Comet Ridge Ltd · ASX:COI

Comet Ridge — Investor Presentation (July 2013)

34 slides from Comet Ridge's investor presentation, Jul 31, 2013

1. Slide 1: Capital Raising Presentation

   For personal use only Capital Raising Presentation 31 July 2013 www.cometridge.com.au ASX Code : COI www.cometridge.com.au

2. Slide 2: Contents

   For personal use only Contents  Company Overview  Mahalo Project Update  Capital Raising  Investment Risks and Foreign Selling Restrictions  Appendix: Portfolio Projects ASX Code : COI www.cometridge.com.au 2

3. Slide 3: Company Overview

   Section 1: For personal use only Company Overview ASX Code : COI www.cometridge.com.au 3

4. Slide 4: Comet Ridge Limited

   For personal use only Comet Ridge Limited Strategic CSG assets  Large resource and equity positions  Multi-basin exposure  Significant 3C Resource base  Domestic and export market opportunities  Tightening east Australian gas market Focus on reserve certification  Two pilot schemes operating a

5. Slide 5: Comet Ridge – Corporate Overview

   For personal use only Comet Ridge – Corporate Overview Capital structure (ASX:COI) 12 month trading history Share price (as at 29 July 13) $0.23 Shares on issue 408.1m (prior to Placement) Market capitalisation1 $93.9m Cash (as at 30-Jun-13) $4.7m Enterprise value1 $89.2m Source: IRESS 1. Excludes 2

6. Slide 6: Comet Ridge – Corporate Overview: Board

   For personal use only Comet Ridge – Corporate Overview Board James McKay  25 years in business (commerce/law background) Non-Exec Chairman  Former Chairman, Sunshine Gas Tor McCaul  Petroleum engineer with 25 years in upstream and Managing Director downstream oil & gas Chris Pieters  Geologist w

7. Slide 7: Net Gas Resources

   For personal use only Net Gas Resources  Significant independent Resource bookings in four areas Comet Ridge Limited – Net Recoverable Resources Location Project COI Contingent Contingent Prospective Interest Resource Resource (3C) Resource (2C) (PJ) (PJ) (PJ) Bowen Basin, Mahalo Project (ATP 337P)

8. Slide 8: Key Achievements - Past Months

   For personal use only Key Achievements - Past 12 Months PRIORITY PROJECT PORTFOLIO PROJECTS MAHALO GALILEE GUNNEDAH  Pilot drilling completed  3 well appraisal drilling  Progressively at Mahalo and Mira programme increasing equity in  Both pilot schemes  Successful Gunn-2 Gunnedah blocks to ope

9. Slide 9: Tightening Eastern Australia Gas Market

   Tightening Eastern Australia Gas Market  4 large LNG consortia control For personal use only Qld domestic gas demand and projected almost 90% of 2P CSG reserves gas demand for LNG exports in Eastern Australia  Intensifying competition for future gas reserves, driven by LNG growth  Increasing pres

10. Slide 10: Mahalo Project Update

    Section 2: For personal use only Mahalo Project Update ASX Code : COI www.cometridge.com.au 10

11. Slide 11: Mahalo Project (ATP 337P) – Background

    For personal use only Mahalo Project (ATP 337P) – Background  Located in the Denison Trough (Bowen Basin), 240km west of Gladstone  Close to infrastructure linking to Gladstone  JV partners APLNG and Santos participate in two of the Gladstone LNG projects  JV operational focus on running the two

12. Slide 12: Mahalo Project Pilots – Work Completed

    For personal use only Mahalo Project Pilots – Work Completed ATP 337P (COI 35%, Stanwell 5%, APLNG 30%, Santos 30%)  Mahalo and Mira pilot wells drilled July 2012 and January 2013  Permeabilties in the hundreds of mD measured  Confirms pilot areas are highly productive  Construction of Mahalo an

13. Slide 13: Mahalo Field Pilot

    For personal use only Mahalo Field Pilot  Mahalo Field Pilot scheme on-line from April 2013  Recent pressure build-ups exhibited lower productivity than when initially measured in 2012  Indicating ineffective completion practices  Bowen Basin coals can be highly sensitive to drilling fluids  JV

14. Slide 14: Mira Field Pilot

    For personal use only Mira Field Pilot  3 of the 4 wells (Mira 2, 4 and 5) at Mira Field Pilot scheme commenced pumping from June 2013  Initial water rates encouraging with minimal pressure drawdown  Recent pressure build-ups confirmed the generally high productivities measured at the time of dri

15. Slide 15: ATP 337P Mahalo Agreement with Stanwell

    For personal use only ATP 337P Mahalo Agreement with Stanwell  In Sept 2011, COI/Stanwell option agreement whereby Stanwell can Range of Qld long-term ex-field gas acquire COI 35% interest in Mahalo: contract price outcomes ($/GJ)  First 15% interest for A$0.80/GJ per 2P reserve  Additional 20% i

16. Slide 16: FY2014 Mahalo Project Work Programme

    For personal use only FY2014 Mahalo Project Work Programme  COI cash calls to date have been fully funded by Stanwell  FY2014 work programme:  Pumping operations to continue at both pilots  The JV is finalising plans for work-overs (to be operated by Santos) • Initially at the Mira 3 well so pum

17. Slide 17: Capital Raising

    Section 3: For personal use only Capital Raising ASX Code : COI www.cometridge.com.au 17

18. Slide 18: Offer Details

    For personal use only Offer Details Offer Structure Institutional Placement to raise up to A$9 million by issuing 50 million shares (~12% of the issued capital) Pricing Issue price of A$0.18 per share Represents a discount of:  21.7% to last close on 29 July 2013 of $0.23  21.1% to the 5-day VWAP

19. Slide 19: Use of Proceeds FY2014

    For personal use only Use of Proceeds FY2014 Sources Uses Mahalo work-overs and Cash at 30 June 2013 A$4.7m A$5.0m operations Institutional Placement A$8.4m Other portfolio projects A$1.0m (net proceeds) Corporate and technical A$4.0m team costs Working capital A$3.1m Total Sources A$13.1m Total Use

20. Slide 20: Investment Highlights

    For personal use only Investment Highlights Strategic  Large resource and equity positions assets  High priority Mahalo Project with highly productive coals close to Gladstone market  Significant 3C Resource base Experienced  Board and management team combines technical and team commercial; CSG

21. Slide 21: Investment Risks and Selling Restrictions

    Section 4: For personal use only Investment Risks and Selling Restrictions ASX Code : COI www.cometridge.com.au 21

22. Slide 22: Investment Risks

    Investment Risks There are various risks associated with investing in Comet Ridge, as with any stock market investment and, specifically, because of the nature of Comet Ridge’s exploration For personal use only  business and the present stage of development of Comet Ridge’s operations. Potential in

23. Slide 23: Investment Risks (cont'd)

    For personal use only Investment Risks (cont’d)  The rate at which gas flows from Comet Ridge’s wells will be a determinant of its profitability. There is a risk that gas flow rates from Comet Ridge’s wells will not Gas flow rates be sufficient to meet the requirements of future gas supply contract

24. Slide 24: Investment Risks (cont'd)

    For personal use only Investment Risks (cont’d)  The Clean Energy Act 2011 (Cth) (CEA) introduced a mandatory carbon pricing mechanism for certain large carbon emitters and natural gas suppliers in Australia. The price was fixed by the Commonwealth government on 1 July 2012. On 16 July 2013, the cu

25. Slide 25: Investment Risks (cont'd)

    For personal use only Investment Risks (cont’d)  Comet Ridge, in order to meet future ongoing work programs, will likely require additional capital (via asset sales, farm-ins, equity, etc). There can be no assurance that sufficient capital funding will be available to Comet Ridge on favourable term

26. Slide 26: Foreign Selling Restrictions

    Foreign Selling Restrictions The contents of this Presentation have not been reviewed or approved by any regulatory authority in Hong Kong. The information in this Presentation has not been, and will not be, For personal use only registered as a prospectus in Hong Kong under the Companies Ordinance

27. Slide 27: Appendix: Portfolio Projects

    Appendix: For personal use only Portfolio Projects ASX Code : COI www.cometridge.com.au 27

28. Slide 28: Galilee Basin – Background

    For personal use only Galilee Basin – Background  Large area (~250,000km2) covering a big part of central western Queensland  Overlain by Eromanga Basin and underlain by Drummond Basin  Land use is grazing – cattle and sheep  Oil recoveries and conventional gas flows over a number of years  One

29. Slide 29: Galilee Basin – Greater Gunn Project Area

    For personal use only Galilee Basin – Greater Gunn Project Area ATP 743P, ATP 744P and Galilee Farm-in  100% interest in 13,000 km2 plus up to 75% interest in Farm-in Area (825 km2), operated by COI  5 initial wells (2010) and 2D Seismic acquisition programme (2011)  1,870 PJ of 3C Contingent Res

30. Slide 30: Galilee Basin – Commercial Options

    For personal use only Galilee Basin – Commercial Options Galilee Basin market opportunities  Different market segments emerging for commercial development: coal, power, LNG  Development option 1: Power for coal mines / local generation  Development option 2: Gas supply to LNG projects at Gladston

31. Slide 31: Gunnedah Basin – Background

    For personal use only Gunnedah Basin – Background  Large area covering central northern NSW  Overlain by Surat Basin in north  Land use is grazing, forestry and cropping  Oil recoveries and conventional gas flows over a number of years  Several working pilots in the basin  Permian Blackjack an

32. Slide 32: Gunnedah Basin – Regional Activity

    Gunnedah Basin – Regional Activity Gunnedah Basin permits and infrastructure For personal use only  Significant investment has been made in the basin (ESG, Santos, EnergyAustralia) and material reserves delineated  NSW Government policy has recently curtailed exploration in NSW within two km of to

33. Slide 33: 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

34. Slide 34: Comet Ridge Limited Contact

    Comet Ridge Limited For personal use only Contact Level 3 GPO Box 798 Telephone: +61 7 3221 3661 283 Elizabeth Street Brisbane 4001 Facsimile: +61 7 3221 3668 Brisbane 4000 Email info@cometridge.com.au www.cometridge.com.au ASX Code : COI www.cometridge.com.au 34

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