Comet Ridge Limited Ph: 9225 7108Level 10, International House...

Comet Ridge Limited Ph: 9225 7108
Level 10, International House Fax: 9225 6100
26 St Georges Terrace ABN: 47 106 092 577
Perth WA 6000
Email: [email protected]
12632-1

30 May 2005
Number of Pages: 2
AUSTRALIAN STOCK EXCHANGE Via Electronic Lodgement

New Tipton West Producer On-Line at 300 MCFD & Tipton 17 Drilling Highlights: • Tipton #16 producing at 300 mcfd • Total field rate approaching 1 mmcfd • Tipton #17 drilling ahead PL198 (Comet Ridge 20%, Arrow Energy 80%) Comet Ridge Limited (ASX Code: COI) is pleased to announce that the new Tipton West Pilot producer, Tipton # 16, was brought on stream yesterday and this morning was already producing gas at a rate of 300 thousand cubic feet per day (300 mcfd) and rising. The new well was drilled to test a variation of previous completion methods which has allowed the down-hole pump to be installed below the producing coal zones allowing for greater drawdown of the well. To date, the pump has only been brought on at low pump speed and will be gradually increased in the coming days. Total gas production from the pilot is now approaching 1 million cubic feet per day. A new appraisal well Tipton #17 is currently being drilled between the pilot and the TPW 4 monitoring well which lies some 7km to the north. This well is designed to confirm pressure communication over a large area and in doing so will facilitate the conversion of some of the Possible reserves into the Probable category.
The Tipton West Pilot is located in the Surat Basin approximately 20 km south of the township of Dalby in Queensland. Comet Ridge recently announced reserves certification on the Tipton field by Netherlands, Sewell and Associates of Dallas, Texas. The certification resulted in 1P, 2P and 3P reserves of 61 PJ, 143 PJ and 2028 PJ respectively. The field currently has gas sales Memoranda of Understanding (MOU) with customers ERM/Babcock & Brown, BP and Ergon Energy for a total of 123 PJ amounting to gas sales of 10.2 PJ p.a. Financial close for the project is scheduled for September this year with first gas sales approximately 12 months later. For further information, please contact: General Enquiries Media Enquiries Andy Lydyard Vic Palanyk Tony Dawe Managing Director General Manager Ward Holt Comet Ridge Limited Comet Ridge Limited Ph: (08) 9221 8722 Phone: (08) 9225 7108 Phone: 0407 889 569 Mob: 0413 322 110 Fax: (08) 9226 6100 Fax: (07) 3357-6936 Nomenclature: The oil and gas business commonly uses a mix of imperial and metric measures. In Australia and other metric countries, gas reserves are typically quoted as Petajoules or PJ which is a metric measure of energy. Due to strong influences from the US oil and gas business which employs the Imperial system, produced gas volumes are often quoted as thousands or millions of cubic feet. While not exactly equivalent, for typical coal seam gas, 1PJ is equal to 1 billion cubic feet of gas, a Terajoule (TJ) is equivalent to 1 million cubic feet and 1 Gigajoule (GJ) is equal to 1 thousand cubic feet at standard temperature and pressure conditions. 12632-1