use of Funds	 Complete Mahalo Project work programme  Otherportfolioproject costs and workingcapital
Joint Lead Managers	Integra Advisory and Ord Minnett
Cash Position	Cash on hand of ~A$13 million post raising
Placement Timetable	Settlement of placement shares - Tues, 6 August 2013 Allotment of placement shares - Wed, 7 August 2013 Quotation ofplacement shares - Wed, 7 August 2013

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Use of Proceeds FY2014

Sources		Uses
Cash at 30 June 2013	A$4.7m	Mahalo work-overs and operations	A$5.0m
Institutional Placement (net proceeds)	A$8.4m	Other portfolio projects	A$1.0m
		Corporate and technical team costs	A$4.0m
		Working capital	A$3.1m
Total Sources	A$13.1m	Total Uses	A$13.1m

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Investment Highlights

Strategic assets	 Large resource and equity positions  High priority Mahalo Project with highly productive coals close to Gladstone market  Significant 3C Resource base
Experienced team	 Board and management team combines technical and commercial; CSG and conventional; upstream and downstream (including LNG) capability  Combines tenure with majors and successful independents
Focus on reserve certification	 Two pilot schemes operating at Mahalo Project – focus on maximising 2P reserves  Targeting initial 2P reserve booking 1Q 2014
Compelling market dynamics	 Tightening eastern Australia gas market  Intensifying competition for future gas reserves, driven by LNG proponents seeking to contract gas for train expansions  Shortage of gas supply for domestic customers  Eastern Australia gas supply shortage has driven up gas prices significantly and prices are forecast to continue to rise

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Section 4:

Investment Risks and Selling Restrictions

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Investment Risks

• There are various risks associated with investing in Comet Ridge, as with any stock market investment and, specifically, because of the nature of Comet Ridge’s exploration business and the present stage of development of Comet Ridge’s operations. Potential investors should consider whether the securities are a suitable investment having regard to their own personal investment objectives and financial circumstances and the risk factors set out below. Many of those risk factors are outside the control of the Company.

• Comet Ridge has a 35% interest in the Mahalo Project (ATP 337P) which is a joint venture between Comet Ridge, Stanwell Corporation Limited, Santos QNT

• Mahalo Work Pty Ltd and Australia Pacific LNG (Origin / ConocoPhillips / Sinopec). Due to its non-operator position, Comet Ridge will be dependent to a degree on the Program and efficient and effective management of those operations by its partners in executing the Mahalo work programme. However, there is a risk that the work Stanwell programme may take longer to execute, and/or may cost more to execute than budgeted. farm-in  Comet Ridge’s farm-out to Stanwell includes a number of options which are at Stanwell’s election. Stanwell may choose not to exercise one or more of these options.

• When exploring for, or producing gas from underground structures or coal seams there is always an inherent risk that the geological or reservoir characteristics

• Exploration and will prevent ultimate commercial production. These risks can impact the effective application of funds and resources and the ability of the Company to supply production risk gas at commercial rates, and may be the result of events and conditions beyond the Company’s control.  Gas field operations involve the potential for hazards such as well blowouts, explosions, uncontrollable flows, fires, formations with abnormal pressures, pollution,

• Operational releases of dangerous gas and other environmental hazards and risks. Comet Ridge could suffer substantial losses as a result of any of these events, risk particularly if it is not fully insured against those risks. Even where Comet Ridge is insured, accidents that damage drilling rigs or other equipment could delay exploration or production operations.

• The estimation of natural gas reserves involves subjective judgements and determinations based on geological, technical, contractual and economic information. There is uncertainty in the estimates and it is not an exact calculation. The estimates may change because of new information from operational activities or

• Reserves risk changes in economic factors, such as assumptions regarding incomes and costs. It may also alter because of acquisitions and disposals, new discoveries and extensions of existing fields as well as the application of improved recovery techniques. Published reserves estimates may also be subject to correction in the application of published rules and guidance.

	Comet Ridge’s exploration and appraisal activities are dependent upon the grant and maintenance of appropriate licences, permits, resource consents, access
Tenements risk	arrangements and regulatory authorities (authorisations), which may not be granted or may be withdrawn or made subject to limitations at the discretion of government or regulatory authorities. Although the authorisations may be renewed following expiry or granted (as the case may be), there can be no
	assurances the authorisations will be continued, renewed or granted, or as to the terms of such renewals or grants.
Land access	Overlapping tenure and other restrictions could impact Comet Ridge’s ability to commercially develop its assets.
risk	Access to drilling locations and rights of way generally require agreements and compensation arrangement with land owners. Negotiations of these agreements
	can be lengthy, costly and inconclusive and ultimately pose a risk that Comet Ridge may be denied access to a particular location.
	Comet Ridge’s possible future revenues are expected to be derived from domestic and/or export gas sales.
	The profitability of Comet Ridge’s coal seam gas business will be determined by the future market for domestic and export gas. LNG prices are generally linked
	to oil price and in US dollars, and can vary significantly depending on oil prices, exchange rates, worldwide LNG supply and demand and the terms under which
Gas market	LNG off-take arrangements are agreed. Domestic gas prices are historically fixed prices with a percentage escalation of CPI, and may also vary due to various economic factors and factors which influence demand and supply at the time of contracting.
	Numerous factors outside the control of Comet Ridge impact on gas prices. The prices required to achieve adequate returns on Comet Ridge’s coal seam gas
	business will vary depending on cost of production including drilling costs, economies of scale and gas flow rates. Any substantial decline in the price of gas is
	likely to have a material adverse effect on the financial position of Comet Ridge.

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Investment Risks (cont’d)

• The rate at which gas flows from Comet Ridge’s wells will be a determinant of its profitability. There is a risk that gas flow rates from Comet Ridge’s wells will not

• Gas flow rates be sufficient to meet the requirements of future gas supply contracts. This may result in further remedies and/or increased development expenditure to drill more and gas sale wells than originally anticipated. There is also a risk that Comet Ridge may not be able to procure gas sale agreements for its coal seam gas business on agreements reasonable terms, which may adversely affect the profitability of Comet Ridge.

• Comet Ridge may use horizontal drilling and/or hydraulic fracturing technology in its exploration and development activities. The use of these drilling technologies may be necessary for the production of commercial quantities of gas from geological formations of the type that Comet Ridge is targeting. There

• Hydraulic has been an increase in interest by governments and the public in hydraulic fracturing and the enactment of any new laws, regulations or requirements by any fracturing relevant government authority in respect of hydraulic fracturing could result in operational delays, increased operational costs and potential claims from a third party or governmental authority. Restrictions on the use of hydraulic fracturing may reduce the amount of gas Comet Ridge can produce and may have a material impact on Comet Ridge's business.

Access to infrastructure

• Infrastructure is a key path to market for a CSG producer and any limitation of infrastructure exposes a producer to potential cost and capacity constraints. Discoveries in remote locations may be difficult and expensive to commercialise due to infrastructure and transport costs.

• The sharing with other industry participants of transport and operating infrastructure is common in the gas sector. Any delay or failure to access properly maintained operating infrastructure or shared facilities may have a material adverse effect on the Company.

Joint ventures

• Comet Ridge is party to joint venture or joint operating agreements for several of the tenements in which it holds an interest. Under these agreements, Comet Ridge may be voted into programs and budgets which are not in line with the objectives and strategy of Comet Ridge or that Comet Ridge does not have the cash resources to fund. Comet Ridge may be required to contribute to increases in capital expenditure requirements and/or operating costs where the requirements of the project change or in circumstances where any or all of the joint venture parties are unable to fund their pro rata contributions to expenditure.

• Other companies may be operators under joint venture operating agreements and, to the extent that Comet Ridge is a minority joint venture partner, Comet Ridge will be dependent to a degree on the efficient and effective management of those operations by its partners.

• The Queensland government has developed a strategic cropping land (SCL) policy aimed at protecting prime agricultural land from urban development and resources exploration. SCL legislation was passed on 1 December 2011. The State Planning Policy 1/12: Protection of Queensland’s strategic cropping land

• Strategic (SPP 1/12) commenced on 30 January 2012. The SPP is designed to ensure that planning and development assessment under local government planning cropping risk schemes includes appropriate consideration of SCL. Based on the new legislation, the ability of companies like Comet Ridge to undertake operations and projects in certain protected areas and management areas may be restricted. Comet Ridge will continue to engage with the government and seek further clarification on the SCL maps and regulations in relation to SCL.

Environmental

• Comet Ridge’s operations and projects are subject to state and federal laws and regulation regarding the environment. These laws and regulations set various standards regulating certain aspects of health and environmental quality and provide for penalties and other liabilities for the violation of such standards and establish, in certain circumstances, obligations to remediate current and former facilities and locations where operations are or were conducted. Significant liability could be imposed on Comet Ridge for damages, clean up costs, or penalties in the event of certain discharges into the environment, environmental damage caused by previous owners of property acquired by Comet Ridge, or non compliance with environmental laws or regulations.

• Comet Ridge proposes to minimise these risks by conducting its activities in an environmentally responsible manner, in accordance with applicable laws and regulations and where possible, by carrying appropriate insurance coverage.

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Investment Risks (cont’d)

	The Clean Energy Act 2011 (Cth) (CEA) introduced a mandatory carbon pricing mechanism for certain large carbon emitters and natural gas suppliers in
	Australia. The price was fixed by the Commonwealth government on 1 July 2012. On 16 July 2013, the current Government announced a proposal that from 1
	July 2014, the mechanism will operate under a fully flexible pricing emissions trading scheme allowing the price of carbon to be determined by the market.
Carbon Tax	Generally, liable entities that exceed set thresholds of greenhouse gas emissions will be required under the CEA to purchase and surrender carbon units for each equivalent tonne of carbon dioxide released into the atmosphere. In some circumstances, direct statutory liability for the greenhouse gas emissions
	embedded in the natural gas rests with the supplier, rather than the ultimate user of the gas. The CEA applies to natural gas, in which case Comet Ridge may
	incur costs or liabilities under the CEA (unless it can transfer any liability accrued under the CEA to its customers, either through increased supply cost or the
	transfer of the statutory obligation). Comet Ridge may also be indirectly affected by increased operating costs as a result of CEA costs being passed on by
	suppliers and any impact that the CEA may have on the wholesale or retail gas price and markets.
	Changes in law and regulations or government policy may adversely affect Comet Ridge’s business. By way of example, in the context of the current political
	environment, the introduction of legislation that further restricts or inhibits coal seam gas exploration and production, changes to strategic cropping, native title,
	land access or overlapping tenement arrangements or the introduction of legislation that restricts or inhibits exploration and production would likely operate to
Regulatory risk	Comet Ridge's detriment.
	Changes to taxation rates or regimes, such as increases in taxation on resources produced by Comet Ridge (including the extension of the operation of the
	Petroleum Resources Rent Tax), or regulatory change in response to the potential impacts of greenhouse gas emissions are also relevant regulatory risks for
	Comet Ridge.
	Formal agreements with traditional and tribal land owners are required in many areas. Despite Comet Ridge working closely with Traditional Owners and
	entering into agreements to formalise Comet Ridge’s ongoing commitment to manage cultural heritage matters in its areas of operations, conflicts are possible
Native title	and denial of access to the land is possible, if items of cultural heritage significance are identified.
	Permit applications and existing permits may be affected by native title claims or procedures. This could preclude or delay granting of exploration permits and
	considerable expenses could be incurred negotiating and resolving issues.
Competition	As a result of high levels of demand in the natural resource industries, a shortage of supply of material, labour and services could impact adversely on exploration or production activities.
Insurance	Insurance of all risks associated with gas exploration and production is not always available and, where available, the cost can be high. Comet Ridge will have in place insurance considered appropriate for Comet Ridge’s needs, however there is no guarantee that such insurance will be sufficient in all circumstances.
Litigation	Comet Ridge may be exposed to potential legal and other claims or disputes in the future which could negatively impact Comet Ridge’s financial performance through damages payments and harm to reputation.
Occupational	Gas exploration and production may expose Comet Ridge’s staff to potentially dangerous working environments. If any of Comet Ridge’s employees suffered
health and	injury or death, compensation payments or fines may be payable and such circumstances could result in the loss of a licence or permit required to carry on the
safety risk	business.

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Investment Risks (cont’d)

• Comet Ridge, in order to meet future ongoing work programs, will likely require additional capital (via asset sales, farm-ins, equity, etc). There can be no assurance that sufficient capital funding will be available to Comet Ridge on favourable terms or at all. If Comet Ridge is unable to raise necessary capital,

• Financing there may be a reduction in planned capital expenditure which could have a material adverse effect on Comet Ridge’s ability to expand its business and/or maintain operations at current levels; this could, in turn, have a material adverse effect on Comet Ridge’s business, financial condition and operations. Any additional capital requirements may dilute existing shareholdings.

• Comet Ridge’s progress in pursuing its exploration and appraisal programs within the timeframes and currently envisaged cost structure could be influenced by

• Reliance on the loss of existing key personnel or a failure to secure and retain additional key personnel as Comet Ridge’s exploration and appraisal programs progress. The key personnel result of such loss would depend on the quality and timing of the employee’s replacement. risk  Although Comet Ridge’s key personnel have a considerable amount of experience and have previously been successful in their pursuits of acquiring, exploring and evaluating mineral projects, there is no guarantee or assurance that they will be successful in their objectives.

• Economic  Factors such as economic outlook, inflation, currency fluctuation, interest rates, demand, global geo-political events and hostilities and industrial disruption have factors an impact on operating costs, oil and gas prices and share market conditions. Comet Ridge’s future possible profitability and the market price of Comet Ridge Shares can be affected by these factors which are beyond the control of its directors.

• Investment in  There are general risks associated with investments in equity capital. The trading price of shares in Comet Ridge may fluctuate with movements in equity equity capital capital markets in Australia and internationally. This may result in the market price for New Shares being less or more than the Issue Price.

Generally applicable factors which may affect the market price of shares include:

• general movements in Australian and international stock markets;

• investor sentiment;

General

• Australian and international economic conditions and outlook;

• changes in interest rates, commodity prices and the rate of inflation;

• changes to government regulation and policies;

• announcement of new technologies; and

• geo-political instability, including international hostilities and acts of terrorism.

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Foreign Selling Restrictions

The contents of this Presentation have not been reviewed or approved by any regulatory authority in Hong Kong. The information in this Presentation has not been, and will not be, registered as a prospectus in Hong Kong under the Companies Ordinance (Cap 32) (CO) nor has it been authorised by the Securities and Futures Commission (SFC) in Hong Kong pursuant to the Securities and Futures Ordinance (Cap 571) of the Laws of Hong Kong (the SFO). Accordingly, the Presentation must not be issued, circulated or distributed in Hong Kong other than:  (i) to “professional investors” within the meaning of SFO and any rules made under that ordinance (Professional Investors); or  (ii) in other circumstances which do not result in the information in this Presentation being a “prospectus” as defined in the CO nor constitute an offer to the public which requires Hong Kong authorisation by the SFC under the SFO. Unless permitted by the securities laws of Hong Kong, no person may issue or have in its possession for issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to New Shares, which is directed at, or the content of which is likely to be accessed or read by, the public of Hong Kong other than with respect to New Shares which are or are intended to be disposed of only to persons outside Hong Kong or only to Professional Investors. No person allotted New Shares may sell, or offer to sell, such New Shares to the public in Hong Kong within six months following the date of issue of such New Shares. This offering is not an offer for sale to the public in Hong Kong and it is not the intention of Comet Ridge that the New Shares be offered for sale to the public in Hong Kong. This Presentation has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this Presentation and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the New Shares may not be circulated or distributed, nor may the Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an existing holder of Comet Ridge shares pursuant to Section 273(1)(cd)(i) of the Securities and Futures Act, Chapter 289 of Singapore (the SFA), (ii) to an institutional investor under Section 274 of the SFA, (iii) to a relevant person pursuant to Section 275(1), or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275, of the SFA, or (iv) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. Note: Where the New Shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is: a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments Singapore and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the New Shares pursuant to an offer made under Section 275 of the SFA except: to an institutional investor (for corporations, under Section 274 of the SFA) or to a relevant person defined in Section 275(2) of the SFA, or to any person pursuant to an offer that is made on terms that such securities of that corporation or such rights and interest in that trust are acquired at a consideration of not less than S$200,000 (or its equivalent in foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or other assets, and further for corporations, in accordance with the conditions specified in Section 275 of the SFA; where no consideration is or will be given for the transfer; or where the transfer is by operation of law. Neither this Presentation nor any other presentation have been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000 ("FSMA")) has been published or is intended to be published in respect of the New Shares. Accordingly, the New Shares may not be offered or sold in the United Kingdom by means of this Presentation or any other document, except to persons which are qualified investors within the meaning of section 86(7) of FSMA. This Presentation is being distributed only to, and is directed only at, persons in the United Kingdom that are qualified investors, within the meaning of Article 2(1)(e) of European United Kingdom Union Directive 2003/71/EC (the “Prospectus Directive”),that (a) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), or (b) are high net worth entities falling within Article 49(2)(a) to (d) of the Order; or to persons being fewer than 100 in number, to whom it may be lawfully communicated and to any other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). This Presentation must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this Presentation relates is available only to relevant persons and will be engaged in only with such persons. This Presentation and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other persons in the United Kingdom. Any person in the United Kingdom that is not a relevant person should not act or rely on this Presentation or any of its contents.

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Appendix: Portfolio Projects

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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

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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

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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

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

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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

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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

• Minimal impact on Gunnedah Basin positioning it for prioritised development to supply gas shortfall

• 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

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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

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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

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