Comet Ridge Limited

Comet Ridge Limited

2008 Objectives

• USA

• Funding
• Establish production & cash flow
• Strengthen team

• Australia

• Re-establish management presence
• Finalise Galilee Basin Native Title
• Secure funding (project and/or corporate)

Accomplishments

• Secured US$100 million line of equity
• Successfully drilled 4 wells – 3 on production*
• Established production and cash flow*
• Strengthened control in Florence – now 97.25% WI*
• Florence acreage position >15,000 acres*
• Secured 1 year extension to lease option over

Grays Harbor & commenced seismic*
• Strengthened US team*
• Re-established management presence in Australia
• Advanced Galilee Basin Native Title
• 2 wells to be drilled in Gunnedah Basin

*via CRR

Funding of US Activities

• $100 million line of private equity

• Pine Brook Road Partners, LLC

• Highly reputable NY based private equity firm
headed by Howard Newman

• Highly experienced & successful investment team
• Pine Brook is invested in 4 oil & gas companies in

addition to Comet Ridge Resources

www.pinebrookpartners.com

Elements of US Deal

• New JV Company formed All US$
• Comet Ridge Resources, LLC (CRR)

• Comet Ridge Ltd contributed assets valued $7MM

• Pine Brook contributed cash and assets valued at $9MM

• Initial ownership COI ~44%, Pine Brook ~56%

• Current ownership COI ~27%, Pine Brook ~73%

• After Pine Brook invests $28MM, (likely Q2 2009), COI
has the option to maintain a 20% interest

• COI shareholders carried at no risk through higher risk
exploration phase

• COI cannot be diluted below 5% equity in CRR

• Should be viewed as an investment with a capital gains
payout on the sale – no cash distributions

Corporate Structure

Priority US Projects

Grays Harbor

Florence

US Business is a Race

• US oil business is intensely competitive

• Company is intent on building its business

• Securing prospective leases is a race with
others

• CRR’s ability to compete and create value
is based on managing competitively
sensitive information

• The COI board is trying to maintain a
balance between maximising CRR’s
competitive position vs. COI’s continuous
disclosure obligations

Florence Results

•3 wells currently producing ~ 127 BOPD
•Oil in Codell Formation at Bull

Well Target Result
Golden Pierre Fm Producer
Apache Pierre Fm Producer
Rainbow Pierre Fm Producer
Deeper Pay Temp Aban.
Bull

Florence Looking Forward

• Continued production testing of the 3
completed wells

• Multi-well Phase II drilling program
being developed for New Year subject
to continued favorable production
testing results

Grays Harbor

• 420,000 acre lease
option extended

• 50,000+ acres leased
• 3D seismic complete
• 2D seismic underway
• Drilling planned for ‘09

Australian Strategy

• Coal seam gas growth strategy
• Built around existing CSG project portfolio
• Establish QLD based management team
• Maintain control of Galilee Basin via operatorship
• Prove up significant coal seam gas resource in

the Galilee Basin within 2 to 3 years
• Advance Mahalo and Gunnedah projects with

further CSG drilling
• Secure project and/or corporate capital

Australian Projects

Comet Ridge retains significant ATP’s 743 & 744P
Interests in QLD & NSW Galilee Basin

• Mahalo (COI: 40%) Mahalo
• Internal resource estimate Bowen Basin
exceeds 1 TCF of gas in place
• Further drilling required PEL’s 427 & 428
Gunnedah Basin
• ATP’s 743 & 744P (COI:100%)
• Comet operator
• Potentially 35+ TCF gas in place
• 160 km to Moranbah

• PEL’s 427/428
• Comet diluting to 20 – 25% after
carry through two holes

Assets provide exposure to
expanding gas market

Galilee Basin

• Located central QLD
• COI 100%
• ATP’s 743P & 744P
• Acquired from Strike Oil in IPO
• Advanced negotiations with

native title claimants (Nov 09)
• 13,000 sq km (3.2 million acres)
• Eastern flank of basin
• Coals from sub-crop down to

1,000m
• Nominal work commitment

over 4 years ($1.1million total)
• Strong industry interest

Industry Interest

• Strong industry interest Map shows successful 2008 bidders
in 2008 permit tender

• Comet Ridge was
unsuccessful with an
aggressive bid on one
permit

• Most of the Galilee
Basin now leased

Strong Gas Indications

• Very limited gas content data

• Mud-log shows suggest coals Gas Readings
are gas bearing

• Sands bleeding gas in Coal beds
Fleetwood-1 is encouraging shown in black

Gas detected
during drilling

At Rodney Creek

• Galilee Energy reported a
median gas content of 4.4 m3/t
(141 scf/t) raw basis for RC 8

• Good perms (50 md)

Resource Potential

Permit Permit Net area Coal Density Coal Gas GIP GIP
area top coal thickness content (m3x106) (TCF)
(mill.
(km2) @ (m) tonnes) (m3/t)
<1,000m

(km2)

ATP 6,482 4,287 15 1.6 102,892 4.4 452,728 16
743P

ATP 6,524 5363 15 1.6 128,705 4.4 566,304 20
744P

Notes: 1. Calculated volume based on very large areas
2. Coal thickness conservative
3. Gas content based on limited data from Rodney Creek 8

Mahalo

• Located central Eastern QLD Mahalo
• Covers 1,100 sq km Bowen Basin
• COI 40%

• Santos and Origin 30% each
• COI funded 5 holes – fully earned
• Contingent gas resource ~ 1 TCF*
• No work since Mahalo 2
• Bandanna Fm coals the target
• Coals proven to be gas bearing
• Permeabilities variable
• Requires further core holes
• In-seam well development potential

*Gas in place resource – high side case

Mahalo

Mahalo

• On trend with Fairview
• Same coals as Fairview
• Adjacent to “Greater Fairview”

• Part of $2.08 billion Santos/
Petronas deal

• Close to pipeline infrastructure
• Contingent gas resource up to

1TCF in place

Source: Santos ASX Announcement May 29, 2008

Mahalo - Activity to Date

• Numerous coal exploration holes
• Reasonable 2D seismic coverage
• Northern Denison Trough gas fields to the west
• 3 petroleum exploration wells within the project

• Lowesby (gas), Sunlight (P&A) and Humboldt Creek (gas shows)

• Comet Ridge funded 4 core holes and Mahalo 2

• Mahalo 1, Somerby 1, Mira 1, Humboldt 1

• Mahalo 1 encountered free gas in coals

• Mahalo 2 looks to be fault separated from 1

Gunnedah Basin, NSW

• Located Northern NSW QLD
• PEL’s 427 & 428 NSW
• Both permits renewed recently
• COI farmed out to Orion/ESG
• 1 core hole on each permit to

be drilled by end ‘08

Eastern Star
CSG projects

Recent CSG Transactions

Response to Market Challenges

• Board has adopted a capital preservation strategy
while still advancing projects:
• Maximise value of cash reserves
• Existing MD has stepped down
• Chairman to assume executive role – equity
compensation
• Board has suspended director’s fees
• Other cost savings aggressively pursued

• Chairman will relocate to QLD to drive program forward

Summary

• Comet Ridge has successfully secured capital to
advance its US projects
• No capital commitment until Q2 2009

• Company is now refocused on Australian CSG assets
• Secure project and/or corporate capital - market
conditions have slowed progress but still moving
forward

• Chairman to fill executive role
• Significant industry interest in the portfolio

US investment and Australian projects
offer potential for significantly
greater shareholder value

Disclaimer

This Investor Update Presentation does not constitute an offer to or a solicitation from any person
receiving it (the “Recipient”). The delivery of this Investor Update Presentation does not indicate
that Comet Ridge Limited (together with its subsidiaries, the “Company” or “Comet Ridge”) intends
to extend an offer to sell or to solicit an offer to buy its securities to the Recipient at any time, and in
any event, no such offer would be made until the Company determined, in its sole discretion, that
the Recipient was qualified to receive an offer or a solicitation to buy its securities and
communicated such a determination to the Recipient. Notwithstanding the delivery of this Investor
Update Presentation, all offers, if any, to buy the Company’s securities would be made on the terms
to be agreed by the Company and the Recipient.

The information on these slides is based on publicly available information, internal data and
information from other sources. It is not intended to give investment or other advice to any party or
individual(s) and the information is not a substitute for detailed investigation or analysis.

Comet Ridge Limited will not be responsible for any loss or damage (direct or indirect,
consequential or otherwise) resulting from the use of information provided in this presentation.