Slide 1: Comet Ridge Limited Investor Presentation
For personal use only Comet Ridge Limited Investor Presentation 14 May 2009
Slide 2: Contents
Contents 1 For personal use only 1. Executive Summary 2. Merger with Chartwell Energy 3. Corporate Overview 4. Key Projects 5. Secondary Projects 6. Risks 7. Milestones – Next 12 to 18 Months 8. Capital Raising 9. Investment Highlights
Slide 3: Executive Summary
Executive Summary 2 For personal use only > Comet Ridge Limited (Comet) is a Brisbane based Coal Seam Gas (CSG) company with projects in Australia, New Zealand and an investment in the United States > Recent merger with Chartwell Energy brings financial, technical and managerial strength to the comp
Slide 4: Merger with Chartwell Energy
Merger with Chartwell Energy 3 For personal use only > The merger between Comet and Chartwell Energy was announced on 9 February 2009 and approved by Comet shareholders on 16 April 2009 > Chartwell shareholders in aggregate own 55% of the merged entity > The merger has: > Enhanced Comet’s existing b
Slide 5: Corporate Overview
Corporate Overview 4 For personal use only Capital Structure – ASX: COI 12 Month Share Price Performance Share price $0.50 6,000 $0.45 (as at 13 May 2009) $0.45 5,000 $0.40 Shares on issue (million) 234.1 $0.35 4,000 $0.30 Unlisted options (million) 33.3 $0.25 3,000 Undiluted market cap1: $105.3m $0
Slide 6: Comet Management and Board
Comet Management and Board 5 For personal use only Management: Board of Directors: Tor McCaul Jeff Schneider Managing Director Non-Executive Chairman 21 years oil and gas experience and previous 30 years oil and gas industry experience including CEO of Chartwell Energy 23 years with Woodside Petrole
Slide 7: Comet Strategy and Objectives
Comet Strategy and Objectives 6 For personal use only > To grow the value of our CSG business over the medium to long-term through exploration with material positions in key basins > Comet believe there are good commercialisation opportunities in the medium to long-term gas market – gas supply to LN
Slide 8: Key Projects – Galilee Basin
Key Projects – Galilee Basin 7 For personal use only > Two blocks (ATP’s 743P & 744P) located in the Galilee Basin in central QLD > Comet holds 100% and is operator in both > Large tenement position – 13,000 km2 > Potentially 36 TCF Gas in Place (GIP)* > Focused on eastern flank of basin, where coal
Slide 9: Key Projects – Basin Comparison
Key Projects – Basin Comparison 8 For personal use only > Galilee Basin largest coal basin in Queensland > Permits being awarded – increased interest – significant bidding recently > Recent 50% farm-in by AGL to Galilee Energy’s assets for A$37m > Key technical comparison with other Queensland coal
Slide 10: Key Projects – Galilee Basin (cont.)
Key Projects – Galilee Basin (cont.) 9 For personal use only > Approximately 170km to Moranbah providing potential access to the Townsville market and Gladstone (via proposed Moranbah to Gladstone Pipeline) > Approximately 500km to Gladstone – similar distance from Wallumbilla to Gladstone (QGP) > B
Slide 11: Key Projects – Galilee Basin (cont.)
Key Projects – Galilee Basin (cont.) 10 For personal use only > Work program includes: > Finalise Native Title at ATP 744P; > Complete EPA process and achieve award of ATP 743P and 744P; > Complete geological integration of data and plan well locations; and > Drill up to eight core holes in key targ
Slide 12: Key Projects – Mahalo
Key Projects – Mahalo 11 For personal use only > Located central Eastern QLD > Covers 1,100 km2 > Comet holds 40% with Santos (operator) and Origin 30% each > Prospective resource approximately 1 TCF in place* > Adjacent to “Greater Fairview” > Close to pipeline infrastructure > Coals proven to be g
Slide 13: Key Projects – Mahalo (cont.)
Key Projects – Mahalo (cont.) 12 For personal use only > Work program includes: > Joint Venture has approved one core hole for 2009, with potential for one to two more; and > Additional studies and core hole drilling recommended in 2009 prior to selection of pilot location which Comet is targeting f
Slide 14: Key Projects – Greymouth (NZ)
Key Projects – Greymouth (NZ) 13 For personal use only > PMP50100 – Greymouth block: > Located on the South Island near the city of Greymouth > Covers 170km² > Farming-in via a two stage exploration and appraisal program to secure 50% interest > Stage 1 completed – earned 20% interest. > Stage 2 und
Slide 15: Key Projects – Greymouth (NZ) (cont.)
Key Projects – Greymouth (NZ) (cont.) 14 For personal use only > The New Zealand electricity market is different to most international energy markets in that it is ‘energy’ not ‘capacity’ constrained > Gas demand is dominated by residential, power generation and large industrial use > Potential mark
Slide 16: Key Projects – Greymouth (NZ) (cont.)
Key Projects – Greymouth (NZ) (cont.) 15 For personal use only > Work program includes: > Joint Venture has approved two core holes by Q3 2009; and > Three pilot wells to be drilled and completed by Q1 2010 with production testing thereafter CY2009 CY2010 Qrt3 Qrt4 Qrt1 Qrt2 Qrt3 Qrt4 Drill two core
Slide 17: Secondary Projects – Gunnedah Basin
Secondary Projects – Gunnedah Basin 16 For personal use only > Located in Northern NSW > PEL’s 427 & 428 > Both permits renewed recently > Comet holds 25% and 20% interest in PEL 427 and PEL 428 respectively. ESG now farmed-in as operator and has 50% interest in PEL 427 and 40% interest in PEL 428 Q
Slide 18: Secondary Projects – New Zealand
Secondary Projects – New Zealand 17 For personal use only > PEP 50279 - Buller > 8,722km² > Located to the NE of Greymouth block > Painkiller Creek-1C exploration well drilled in March 2009 > Permit interest 60% > PEP 50280 – North Waikato > Located in the North Island near Auckland > February 2009
Slide 19: Secondary Projects – United States
Secondary Projects – United States 18 For personal use only > New JV Company formed - Comet Grays Grays Harbor Harbor Ridge Resources LLC (CRR) > $100m private equity commitment from Pine Brook Road Partners, LLC > Current ownership COI ~23%, Pine Brook ~77%. COI can elect to hold at 20% or be dilut
Slide 20: Risks
Risks 19 For personal use only Volatility of oil and gas The Company’s financial condition, operating results and future growth are dependent on the prices and markets prevailing prices for oil and natural gas production The Native Title Act 1993 (Cth) (NTA) may have an impact on the Company’s tenem
Slide 21: Milestones – Next 12 to 18 Months
Milestones – Next 12 to 18 Months 20 For personal use only > Key project milestones over the next 12 to 18 months include: CY2009 CY2010 Qrt3 Qrt4 Qrt1 Qrt2 Qrt3 Qrt4 Core management team in place Drill two core holes at Greymouth Award of Galilee Basin blocks Drill and complete core holes at Mahalo
Slide 22: Capital Raising Summary
Capital Raising Summary 21 For personal use only Offer Structure > Approximately A$7.5 million to be raised via a placement to sophisticated investors > Approximately A$13.8 million to be raised via a non-renounceable entitlement offer > Lead Manager and Underwriter - Wilson HTM Corporate Finance Li
Slide 23: Use of Funds – Up to Mid 2010
Use of Funds – Up to Mid 2010 22 For personal use only Sources of funds A$ million Uses of funds A$ million Opening cash balance (31 Mar) 6.7 Key Projects Placement 7.5 - Galilee Basin 6.5 - Mahalo 2.2 Entitlement Offer 13.8 - Greymouth 5.1 Secondary Projects 4.5 Working capital 2.0 Offer costs 1.0
Slide 24: Indicative Timetable
Indicative Timetable 23 For personal use only Placement Trading Halt Thursday 14 May Bids into placement book by Thursday 14 May, 4:30pm Announcement of the issue and lift trading halt Monday 18 May Placement settlement Thursday 21 May Placement shares commence trading Friday 22 May Entitlement Offe
Slide 25: Investment Highlights
Investment Highlights 24 For personal use only Large > 3 ATPs covering ~14,000 km2 in the Galilee and Bowen basins in Qld exploration > 9,000 km2 of prospective CSG tenements in New Zealand acreage > Extensive drilling program over the next 12 months focused on high impact Accelerated growth project
Slide 26: Disclaimer
Disclaimer 25 For personal use only Disclaimer: Wilson HTM Corporate Finance Limited, its respective servants or agents, make no recommendation as to whether you should participate in the proposed Comet Ridge Limited capital raising nor do they make any recommendation or warranty to you concerning t