COMET RIDGE LIMITED — Investor Presentation 2013

May 13, 2013

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Spotlight on ASX Conference

14 May 2013, Hong Kong 16 May 2013, Singapore www.cometridge.com.au

www.cometridge.com.au

ASX Code : COI

Contents

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Comet Ridge Limited (COI)

Gas Market

COI Australian Assets

ASX Code : COI

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Section 1:

Comet Ridge Limited (COI)

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ASX Code : COI
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Company Snapshot

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• Upstream energy company focusing on exploration and appraisal of CSG from its Queensland and Northern NSW assets

• Exposure to significant upside in basins where there is increasing demand for gas, significant new markets and prices moving upwards

• ASX listed and based in Brisbane

• Operational focus - developing gas reserves in a tightening east

• Australian gas market

• 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

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Comet Ridge – Corporate Overview

Capital structure (ASX:COI)	Capital structure (ASX:COI)
Share price (as at 8 May 13)	$0.21
Shares on issue	406.5m
**Market capitalisation1 **	$85.4m
Cash (as at 31-Mar-13)	$6.5m
**Enterprise value1 **	$78.9m

Source: IRESS

1. Excludes 2.5m unlisted options and 3.9m performance rights

12 month trading history

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ASX Code : COI

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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
Tony Gilby	• Geologist with 30 years in oil & gas
Non-Exec Director	• Former Managing Director, Sunshine Gas
Chris Pieters	• Geologist with 10 years in oil & gas
Non-Exec Director	• Former Chief Commercial Officer, 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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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

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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

• First Mahalo pilot scheme now operating, second on-line next several weeks

• Targeting first 2P Reserves 2013

• Advancing appraisal at other projects

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Net Gas Resources

• Significant independent Resource bookings in four areas

• Outside of the Gladstone LNG projects, Comet Ridge estimates it holds ~20% of the CSG resources

Comet Ridge Limited – Net Recoverable Resources

Location	Project	COI Interest	Contingent Resource (2C) (PJ)	Contingent Resource (3C) (PJ)	Prospective Resource (PJ)
Galilee Basin, QLD	Gunn Project Area (ATP 744P)	100%	67	1,870	597*
Bowen Basin, QLD	Mahalo Block (ATP 337P) **	35%	193	387	-
Gunnedah Basin, NSW	PEL 427 and PEL 428 ***	25% & 40%	-	231	1,022
West Coast, NZ	PMP 50100 and PEP 50279	100%	-	244	-
Total			260	2,732	1,619

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

** Resource booking conducted 2010 and will be updated during 2013.

*** Current interest – announced 2012 that Comet Ridge Limited is acquiring a further 25% interest in PEL 427, 20% in PEL 428 and 22.5% in PEL 6, subject to NSW Government and JV approvals. Following the completion of this transaction, Comet Ridge Limited net resources in NSW will increase to 474 PJ (Contingent) and 2101 PJ (Prospective), totalling in excess of 5400 PJ eastern Australia gas resources.

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Key Achievements - Past 12 Months

MAHALO GALILEE

GUNNEDAH

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  Pilot drilling at 3 well appraisal Mahalo and Mira drilling programme   Constructed two Successful Gunn-2 pilot schemes, extended production Mahalo now test operating  Phase 1 ATP 1015  JV with Santos, farm-in drilling APLNG and programme extends Stanwell Gunn Project Area

 Progressively increasing equity in Gunnedah blocks to material position  JV with Santos

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2013 Work Programme

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Q1 (Jan-Mar) Q2 (Apr-Jun) Q3 (Jul-Sep) Q4 (Oct-Dec)
PRODUCTION TESTING PROGRAMME
Construction /
Mahalo pilot Testing
Commissioning
Non-operated
Construction /
Mira pilot Testing
Commissioning
100%, Gunn-2
operated EPT Testing Testing
CORE HOLE PROGRAMME
Step-out
Non-operated core wells Drilling
Farm-in Area, Stage 2
Drilling
operated Farm-in wells
SEISMIC PROGRAMME
CSG non- Seismic
Scouting
operated acquisition
MAHALO
GALILEE
MAHALO
GALILEE
NSW
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Section 2:

Gas Market

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Gas Market Demand

Qld domestic gas demand and projected gas demand for LNG exports

• Queensland gas market is now dominated by LNG exports

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• 4 large LNG consortia control almost 90% of 2P CSG reserves in E. Aust

• Increasing pressure on domestic gas supply and pricing

• Intensifying competition for uncommitted gas reserves

Source: 2012 Gas Market Review Queensland

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7%
CSG 2P Reserves, 5%
February 2013
LNG proponents
AGL
Other
88% Source: RLMS
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Gas Market Demand (continued)

• Domestic customers report an inability to contract gas

• LNG proponents seeking to contract gas for train expansions

 Qld Gas Market Advisor forecasts a domestic supply constraint 20152020 if supply situation does not improve

 NSW gas market expected to tighten further leaving +1m gas customers substantially undersupplied

Whichever way you look at it the east Australian gas story is a coal seam gas story. You can clearly see the perfect storm that is heading “ the way of east coast gas customers. Michael Fraser, Managing Director & CEO AGL Energy at the Australian Domestic Gas Outlook Conference 2013, Sydney, 10 April 2013 ” Australian gas consumer Brickworks switches fuels as supply crunch looms..... …..Brickworks is planning to take at least four of “ its plants in NSW and Queensland off gas in the next 6 months…. Platts, 10 April 2013 We’re heading towards a gas crisis. ” Chris Hartcher, NSW Minister for Resources and Energy, ABC Newcastle, 22 August 2012 “ ”

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Gas Pricing

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

• East Australian gas prices have increased substantially and forecast to continue to move up

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

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East Coast gas producers are now talking publicly of prices of up to $8/GJ (Origin and AGL) and up to $9/GJ (Santos) “ ……Draft Energy White Paper, Submission by the DomGas Alliance (16 March 2012) ” Santos Managing Director David Knox, said gas deals were already being signed at the "higher end" of a $6-$9 a gigajoule “ range, up from current prices of $3 to $4… ….The Australian, 23 February 2013 ” …consumers are being asked to pay around A$9/GJ for gas delivered up to 2016… “ ….Platts, 10 April 2013 ”

Source: 2012 Gas Market Review Queensland

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Section 3:

COI Australian Assets

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Mahalo Project – Background

• Located in the northern Denison Trough, 250km west of Gladstone

• Close to infrastructure linking to Gladstone

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

• Operational focus now on running two pilot schemes with the aim of proving initial 2P reserves in 2013

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Mahalo Project (ATP 337P), Bowen Basin

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

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

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

• Downhole pumps and tubing

• Separators

• Flow lines

• Water storage tanks

• Gas flare

• Mahalo pilot scheme on-line from late April and producing gas

• Mira pilot scheme due on-line next several weeks

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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 drilling programme and pilot facilities

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

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

• Resource booking conducted 2010 and will be updated during 2013.

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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

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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%) *

• Subject to NSW Government and JV approvals of Petrel acquisition.

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.

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Comet Ridge Limited

Contact

Level 1 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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