Gunnedah Basin

Comet Ridge’s interest in the Gunnedah Basin permits comprises PEL427 covering 7,014km² and PEL428 covering 6,025km². Eastern Star Gas Limited, as operator of both permits, drilled two CSG exploration wells in 1Q 2009, one in each permit, to fulfil its farm-in obligations. The first well, Moree-4 in PEL 427 encountered approximately five metres of net coal. The second well, Kurrabooma-1 in PEL 428 encountered approximately four metres of net coal. The permit areas are large and north of the Eastern Star Gas Narrabri CSG Production area. Comet Ridge Limited has these tenements in good standing and will evaluate drilling results from surrounding tenements before undertaking future work programs.

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.

United States

In 2008, Comet Ridge completed a deal with Pine Brook Road LLC (Pine Brook) to joint venture its US assets into a new company, Comet Ridge Resources LLC. Pine Brook is a New York-based private equity firm that operates in the energy and financial services sectors.

As part of the deal Pine Brook provided a line of equity of US$100m and invested cash of US$7m plus US$2m in assets in return for an initial 56.25% interest in the joint venture. Pine Brook has the opportunity to increase its interest in the venture to 80% interest after which Comet has the right to fund its 20% or be diluted down to a minimum of 5% interest.

Recent drilling and appraisal activity has focused in the Florence Oil Field (Colorado), and Grays Harbour Basin Pacific Northwest). Currently the Florence Oil Field produces approximately 130 BOPD from three wells. Additional drilling is being planned over the next 6 to 12 months.



Back to Top