Comet Ridge Ltd · ASX:COI

Comet Ridge — APPEA CSG Conference 2012

28 slides from Comet Ridge's conference presentation, Oct 9, 2012

1. Slide 1: Galilee & Gunnedah: Gas for Growth

   For personal use only APPEA CSG Conference, Brisbane Galilee & Gunnedah: Gas for Growth 9 October 2012 Tor McCaul Managing Director www.cometridge.com.au ASX Code : COI www.cometridge.com.au

2. Slide 2: Contents

   For personal use only Contents 1. Comet Ridge Limited 2. Market 3. Galilee Basin 4. Gunnedah Basin 5. Community 6. Conclusions ASX Code : COI www.cometridge.com.au 2

3. Slide 3: Section 1: Comet Ridge Limited

   For personal use only Section 1: Comet Ridge Limited ASX Code : COI www.cometridge.com.au 3

4. Slide 4: Corporate Overview

   For personal use only Corporate Overview Capital Structure – ASX: COI 12 Month Share Price Performance Share price $0.11 (close 8 October 2012) Shares on issue 402.1 m Unlisted options 2.5 m Undiluted market cap $44 m Pro-forma Cash 1 $15 m Enterprise value: $29 m 1. Based on 30 June 2012 cash posit

5. Slide 5: Comet Ridge Management and Board

   Comet Ridge Management and Board Management: Board of Directors: For personal use only Tor McCaul Managing Director James McKay Non Exec. Chairman Petroleum Engineering background with 25 Commercial and legal background with 25 years upstream oil and gas experience. LNG years experience in business

6. Slide 6: Strategy and Reserves Focus

   For personal use only Strategy and Reserves Focus  Leverage maximum upside for shareholders via early phase exploration & appraisal projects  Material equity positions in key Coal Seam Gas basins  Convert Resources to Reserves  Comet Ridge targeting first 2P Reserves within 6 months Comet Ridge

7. Slide 7: Net Gas Resources

   For personal use only Net Gas Resources  Significant independent Resource bookings in four areas  Almost 80% of Comet Ridge Contingent Resource is in Galilee and Gunnedah Basins Comet Ridge Limited – Net Recoverable Resources COI Contingent Prospective Project Interest Location Resource 3C (PJ) Re

8. Slide 8: Section 2: Market

   For personal use only Section 2: Market ASX Code : COI www.cometridge.com.au 8

9. Slide 9: Gas Pricing & Volumes

   For personal use only Gas Pricing & Volumes  Historically, Eastern Australia has had some of the cheapest gas in the world ― Due to relatively small market size in comparison to reserves ― Cheap gas and cheap coal resulted in cheap electricity  Gladstone LNG schemes have significantly shifted the

10. Slide 10: Market

    For personal use only Market  LNG manufacturers have insufficient gas for expansion  Takeovers of Eastern Star Gas and Bow Energy means 4 large LNG consortia control almost 90% of 2P CSG gas reserves in Eastern Australia  This will put intense pressure on domestic gas supply  Resultant intensify

11. Slide 11: Section 3: Galilee Basin

    For personal use only Section 3: Galilee Basin ASX Code : COI www.cometridge.com.au 11

12. Slide 12: Galilee Basin – background

    Galilee Basin – background  Large area covering a big part of central For personal use only western Queensland  Approx 250,000 km2  Overlain by Eromanga Basin and underlain by Drummond Basin  Key towns include Longreach, Barcaldine, Blackall, Winton, Hughenden and particularly for Comet Ridge, A

13. Slide 13: Galilee Basin – Greater Gunn Project Area

    For personal use only Galilee Basin – Greater Gunn Project Area  100% interest in 13,000 km2 plus Lake Galilee Farm-in Area, operated by COI  5 wells and 2D Seismic acquisition programme completed  1,870 PJ of 3C Contingent Resource  Considerable upside in ATP 744P still untested  Lake Galilee

14. Slide 14: Galilee Basin – Commercial Options

    Galilee Basin – Commercial Options  For personal use only 3 different market segments emerging for commercial development:  Coal mine users  Power producers  LNG market Coal Mining Projects  Stage 1 Development: Power for Coal Adani Mines / Local generation Vale  Up to 1,500 MW energy demand j

15. Slide 15: Section 4: Gunnedah Basin

    For personal use only Section 4: Gunnedah Basin ASX Code : COI www.cometridge.com.au 15

16. Slide 16: Gunnedah Basin – background

    For personal use only Gunnedah Basin – background  Large area covering central northern NSW  Overlain by Surat Basin in north  Key towns include Narrabri, Moree and Gunnedah  Land use is grazing, forestry and cropping:  Cotton, wheat, sorghum and other  Oil recoveries and conventional gas flow

17. Slide 17: Gunnedah Basin

    For personal use only Gunnedah Basin  After a long period of uncertainty, NSW Government released a number of policies last month after significant consultation and consideration  Exploration and Production companies subject to an unprecedented level of scrutiny and regulation  Santos / TruEnergy

18. Slide 18: Gunnedah Basin – PELs 6, 427 & 428

    For personal use only Gunnedah Basin – PELs 6, 427 & 428  Comet Ridge substantial position of 13,000 km2  40% PEL 428  25% PEL 427  Recently announced acquisition of further interests in these permits. On completion Comet Ridge‟s interest will be:  60% PEL 428  50% PEL 427  22.5% PEL 6  This

19. Slide 19: Section 5: Community

    For personal use only Section 5: Community ASX Code : COI www.cometridge.com.au 19

20. Slide 20: Responsible CSG Development

    For personal use only Responsible CSG Development  CSG industry has been operating in Queensland for >15 years  CSG industry in Eastern Australia is one of the most heavily regulated industries in Australia  CSG explorers and producers need to work in an increasingly complex regulatory system  Q

21. Slide 21: Eastern Galilee Basin – Well Design

    For personal use only Eastern Galilee Basin – Well Design  Permian Betts Creek coals lie well below aquifer units  Wells drilled to a high technical standard (required to meet CSG code as a minimum)  geological zones isolated via steel casing and cement  Exploration well pads quickly returned to

22. Slide 22: Galilee Basin Operators Forum (GBOF)

    For personal use only Galilee Basin Operators Forum (GBOF)  Informally started by a group of companies 2 years ago to undertake a basin-wide study of aquifers and historical water production  10,400 licenced water bores and 120 year history  GBOF has also then become involved in providing informa

23. Slide 23: Case Study: Wells & Agriculture Can Co-exist

    Case Study: Wells & Agriculture Can Co-exist For personal use only Qld NSW Texas Area („000 sq km) 1,731 802 696 Gross Farm Product* ($B) 9.1 8.3 9.7 Petroleum Wells 7,000 249 218,556 *Source: ABS 1367.0 State and Terr Stat Indicators for 2009/10; 2009 Texas Agriculture Statistics, USDA Source APPEA

24. Slide 24: Section 6: Conclusions

    For personal use only Section 6: Conclusions ASX Code : COI www.cometridge.com.au 24

25. Slide 25: Galilee & Gunnedah Basins

    For personal use only Galilee & Gunnedah Basins  Large basins with extremely large petroleum exploration blocks  After current acquisition in NSW, Comet Ridge will hold approx 32,000 km 2  Lightly explored to date  Permian coals are the main targets and are significantly deeper than shallower aq

26. Slide 26: Comet Ridge Extremely Well Positioned

    For personal use only Comet Ridge Extremely Well Positioned Comet Ridge has a large resource base and exposure to significant upside in two key east Australian basins where there is increasing demand for gas, significant new markets and prices moving upwards ASX Code : COI www.cometridge.com.au 26

27. Slide 27: Important Notice and Disclaimer

    For personal use only 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 onl

28. Slide 28: Comet Ridge Limited

    Comet Ridge Limited For personal use only www.cometridge.com.au Address Level 1 283 Elizabeth Street Brisbane 4000 & GPO Box 798 Brisbane 4001 Telephone: +61 7 3221 3661 Facsimile: +61 7 3221 3668 Email: info@cometridge.com.au ASX Code : COI www.cometridge.com.au 28

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