COMET RIDGE LIMITED — Investor Presentation 2016

Sep 6, 2016

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Galilee Basin: Now is the time

Comet Ridge Limited 7 September 2016

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Eastern Australia Gas Market - Perfect Storm

• A perfect storm in the energy market has been brewing in the last few years – massive increase on the demand side from LNG exports superimposed with state and territory government mandated restrictions on the supply side

• Queensland has been blessed with gas common sense on both sides of politics over the past several years

• Recent price spikes to above $25/GJ during high demand winter period

• short term market only

• long term industrial customers under pressure

• Shortfall in gas supply to meet domestic demand from 2019

• Development of contingent resources and reserves required to meet forecast domestic demand

Galilee Basin – Now is the time

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Galilee Basin

Galilee Basin - Background

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

• Land use is grazing – cattle and sheep on large stations

• Historical exploration - oil recovered and gas flows from multiple wells

• Recent basin-wide focus on CSG

• One operating CSG pilot in the basin

• One shorter term single-well production test by Comet Ridge

• Potential for further exploration and appraisal for conventional and unconventional resources

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

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Galilee Basin

Exploration History

*wells intersecting Galilee Basin sequence

Stratigraphic Wells CSG Wells

Petroleum Wells

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Galilee Basin – Sandstones

Conventional Exploration

• ~100 petroleum wells (intersecting Galilee sequence) over 70 years

• Targeting Late Carboniferous to Permian sandstones to depths of ~3000m

• 3 wells had significant hydrocarbon shows – Koburra Trough inside Comet Ridge’s current ATP 743 / 744

• No commercial flow of hydrocarbons to date

• 2015 – Basin’s first sandstone contingent resource 153PJ (2C)[1] over Albany structure in Koburra Trough

>20 years since last petroleum well drilled in Koburra Trough – time to revisit

*wells intersecting Galilee Basin sequence

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1Chapter 5 ASX Listing Rules disclosure Page 20

Galilee Basin – Sandstones

Koburra Trough

• 3 historic petroleum wells within ATP 743 and ATP 744 recovered gas and/or oil from Lake Galilee Sandstone at base of Galilee Basin section

• Koburra 1, Carmichael 1 and Lake Galilee 1 flowed gas to surface at low rates

• However early basin wells were targeting oil and not designed to evaluate gas potential (high mud overbalance / not tested immediately on penetration etc.)

• Lake Galilee 1 – oil recovered

• Evidence of active petroleum system over the Koburra Trough

• Potential for significant hydrocarbon volumes

• Potential for additional oil and gas resources

• GTS – flowed gas to surface

• OTS – recovered oil to surface

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Galilee Basin – Sandstones

Lake Galilee 1

• First deep petroleum well in Koburra Trough, drilled by Exoil NL in 1964

• Targeting 4-way dip closure (valid structural test?)

• Targeting oil with high mud overbalance

• 260m gross sandstone over Lake Galilee Sandstone

• Gas flow + oil recovered from DST#5

• 3m light green oil @ 43.1°API gravity (Source: Devonian marine)

• Untested upper sandstone section with hydrocarbon bearing zones

• Gas analysis indicates slightly wet gas composition

• Confirmed presence of active hydrocarbon system in Koburra Trough

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Galilee Basin – Sandstones

Carmichael 1

• Drilled by Maple Oil in 1995 - 27km NE of Lake Galilee 1

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• Robust NW plunging anticlinal structure on eastern flank of Koburra Trough

• Targeting oil with high mud overbalance

• Three drill stem tests flowed gas to surface at low rates – two other tests over better reservoir quality, but did not flow

• 150m gross sandstone with >30m net pay showing hydrocarbon saturation and porosities up to 13%.

• Discovered large gas accumulation deemed uneconomic then (1995)

• Productivity of reservoir not optimally tested or assessed

• Well confirmed sandstone prospectivity in Koburra Trough

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Galilee Basin – Sandstones

Albany Structure - Review

• Large structure with aerial closure 61km[2]

• Significantly larger structure than previously interpreted

• Carmichael 1 within closure but down-dip of crest – upside potential

• Gas flowed despite 500-600psi overbalance

• Reservoir exposed to overbalanced mud for significant time before testing

• Flow test and build up times too short

• Tight-ish gas with condensate

• High perm streaks to assist drainage

• Contingent Resource: 153PJ (2C)[2 ]

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Balanced/underbalanced drilling should significantly improve production

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2Chapter 5 ASX Listing Rules disclosure Page 20

Galilee Basin – Conventional

Koburra Trough – Exploration Potential

• Large extent remains under explored and data poor: Koburra 1 to Lake Galilee 1 =120km

• Underbalanced/air drilling may significantly improve production

• Tight reservoir - fracture stimulation and lateral drilling may change economics

• Potential for additional structures with large gas accumulations – more seismic required

• Commercial upside alongside development of CSG resources

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120km
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Galilee Basin – CSG

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CSG Exploration

• Glenaras 1 drilled 50 years ago in September 1966 highlighted CSG potential of Galilee Basin “no significant hydrocarbon shows were encountered. Observed methane gas associated with coals”

• 1993-1995: Enron drilled early CSG wells with potential at Rodney Creek and Crossmore

• 2000: Rodney Creek CSG Pilot

• 2008: Glenaras CSG Pilot – operating with some gas produced

• 2008-2014: Major CSG exploration phase – definition of Gunn Project Area

• 2016: First lateral well drilled at Glenaras Pilot

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*wells intersecting Galilee Basin sequence

CSG – Gunn Project Area

Gunn Project Area

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• 6 individual coal seams

• depth to coal 700-1,000m

• 16m net coal deposited over large area

• average gas content 4.3 m[3] /t (high 7.3 m[3] /t)

• good to excellent permeability within target coals

• Gunn-2 EPT

• perforated single 4m coal interval

• seam isolated above and below by impermeable mudstone

• established connectivity to coals (i.e. completion methodology)

Gunn Project area and ATP 1015 area coals contain recoverable gas over an estimated 1,865km[2 ]

• evaluated methods of formation water treatment

• completed for long term production

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Galilee Basin - Contingent Resources

GALILEE BASIN CONTINGENT RESOURCES (PJ)[3 ]

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3Chapter 5 ASX Listing Rules disclosure Page 20

Galilee Basin – Positive Relationships

Environment and Community

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Galilee - Development

Future Development

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• Innovative exploration and development strategies

• Low cost exploration and development

• Wells drilled at low cost with minimal overheads

• Time efficient exploration and appraisal

• Gunn-2: 3 months from lease build to production test running

• Small to mid-cap companies suited to the task

• Commercial upside – development of sandstone gas alongside CSG

• Collaboration with midstream and gas consumers

• Investment to connect to east coast pipeline network

• Non-binding MOU in place with APA Group for connection to east coast market

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Galilee Basin – Commercial Options

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Market Opportunities

• Different markets exist for commercial development: coal, power, industrial, LNG

• 1) Power for coal mines / power

• 2) LNG project shortfalls

• 3) Industrial gas supply

Moving gas to the southeast via pipeline provides flexibility around all commercial opportunities – linkage to east coast market

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Galilee Basin – Summary

Summary

• Nearly 100 years of exploration yet basin remains under explored

• Large area with significant CSG and sandstone contingent resources

• CSG development progressing in two key areas with one working pilot and lateral well underway

• Cost effective exploration, appraisal and development

• Strong community engagement and understanding of critical nature of gas to any economy

• Multiple market segments requiring gas

• Potential to be key supplier to frustrated east coast gas market

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Questions

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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.

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Important Notice and Disclaimer

Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities

The Contingent Resource for the Albany Structure referred to at pages 5, 9 & 14 of this presentation are taken from an independent report by Dr Bruce McConachie of SRK Consulting (Australasia) Pty Ltd, an independent petroleum reserve and resource evaluation company, originally released to the Market in the Company’s announcement of 6 August 2015. The Contingent Resources information has been issued with the prior written consent of Dr McConachie in the form and context in which it appears. His qualifications and experience meet the requirements to act as a Competent Person to report petroleum reserves in accordance with the Society of Petroleum Engineers (“SPE”) 2007 Petroleum Resource Management System (“PRMS”) Guidelines as well as the 2011 Guidelines for Application.

The contingent resource estimates for ATP 744P quoted at page 14 of this presentation are based on and fairly represent, information and supporting documentation 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 5.42 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 contingent gas resource estimates for ATP 744P, other than those that relate to the Albany Structure provided in the Resources Table appearing on page 14 of this presentation were originally released to the Market in the Company’s announcement of 25 November 2010, and were estimated using the deterministic method with the estimate of contingent resources for ATP 744P not having been adjusted for commercial risk.

COI confirms that it is not aware of any new information or data that materially affects the information included in the two announcements referred to above and that all of the material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed.

The contingent gas resource estimates for ATP813P contained in the Resources Table at page 14 of this presentation were originally released to the Market in the Blue Energy’s announcement of 30 October 2014, and were estimated using the deterministic method with the estimate of contingent resources for ATP 813P not having been adjusted for commercial risk.

The contingent gas resource estimates for ATP 529P contained in the Resources Table at page 14 of this presentation were originally released to the Market in the Galilee Energy Limited announcement of 3 September 2015, and were estimated using the deterministic method with the estimate of contingent resources for ATP 529P not having been adjusted for commercial risk.

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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

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