COMET RIDGE LIMITED — Investor Presentation 2017

Nov 21, 2017

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ASX Code : COI

www.cometridge.com.au

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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Comet Ridge Limited

• Strategy to bring material gas volumes into the East Coast market, as quickly as possible, from low-cost onshore assets

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▪ Very large blocks & multi-basin East Coast presence:

• ✓ Southern Bowen (Mahalo) – Queensland

• Two Coal Seam Gas (CSG) pilot schemes with initial 2P & 3P reserves achieved - moving towards significant reserves upgrade

• ✓ Galilee – Queensland

• Significant resource base northwest of Gladstone (over 2200 PJ 3C)[+ ] in Sandstones & CSG

• ✓ Gunnedah – NSW

• CSG Resources strategically located to meet NSW gas requirements (over 560 PJ 3C)[+]

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+Chapter 5 ASX Listing Rules disclosure Page 20

Immediate Investment Required

• McKinsey & Company report estimates up to $50 billion needs to be invested in new gas supply between now and 2030 to offset falling production from traditional reserves

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Source: AEMO, 2017 Gas Statement of Opportunities report

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Queensland is still the solution

• Substantial green activism against gas despite the significant contribution gas makes to industry & the national economy

• Restrictions in other states mean there will continue to be increasing pressure on Queensland to do more of the heavy lifting when it comes to supplying the east coast gas market into the future

• Additional gas supply is the only effective and rational response

• The Queensland gas industry in 2016 supported 60,582 jobs across the state and generated over $12.8 billion in economic activity (ref APPEA 2017)

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Comet Ridge – Supply Solutions

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Comet Ridge assets can form part of the supply solution for eastern gas market

▪ Near term – Mahalo:

• Current field programme completed – intention to substantially increase 2P & 3P reserves

• Develop asset with JV partners (Santos 30% & APLNG 30%)

▪ Medium term – Galilee:

• Substantial resources - 2,200 PJ 3C[+] across coals & sandstones

• Substantial scale - 9,700 km[2]

• 100% equity position allowing farm-down options – farm-in agreement recently executed

▪ Longer term – Gunnedah:

• Assets cover 17,000 km[2] & are located north of Santos’ Narrabri development

• Longer term hold-then-follow strategy

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+Chapter 5 ASX Listing Rules disclosure Page 20

Comet Ridge - Strategic East Coast Gas Portfolio

				+Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 30 219 112 232 372 +Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 67 1870 Albany Structure 56 153 417 +Reserve(PJ) +Contingent Resource(PJ) Type 2P 3P 1C 2C 3C CSG 562	+Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 30 219 112 232 372 +Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 67 1870 Albany Structure 56 153 417 +Reserve(PJ) +Contingent Resource(PJ) Type 2P 3P 1C 2C 3C CSG 562	+Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 30 219 112 232 372 +Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 67 1870 Albany Structure 56 153 417 +Reserve(PJ) +Contingent Resource(PJ) Type 2P 3P 1C 2C 3C CSG 562	+Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 30 219 112 232 372 +Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 67 1870 Albany Structure 56 153 417 +Reserve(PJ) +Contingent Resource(PJ) Type 2P 3P 1C 2C 3C CSG 562	+Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 30 219 112 232 372 +Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 67 1870 Albany Structure 56 153 417 +Reserve(PJ) +Contingent Resource(PJ) Type 2P 3P 1C 2C 3C CSG 562	+Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 30 219 112 232 372 +Reserve (PJ) +Contingent Resource (PJ) Type 2P 3P 1C 2C 3C CSG 67 1870 Albany Structure 56 153 417 +Reserve(PJ) +Contingent Resource(PJ) Type 2P 3P 1C 2C 3C CSG 562
					+Reserve (PJ)		+Contingent Resource (PJ)
				Type	2P	3P	1C	2C	3C
				CSG				67	1870
				Albany Structure			56	153	417
					+Reserve (PJ)		+Contingent Resource (PJ)
				Type	2P	3P	1C	2C	3C
				CSG	30	219	112	232	372
					+Reserve(PJ)		+Contingent Resource(PJ)
				Type	2P	3P	1C	2C	3C
				CSG					562

+Refer to the Competent Persons Statement at Page 20 and the ASX announcement dated 6 August 2015 for further information on COI’s Reserves and Contingent Resources

ASX Code : COI

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Comet Ridge – 2017 Highlights

Key Objectives – Complete Mahalo appraisal and progress Galilee

Date	Description	Status
Mar 17	Executed agency agreement for Comet Ridge to manage JV subsurface work	✓
Apr 17	Mahalo Block Work Programme and Budget approved by Santos and APLNG	✓
Jun 17	Completed a $5.3 million Placement	✓
Aug 17	Mira 3, 4 & 5 successfully under-reamed	✓
Sep 17	Humboldt South 1 corehole drilled – good results	✓
Nov 17	Mira 6 Horizontal well – drilled 920 metres in coal	✓
Nov 17	Executed Farm-in agreement for Vintage to farm into Galilee permits	✓
Nov 17	Completed a $10 million Placement and launched SPP	✓
	Mahalo Block reserves upgrade expected as gas rates increase at Mira	In progress

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JV Equity: Comet Ridge 40% Mahalo Project Santos 30% APLNG 30%

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Mira 3, 4 & 5 Under-Reaming

• Well production enhancement process

• Coal (fractures plugged by fines) is removed from around wellbore

• Provides easier pathway for gas and water to flow to well

• Then production tubing and downhole pump run back into the well and returned to production

• Pressure build up surveys indicate excellent results from under-reaming (refer table below)

Vertical Well	Skin value before	Skin value after
Mira 3	74	2.5
Mira 4	56	7.7
Mira 5	41	3.0
▪Wells on line since late August – Mira Pilot delivering steadily increasing gas rate

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Humboldt South 1 core hole

• Drilled early September

• Objectives achieved with zero safety or environmental incidents

• Total depth of 326 metres

• 8.4 metres of net coal intersected through main coal intervals (consistent with thickness at Mira wells to the west)

• Coal recovered from the well had gas bubbling from the core with laboratory analysis showing gas content on trend with other Mira wells

• Flow tests indicated permeability across the main target reservoir seam and across two shallower seams

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ASX Code : COI

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Mira 6 Horizontal Well

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• Well drilled early November

• Mira 6 designed to intersect existing Mira 2 vertical well through the centre of Mira pilot scheme

• Total length of horizontal well 1,283 metres (coal depth of about 250 metres)

• Objectives of Mira 6:

• Accelerate water and gas production from the Mira field; and

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• Help determine optimal production well design for development

Comet Ridge just completed Mahalo Block 2017 field work programme under budget notwithstanding wet weather

ASX Code : COI

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Mahalo likely to be at low end of cost curve

✓ Shallow

• Mahalo Pilot only 225 metres to coal

• Lower drilling and completion costs

✓ Permeable

• Mahalo 7 flowed 1.2 mcfd gas per metre of coal intersected along horizontal well

• Higher flowrates / less wells

• ✓ Low water rates  Mahalo 7 peaked at only 30 bwpd so exceptionally low water-gas ratio

• Lower water handling capex and opex / less workovers

• ✓ Gas Quality

  • No expensive CO2 or H2S removal to get to sales gas spec

  • Use basic carbon steel in wells, flowlines and plant

• ✓ Close to

• infrastructure

• 14 km - nearest pipeline connection

• 60 km - Mira Pilot to Jemena pipeline

• 63 km - Mira Pilot to GLNG pipeline

ASX Code : COI

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Galilee Basin
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Galilee Basin – Significant Scale

• Basin covers a large part of central western Queensland (~250,000km[2] )

• Comet has a massive position in the east portion of the Basin

• Land use is grazing on very large stations

• Historic oil exploration (1964 & 1995) includes gas flows from Sandstones at 2800 metres

• Comet has a dual sandstone and CSG opportunity

• Significant 3C resources certified in CSG (1,870PJ) and sandstone (417PJ)

• Planned Galilee coal mine just to the east

• Jemena recently announced plans to fast track extension of Northern Gas Pipeline from Mt Isa to Roma

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+Chapter 5 ASX Listing Rules disclosure Page 20

Sandstone Farm-out to Vintage Energy

$8.5 million farm-out programme for Vintage to earn 30% interest in Sandstone reservoir (‘Deeps’). Comet Ridge retains 100% of CSG potential

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• Vintage Energy to farm-in to Sandstone reservoir sequence of Comet Ridge’s ATP743, 744 and 1015 (Galilee Permits)

• Vintage team previously had significant onshore Australian oil and gas experience and success

• Two-stage farm-in to earn up to 30% interest in the Deeps by Vintage committing to spend $8.5m as part of an up to $15m work programme

• 1st Stage - drilling and testing of a new well Albany 1, near to Carmichael 1 (flowed gas in 1995)

• Farm-in agreement is subject to Vintage funding, JOA and Co-operation Agreement

• Refer detailed ASX announcement 1 Nov

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Galilee Basin - CSG

Gunn Project area and ATP 1015 area (COI 100%) coals contain recoverable gas over an estimated 1,865 km[2]

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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 Production Test

• Perforated single 4m coal interval

• Seam isolated above and below by impermeable mudstone

• Established connectivity to coals

• Evaluated methods of formation water treatment

• Demonstrated long term production solution

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Comet Ridge – Summary

▪ Mahalo

• ✓ Production enhancement at Mira 3, 4 & 5

Mahalo Pilot

• ✓ Humboldt South 1 corehole

• ✓ Mira 6 Horizontal well

• ✓ Major reserves upgrade approaching

▪ Galilee

• ✓ Well planning for Albany 1 finalised

Mira Pilot

• ✓ Various pipeline options under consideration

• ✓ Funding of first sandstone well via Vintage farm-in

• ✓ Local market developing just east

▪ Gunnedah

• ✓ Long-term follower strategy to Narrabri development

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Contact Telephone: +61 7 3221 3661 Facsimile: +61 7 3221 3668 Email

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ASX Code : COI

ASX Listing Rule 5 Disclosure

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

The Contingent Resource for the Albany Structure ATP 744 are taken from an independent report by Dr Bruce McConachie of SRK Consulting (Australasia) Pty Ltd, an independent petroleum reserve and resource evaluation company. The Contingent Resources information has been issued with the prior written consent of Dr McConachie in the form and context in which they appear in this Annual Reserves Statement for 2016. His qualifications and experience meet the requirements to act as a qualified petroleum reserves and resource evaluator as defined under the ASX Listing Rule 5.42 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 estimate of Reserves and Contingent Resources for the Mahalo Project as part of ATP 1191P provided in this presentation, is based on, and fairly represents, information and supporting documentation determined by Mr Timothy L. Hower of MHA Petroleum Consultants LLC Inc 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 5.42. Mr Hower is a Licensed Professional Engineer in the States of Colorado and Wyoming as well as being a member of The Society of Petroleum Engineers. Mr Hower has consented to the publication of the Reserve and Contingent Resource estimates for Mahalo in the form and context in which they appear in this presentation.

The reserve and contingent gas resource estimates for ATP 1191P provided in this presentation were originally released to the Market in the Company’s announcement of 28 August 2014 and subsequently updated in an announcement date 2 December 2015, and were estimated using the deterministic method with the estimate of contingent resources for ATP 337P not having been adjusted for commercial risk.

The contingent resource estimates for ATP 744P provided in 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 provided in this statement 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 any of the announcements relating to either AYP 1191P or ATP 744P 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 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 5.42. Mr Hower consented to the publication of the 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.

The contingent resource estimates for PEL 6, PEL 427 and PEL 428 were estimated using the deterministic method with the estimate of contingent resources for PEL 6, PEL 427 and PEL 428 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 ESG announcement of 7 March 2011 and that all of the material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed.

ASX Code : COI

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