COMET RIDGE LIMITED — Investor Presentation 2018

Mar 12, 2018

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Investor Update Presentation

March 2018

ASX Code : COI ASX Code : COI

www.cometridge.com.au

1

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.

ASX Code : COI

www.cometridge.com.au 2

Corporate Overview

Capital Structure – ASX: COI

Share price (9 March 2018)	$0.295
Shares on issue	673.5m
Performance rights	7.0m
Market capitalisation	$199m
Cash (31 December 2017)	$13.8m

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• 30 years in business

• James McKay (commerce/law background) Non-Exec Chairman ▪ Considerable public company experience including Sunshine Gas

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• Tor McCaul ▪ Petroleum engineer with 30 years Managing Director in oil & gas ▪ Previously Head of Commercial for Cairn plc in India

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• 30+ years in Finance & Resources

• ▪ Former Chair of WA Council of Chartered Sec.

Gillian Swaby Non-Exec Director

12 Month Share Price Performance

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0.32 6,000
0.28
5,000
0.24
4,000
0.20
0.16 3,000
0.12
2,000
0.08
1,000
0.04
0.00 0
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB
Price - $A
Volume - '000
Share
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• Geologist with 12 years in oil & gas

• ▪ Previously Chief Commercial Officer, Sunshine Gas

Chris Pieters Commercial Director

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• 20 years experience in M&A and Finance

Mike Dart

• Non-Exec Director

• Director of Dart Capital Partners, private venture capital fund

ASX Code : COI

www.cometridge.com.au 3

Comet Ridge Limited - Summary

▪ Focus on natural gas in eastern Australia

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▪ Very large blocks & multi-basin presence

✓ Southern Bowen (Mahalo) – Queensland

• Significant net 2P[+ ] (172PJ) & 3P[+ ] (374PJ) reserves located 240km west of Gladstone

• Targeting FID late calendar 2018

✓ Galilee – Queensland

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

• Appraisal drilling of Sandstone 2Q 2018

• Target to drill CSG pilot late 2018

✓ Gunnedah – NSW

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

• Longer term hold-then-follow strategy

ASX Code : COI

+Chapter 5 ASX Listing Rules disclosure Page 22

www.cometridge.com.au

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Comet Ridge – Supply Solutions

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

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▪ Near term – Mahalo & Galilee Sandstones:

• Mahalo one of the larger undeveloped and uncontracted gas reserves on the East Coast - 935 PJ 3P gross[+ ]

• FID target – calendar 2018

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

• Galilee – farm-out agreement executed - Drill Albany 1 well 2Q 2018 to 2800m

▪ Medium term – Galilee Coals:

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

• 100% equity position allowing farm-down options – Target Pilot drilling – late 2018

▪ Longer term – Gunnedah:

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

• Longer term hold-then-follow strategy

ASX Code : COI

www.cometridge.com.au 5

+Chapter 5 ASX Listing Rules disclosure Page 22

Comet Ridge - Strategic East Coast Gas Portfolio

			Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417	Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417	Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417	Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417	Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417	Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417	Galilee +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 67 1,870 Albany (SS) 56 153 417
			Mahalo +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG (40%) 18 172 374 224 385 389
			Gunnedah +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG 562 COI Total +Reserve (PJ) +Contingent Resource (PJ) Type 1P 2P 3P 1C 2C 3C CSG + SS 18 172 374 280 605 3,238
			Gunnedah	+Reserve (PJ)			+Contingent Resource (PJ)
			Type	1P	2P	3P	1C	2C	3C
			CSG						562
			COI Total	+Reserve (PJ)			+Contingent Resource (PJ)
			Type	1P	2P	3P	1C	2C	3C
			CSG + SS	18	172	374	280	605	3,238

+Refer to the Competent Persons Statement at Page 22 and the ASX announcement dated 6 March 2018 for further information on COI’s Reserves and Contingent Resources

ASX Code : COI

www.cometridge.com.au

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Comet Ridge – 12 month Highlights

Key Objectives achieved – Mahalo reserves upgraded & Galilee about to spud

Date	Description	Status
Apr 17	Executed Mahalo agency agreement for Comet Ridge to manage JV subsurface work	✓
Jun 17	Completed $5.3 million Placement	✓
Aug - Nov 17	Mahalo 2017 field work program successfully completed by Comet Ridge	✓
Nov 17	Executed Farm-in agreement - Vintage to farm into Galilee Sandstone “deeps”	✓
Nov & Dec 17	Completed $10 million Placement and $3.1m SPP	✓
Jan - Mar 18	Mira 6/2 gas production climbs substantially	✓
Feb 18	Comet Ridge re-appointed agent for 2018 work program	✓
Mar 18	Galilee farm-out deal becomes unconditional	✓
Mar 18	Mahalo Block reserves upgrade – 473% increase in 2P reserves	✓

ASX Code : COI

www.cometridge.com.au

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Mahalo Project
ASX Code : COI www.cometridge.com.au
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Developing into a high quality asset

• Mahalo is one of the larger undeveloped gas projects on the East Coast with gross 3P reserves* of 935 PJ[+]

• Comet Ridge operated work program in 2017 resulted in significant reserves[+] upgrade

• 473% increase in 2P to 173 PJ (for COI 40% interest)

• 71% increase in 3P to 374 PJ (for COI 40% interest)

• Gas resource volumes also increased significantly (even with large conversion to reserves) indicating further upside from ongoing appraisal

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Petajoules Mahalo Gross Reserves
1,000
900
800
700
600
3P
500
2P
400
1P
300
200
100
-
Aug 14 Dec 15 Mar 18
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Petajoules Mahalo Potential - 3P + 2C
2,000
1,800
1,600
1,400
1,200
1,000 2C
800 3P
600
400
200
-
Aug 14 Dec 15 Mar 18
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• +Chapter 5 ASX Listing Rules disclosure Page 22

*Gross Reserves have been estimated on the extrapolation of the reserves record by COI for its 40% interest across the whole of Mahalo.

ASX Code : COI

www.cometridge.com.au

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Well productivity has exceeded expectations

• The Mira 6 / 2 horizontal-vertical well combination was brought on-line by APLNG in December 2017 and commenced producing gas after two days

• Gas rate has risen to 840 mcf/d (12 March) and continuing on upward trend from 924m horizontal well

• Mira 6 performance has exceeded expectations and assisted in maiden 1P reserve

• Development wells could be twice as far in coals as Mira 6, and have horizontal well paths in two or more coals = significantly more productivity for incremental cost

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ASX Code : COI

www.cometridge.com.au

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Comet Ridge Managing 2018 Mahalo Program

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• Agency agreement extended by Santos and Comet Ridge to 31 December 2018 for Comet Ridge to continue to manage appraisal work

• Work Program & Budget fully approved by JV

• Budget includes environmental and cultural heritage work required for Petroleum Lease (PL) and Pipeline Licence (PPL) applications

• Two wells in budget and locations to be finalised shortly

• Comet Ridge expects more movement of 3P reserve to 2P category during 2018

ASX Code : COI

www.cometridge.com.au

11

Development Concept

• Comet Ridge to Target FID in late 2018

*Development Concept: possible option displayed

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1. Conversion of significant 3P to 2P reserve was achieved this month with reserves upgrade

• Some further 2P addition may be possible during 2018 at very modest cost

2. 25 TJ/d from northern part of the block to fill available pipeline capacity nearby (west) looks like constraining production given latest reserve picture

• 25 TJ/d is less than 1% of gross 3P reserve production annually (too low)

3. Initial production phase with long horizontal or multi-lateral wells to target 100+TJ/d likely to provide much better value

• dedicated export pipeline (sized for expansion) required to run only 60 km to the south

*Comet Ridge internal concept. Development remains subject to unanimous approval of Joint Venture.

Minimum gas processing required – only separation, compression and dehydration

ASX Code : COI

www.cometridge.com.au

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Mahalo likely to be at low end of cost curve

✓ Shallow

 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 with Mira 6 on trend for similar result

• Higher flowrates / less wells

• ✓ Low water rates  Low water-gas ratio on both Mahalo 7 & Mira 6

• 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

www.cometridge.com.au 13

ASX Code : COI

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Galilee Basin
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www.cometridge.com.au

Galilee Basin – Significant Scale

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• 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 gross 3C[+] resources certified in Sandstones (417PJ) in one structure to date

• Planned Galilee coal mine just to the east

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

ASX Code : COI

www.cometridge.com.au

15

+Chapter 5 ASX Listing Rules disclosure Page 22

Galilee Basin – Large Number of Potential Targets

Galilee Sandstone Leads and Prospects

• Galilee Basin lightly explored

• Previous gas flows from oil exploration wells in Comet blocks

• Seismic data set is sparse

• Albany has approx. 150m of gross sandstone with approx. 40m of net

• Successful gas flow in the first well could foreshadow wider success right across the eastern basin

Significant number of sandstone leads and prospects identified from relatively sparse seismic data set in the eastern Galilee

ASX Code : COI

www.cometridge.com.au

16

Sandstone “Deeps” 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

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

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

• Drilling long lead items ordered, Rig selection completed and contract execution by 16 March

• Expected spud slid 2 weeks into early May due recent Queensland weather events

ASX Code : COI

www.cometridge.com.au

17

Galilee Basin Coals

www.cometridge.com.au

ASX Code : COI

Galilee Basin - CSG

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

• 6 individual coal seams

• Depth to coal 700 - 1,000m

• 16 to 24m 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

• Significant CSG resource independently certified at over 1.8 Tcf in ATP 744

• Working towards CSG pilot drilling 2H 2018

ASX Code : COI

www.cometridge.com.au

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Comet Ridge – Key messages

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• Mahalo is one of the east coast’s

largest, most productive and proximal to market gas fields not currently in production

• Significant upside from Galilee – Albany sandstone to be drilled in May 2018 and CSG target for pilot drilling late in 2018

• East coast gas market continues to tighten due to moratoria on gas exploration, shut-down of coal fired generation and increasing LNG demand

• Comet Ridge well placed to form part of the supply solution for the east coast gas market

ASX Code : COI

www.cometridge.com.au 20

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

www.cometridge.com.au

www.cometridge.com.au

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 located 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 (MHA) 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, updated in an announcement dated 2 December 2015, and further upgraded in an announcement dated 6 March 2018 and were estimated using the deterministic method with the estimate of contingent resources not having been adjusted for commercial risk.

The contingent resource estimates for the unconventional gas located in ATP 744 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 744 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 744 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 ATP 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

www.cometridge.com.au 22