Comet Ridge Ltd · ASX:COI
Comet Ridge — Shareholder Meeting (November 2008)
25 slides from Comet Ridge's shareholder meeting presentation, Nov 14, 2008
Slide 1: Comet Ridge Limited
For personal use only Comet Ridge Limited
Slide 2: 2008 Objectives
2008 Objectives For personal use only • USA • Funding F di • Establish production & cash flow • Strengthen team • Australia • Re-establish management presence • Finalise Galilee Basin Native Title • Secure funding g (project (p j and/or corporate) p )
Slide 3: Accomplishments
Accomplishments For personal use only • 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 o
Slide 4: Funding of US Activities
Funding of US Activities For personal use only • $100 million line of private equity • Pine Brook Road Partners, LLC • Highly reputable NY based private equity firm headed by Howard Newman • Highly experienced & successful investment team • Pine Brook is invested in 4 oil & gas companies in addition
Slide 5: Elements of US Deal
Elements of US Deal For personal use only • New JV Company formed All US$ • Comet Ridge Resources, LLC (CRR) • Comet Ridge Ltd contributed assets valued $7MM • Pine Brook contributed cash and assets valued at $9MM • Initial I iti l ownership hi COI ~44%, 44% Pine Pi Brook B k ~56% 56% • Current owne
Slide 6: Corporate Structure
For personal use only Corporate Structure
Slide 7: Priority US Projects
Priority US Projects For personal use only Grays Harbor Florence
Slide 8: US Business is a Race
US Business is a Race For personal use only • US oil business is intensely competitive • Company is intent on building its business • g prospective Securing p p leases is a race with others • CRR’s CRR s ability to compete and create value is based on managing competitively sensitive information • T
Slide 9: Florence Results
Florence Results For personal use only •3 wells currently producing ~ 127 BOPD •Oil in Codell Formation at Bull Well Target Result Golden Pierre Fm Producer Apache Pierre Fm Producer R i b Rainbow Pi Pierre F Fm P d Producer Bull Deeper Pay Temp Aban.
Slide 10: Florence Looking Forward
Florence Looking Forward For personal use only • 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
Slide 11: Grays Harbor
Grays Harbor For personal use only • 420,000 acre lease option ti extended t d d • 50,000+ acres leased • 3D seismic complete • 2D seismic underway • Drilling planned for ‘09
Slide 12: Australian Strategy
Australian Strategy For personal use only • Coal seam gas growth strategy • Built around existing CSG project portfolio • Establish QLD based management team • Maintain M i t i control t l off Galilee G lil Basin B i viai operatorship t hi • Prove up significant coal seam gas resource in the Galilee
Slide 13: Australian Projects
Australian Projects For personal use only Comet Ridge retains significant ATP’s 743 & 744P Interests in QLD & NSW Galilee Basin • Mahalo (COI: 40%) • Internal resource estimate exceeds 1 TCF of gas in place • Further drilling required Mahalo • ATP’s 743 & 744P (COI:100%) Bowen Basin • Comet operator
Slide 14: Galilee Basin
Galilee Basin For personal use only • Located central QLD • COI 100% • ATP’ 743P & 744P ATP’s • 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
Slide 15: Industry Interest
Industry Interest For personal use only • Strong industry interest Map shows successful 2008 bidders in 2008 permit tender • Comet Ridge was unsuccessful with an aggressive agg ess e bid b d on o one o e permit • Most of the Galilee Basin now leased
Slide 16: Strong Gas Indications
Strong Gas Indications For personal use only • Very limited gas content data Gas Readings • Mud-log shows suggest coals are gas bearing • Sands bleeding gas in Fleetwood-1 is encouraging Coal beds shown in black Gas detected during drilling At Rodney Creek • Galilee Energy reported a median gas cont
Slide 17: Resource Potential
Resource Potential For personal use only Permit Permit Net area Coal Density Coal Gas GIP GIP area top coal thickness (mill. content (m3x106) (TCF) (k 2) (km @ ( ) (m) t tonnes) ) ( 3/t) (m <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
Slide 18: Mahalo
Mahalo For personal use only • Located central Eastern QLD • Covers 1,100 sq km • COI 40% • Santos and Origin 30% each • COI funded 5 holes – fully earned • Contingent gas resource ~ 1 TCF* • No work since Mahalo 2 Mahalo Bowen Basin • Bandanna Fm coals the target g • Coals proven to be gas bearing
Slide 19: Mahalo
Mahalo For personal use only 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 iin place l Source: Santos ASX Announcement May 29, 2008
Slide 20: Mahalo - Activity to Date
Mahalo - Activity to Date For personal use only • 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 ffunded
Slide 21: Gunnedah Basin, NSW
Gunnedah Basin, NSW For personal use only • Located Northern NSW • PEL’s 427 & 428 • Both permits renewed recently • COI farmed out to Orion/ESG • 1 core hole on each permit to be drilled by y end ‘08 QLD NSW Eastern Star CSG projects
Slide 22: Recent CSG Transactions
Recent CSG Transactions For personal use only
Slide 23: Response to Market Challenges
Response to Market Challenges For personal use only • 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 director’s
Slide 24: Summary
Summary For personal use only • 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 S project j t and/or d/ corporate t capital it l - market k t conditions have slowed progress but
Slide 25: Disclaimer
Disclaimer For personal use only This Investor Update Presentation does not constitute an offer to or a solicitation from any person receiving g it ((the “Recipient”). p ) The delivery y of this Investor Update p Presentation does not indicate that Comet Ridge Limited (together with its subsidiaries