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www.cometridge.com.au ASX Code : COI

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Comet Ridge’s Galilee Basin Extended Production Test Project Galilee Basin Coal & Energy Conference 2013

Tor McCaul, Managing Director

25 November 2013


Introduction – Comet Ridge Limited

2

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

Quality team

Highly experienced

board and management

team

Combines technical and

commercial; CSG and

conventional; upstream

and downstream

capability

Combines experience

with majors and

successful independents

Focus on reserve certification

Initially at Mahalo Block in Bowen Basin with two pilot schemes operating

Galilee Basin has significant gas resources over large area

NSW blocks also with significant resource base and large upside


Contents

3

Galilee Basin Gas Assets

Extended Production Test

Commercial Options


Section 1

4

Galilee Basin Gas Assets


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 working pilot in the basin

Significant coal mine province

evolving in the shallow coals in

the east

Galilee Basin – Background

5


Eastern Basin Geology

6

Betts Creek coals – Permian

in age

Up to 6 individual seams

Thick, continuous coals

deposited over very large area

Coals shown as gas bearing

and permeable

Coal sub-crops in the east

and dips to the west

Net Coal thickness in eastern

basin generally 15 to 40m

Very large gas volumes in

place


Systematic Path to Reserves


Galilee Basin Significant Independent Resource Booking

Resources Independently Certified

8

Gunn Project Area 3C Gas Resources are material in size (1,870 PJ) and 100% COI


Large position – almost

13,000km2 (0.7% of QLD)

ATP743

100% equity

12 year term effective

September 2009

~6476km2

ATP744

100% equity

12 year term effective

October 2009

~6515km2

Galilee Exploration History

9

2009 Petroleum Exploration Original Tenure Award


Drilling Program Objectives

Confirm coal thickness, depth

and continuity

Quantify gas content at various

depths

Quantify coal permeability at

various depths

Obtain water samples from the

Betts Creek coals

Better understand Galilee

depositional architecture


10

2009-10 Exploration Program


5 well exploration program

Total drilled section 5010m

Coal thickness ranged from 16m

to 24m with up to 22m of shale

Over 1000m core cut & 10

drillstem (flow) tests

Significant laboratory coal

analysis

Gunn Project Area average gas

content 4.3 m3/t (high 7.3 m3/t)


11


Outcome: focus on south-west region – Gunn Project Area


Seismic Program Objectives

Confirm coal continuity

Improve understanding of

structural features

Define project area

252km 2D seismic survey

First modern 2D seismic in these

blocks

Excellent image quality in Betts

Creek Beds

Improved understanding of the

structural nose controlling gas

content and permeability


12

2011 Gunn 2D Seismic Survey

Top Permian

Gunn 2011-03


2012 farm-in to southern part of

ATP1015P held by QER

Access to additional 825km2

Creates continuous acreage area,

extending Gunn Project area to the

east

Three stages to allow equity up to

75%

Stage 1 completed- two appraisal

wells in Farm-in Area earning 20%

equity


13

1015P Farm-in Area


3 well exploration and appraisal

program

Gunn 2 drilled in ATP744 Gunn

Project Area

16.2m net coal

Four coal intervals tested –

demonstrated good to excellent

productivity

2 wells – ATP1015 Farm-in area

20 to 23 m net coal

Good gas content and permeability


14


Confirmed extension of Gunn Project Area to the east


5 coal seams intersected

depth to coal 700-1000m

>16m net coal

gas contents >4m3/t

good permeability within

target coals

Gunn Project Area

15

Gunn Project Area

Gunn Project area

and Farm-in area

coals contain

recoverable gas over

an estimated area of

1865km2


3 historic petroleum wells within

ATP 743 and ATP 744 recovered

oil and/or gas from Lake Galilee

Sandstone at base of Galilee Basin

Carmichael 1 well flowed gas to

surface from deeper sandstone

intervals

Evidence of active petroleum

system over the Koburra Trough

Potential for additional oil and gas

resources

Additional Gas Potential

16

Conventional and Unconventional Potential

• GTS – recovered gas to surface

• OTS – recovered oil to surface

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Section 2

Gunn 2 Extended Production Test


Nov 2012 -Gunn 2 completed for

production

Nov to Jan 2013 - Surface facilities

installed - water storage tanks,

flowlines, metering facilities and

power generation

Jan 2013 –commissioned for

operation

EPT Objectives

Establish connectivity with coals

(i.e. completion methodology)

Obtain water samples

Gunn 2 Extended Production Test (EPT)

18

Gunn 2 - EPT


Gunn 2 – Production Well Design

Betts Creek Coals sit well below Great Artesian Basin units

Steel casing run and

cemented in place

with cement returns

all the way back to

surface

This allows flow into

the well of only the

selected zone(s)

For Gunn 2, only 4

metres of coal

perforated and

flowed into the well

for pumping to

surface


Perforated over four

metre interval - C1 coal

seam only

Seam isolated above

and below by

impermeable mudstone

Designed to ensure

water only produced

from Betts Creek

reservoir coal

Gunn 2 – Extended Production Test

20

Gunn 2 - EPT


Water rate progressively

increased over several weeks

Stabilized water production rate

of 400 bwpd

Reached limit of pumping

equipment

Pressure analysis indicate four

metre coal interval has greater

flow capacity

Formation water samples taken

for analysis

Water found to be good quality

Evaluating methods of formation

water treatment

Well set up for long term

production

Gunn 2 – production test

21

Gunn 2 – EPT results

Success

• Effective completion style

• Connecting wellbore to fractures in coal

• Isolating coal seam from permeable

sandstones

• Formation water samples collected


Gunn 2 – Extended Production Test

22


Agricultural Groundwater

predominantly sourced from

Clematis Group

Moolayember Formation

Alluvium and colluvium

Nil sourced from Betts Creek

beds

Clematis Group and

Moolayember Formation are

intake beds for GAB

Betts Creek beds sit hundreds

of metres below GAB

Groundwater

23

Groundwater over ATP’s

>300m separation between GAB and Betts Creek beds

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Section 3

Commercial Options


Tightening Eastern Australia Gas Market

25

4 large LNG consortia control

almost 90% of 2P CSG reserves

in Eastern Australia

Intensifying competition for

future gas reserves, driven by

LNG growth

Increasing pressure on

domestic gas supply and

pricing

Gas producers writing new

contracts at the higher end of a

A$6-9/GJ range and prices are

forecast to continue to rise

Qld Gas Market Advisor

forecasts a domestic supply

constraint 2015-2020 if supply

situation does not improve

Qld domestic gas demand and projected

gas demand for LNG exports

CSG 2P Reserves,

February 2013

42,776 PJ LNG proponents

AGL

Other

88%

5% 7%

Source: RLMS

Source: 2012 Gas Market Review Queensland (Queensland Government)


Different market segments

emerging for commercial

development: coal, power, LNG

Development option 1: Power for

coal mines / local generation

Galilee Basin – Commercial Options

26

Galilee Basin market

opportunities


Development option 2:

Gas supply to LNG

projects at Gladstone

Development option 3:

Domestic gas supply via

Barcaldine

Galilee Basin – Commercial Options

27

Galilee Basin market

opportunities


Comet Ridge has built significant

eastern basin experience and

understanding, positioned within

reach of markets

Large CSG resources

independently certified and deeper

sandstone gas present

Pilot scheme is the key next step

with the aim of conversion of

resources to reserves

Gas could be directed to power

generation, LNG manufacture or

domestic gas markets

To Summarise……..

28


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 only. Shareholders and investors should undertake their own evaluation of this information and otherwise contact their professional advisers in the event they wish to buy or sell shares. To the extent the information contains any projections, Comet Ridge has provided these projections based upon the information that has been provided to Comet Ridge. None of Comet Ridge or its directors, officers or employees make any representations (express or implied) as to the accuracy or otherwise of any information or opinions in the Presentation and (to the maximum extent permitted by law) no liability or responsibility is accepted by such persons.

Summary information

This Presentation contains summary information about Comet Ridge and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Comet Ridge’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au.

ASX Releases

Investors are advised that by their nature as visual aids, presentations provide information in a summary form. The key information on detailed Resource statements can be found in Comet Ridge’s ASX releases. Resource statements are provided to comply with ASX guidelines but investors are urged to read supporting information in full on the website.

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements, opinions and estimates are not guarantees of future performance.

Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains such statements that are subject to known and unknown risks and uncertainties and other factors, many of which are beyond the control of Comet Ridge, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Such forward-looking statements are relevant at the date of this Presentation and Comet Ridge assumes no obligation to update such information.

Investment risk

An investment in Comet Ridge shares is subject to investment and other known and unknown risks, some of which are beyond the control of Comet Ridge. Comet Ridge does not guarantee any particular rate of return or the performance of Comet Ridge. Persons should have regard to the risks outlined in this Presentation.

Competent Person Statement

The gas resource estimates for ATP 774P, ATP 337P, PMP 50100 and PMP 50279 provided in this statement were determined by Mr John Hattner of Netherland, Sewell and Associates Inc, Dallas, Texas, USA, in accordance with Petroleum Resource Management System guidelines. Mr Hattner is a full-time employee of NSAI, and is considered to be a qualified person as defined under the ASX Listing Rule 5.11 and has given his consent to the use of the resource figures in the form and context in which they appear in this presentation.

The resource estimates for PEL 6, PEL 427 and PEL 428 referred to in this presentation were determined by Mr Timothy L. Hower of MHA Petroleum Consultants LLC in accordance with Petroleum Resource Management System guidelines. Mr Hower is a full-time employee of MHA, and is a qualified person as defined under the ASX Listing Rule 5.11. Mr Hower consented to the publication of certain resource figures which appeared in the announcement of 7 March 2011 made by Eastern Star Gas Limited (ASX:ESG) and any reference and reliance on the resource figures for PEL 6, PEL 427 & PEL 428 in this presentation is only a restatement of the information contained in the ESG announcement.

Important Notice and Disclaimer

29


Comet Ridge Limited Contact Level 3

283 Elizabeth Street

Brisbane 4000

www.cometridge.com.au

30

GPO Box 798

Brisbane 4001

Telephone:

Facsimile:

Email

+61 7 3221 3661

+61 7 3221 3668

[email protected]

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