COMET RIDGE LIMITED - ASX: COI

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Comet Ridge Limited is a publicly-listed Australian energy company focused on Coal Seam Gas (CSG) exploration and appraisal. Based in Brisbane, Comet has tenement interests and a suite of prospective projects in Australia and New Zealand and an investment in a joint venture company based in the United States.

The Company is focused on creating shareholder value through the discovery, certification and commercialisation of CSG reserves amid increasing domestic and international demand for gas as a source of clean, greenhouse-friendly energy. The Company has strong technical skills, an experienced Board and management team with a track record of success and the cash resources required to undertake accelerated work programs at its key Galilee Basin and Mahalo projects in Queensland and Greymouth project in New Zealand.

ATP 743P & ATP 744P Galilee Basin - Queensland

Comet Ridge has a 100% interest in two adjacent permits on the eastern flank of Queensland’s Galilee Basin, ATP 743P and ATP 744P. These permits have a combined area of 12,991 sq km, and even with the recent Comet Ridge exploration drilling activities this area can only be described as sparsely explored to date.

Comet Ridge has drilled five wells in these two permits since the company was awarded the permits in late 2009. The most promising results were obtained at Hergenrother-1 and Gunn-1 in the south west of ATP 744P, where net coals of 16m thickness were intercepted. Gas contents of 4.0 to 4.5 m3/t dry ash free (DAF) were recorded in this area, and drillstem testing has confirmed that the coals are permeable.

ATP 337P Mahalo Project - Queensland

Comet Ridge’s ATP 337P Mahalo asset is located in the Denison Trough area of Queensland’s Bowen Basin near Rolleston, and covers an area of 989 sq km. Comet Ridge has a 40% interest in ATP 337P Mahalo.

Eleven wells have been drilled in the ATP 337P Mahalo to date, with six of these drilled since Comet Ridge was assigned its interest in 2004. Results from wells drilled within the ATP 337P Mahalo permit have shown favourable gas contents, gas saturations and net coal parameters. Permeability data within the permit is limited, but good permeability has been demonstrated in several wells.

It is Comet Ridge’s objective to establish 2P and 3P Reserves at ATP 337P Mahalo over the next twelve months. To deliver on this outcome the ATP 337P Mahalo Joint Venture is planning a multi-well appraisal programme for 2011, including a Pilot Project. Success in the 2011 appraisal programme is expected to result in an additional Pilot Project in 2012, followed by additional core holes to further delineate the extent of the coals.

PEL 427 - New South Wales

PEL 427 is located in northern New South Wales, immediately north of Eastern Star Gas’ Narrabri Gas Project and Wilga Park Power Station in PEL 238 permit. Comet Ridge has a 25% interest in PEL 427, which covers an area of 7,010 sq km. Eastern Star gas announced on 7 March 2011 an initial resource booking for PEL 427, which was assessed by independent reserves certifiers MHA Petroleum Consultants LLC. Resources have been booked in the Late Permian Black Jack Seam and the Early Permian Maules Creek Seam in the south of the permit, and the Early Cretaceous Bungil Seam in the north.

PEL 428 - New South Wales

PEL 428 is located in northern New South Wales, immediately north and east of Eastern Star Gas’ Narrabri Gas Project and Wilga Park Power Station in PEL 238 permit. Comet Ridge has a 20% interest in PEL 428, which covers an area of 6,018 sq km. In 2010 Comet Ridge announced it had signed a Binding Heads of Agreement (HOA) to acquire Greenpower Energy Limited’s (ASX:GPP) 20% interest in PEL 428, lifting Comet Ridge’s stake in the Joint Venture to 40%. The transaction is expected to be completed shortly.

Greymouth – New Zealand

Mining Permit PMP50100 (Greymouth) in the West Coast coal region of New Zealand’s South Island was awarded to Macdonald Investments Ltd (MIL) in July 2007 and covers 170km². By way of a two-stage farmin process Comet (through its merger with Chartwell) is earning a 50% interest in PMP50100.

Stage 1 has been completed earning Comet Ridge a 20% interest and operatorship. This program consisted of seismic acquisition and drilling two core holes. Stage 2 (spend of NZ$6.2m) is underway and involves further seismic (already completed), two additional core holes and a three-well production pilot scheme. This phase will take Comet Ridge’s interest to 50% with an option to increase to 60%.

Buller Block - New Zealand

PEP50279 (Buller Block) was granted on April 2008 for a period of five years to a joint venture between Chartwell NZ Pty Ltd (60%) and MIL (40%). The permit covers an area of 8,722km² over much of the onshore Westland Basin.

Painkiller Creek-1C exploration core well drilled in March 2009, near Reefton in the West Coast region of the South Iisland. The well was designed to assess the development of the Eocene age Brunner coal measures. The core hole found a lack of coal development but fulfilled Year 1 exploration commitments on the permits. Further exploration will be undertaken in 2010 following the completion of further studies incorporating these results.

North Waikato Block – New Zealand

PEP50280 was also granted for a period of five years to the Chartwell Energy (60%) and MIL (40%). It covers an area of 3,667km² over much of the North Waikato coalfields and the Hauraki Gulf for the purposes of exploring for CSG. The location of PEP50280 is close to the major population centres of New Zealand’s North Island and adds to the block’s appeal. Power and pipeline infrastructure exist in the Western part of the permit. Solid Energy’s Huntly CSG project lies to the South and the large Huntly gas-fired power station is nearby.

In February 2009 the Matata-1C exploration well was drilled to a total depth of 472 metres and encountered a thicker than expected sedimentary sequence, however, with poor coal development. The well was plugged and abandoned. The Matata-1C was the first exploration well drilled by Chartwell in PEP50280.

Mine For

oil, gas, coal seam gas

Location of operation(s)

Queensland, New South Wales, New Zealand

Australian Basins

Galilee, Bowen

Address

Level 1, 283 Elizabeth Street
BRISBANE, QLD, AUSTRALIA

Phone

+61 7 3221 3661

Email

Website

http://www.cometridge.com.au

Last Updated

13/04/2011