Comet Ridge Limited reports that it's Joint Venture Operator in northern NSW, Eastern Star Gas Limited, had announced encouraging initial resource bookings for two JV permit areas.

Eastern Star Gas, as CSG Operator of Joint Ventures in PEL 427 and PEL 428, today announced the first independent assessment of the coal seam gas resources in these two licences. Comet Ridge holds a 25% stake in PEL 427 and will hold a 40% stake in PEL 428, following the signing of a binding heads of agreement in October 2010 to lift its stake in that permit from 20%.

Comet Ridge Managing Director, Tor McCaul said he was pleased that this assessment by MHA Petroleum Consultants LLC confirms the CSG potential of its northern NSW acreage.

'In particular, Comet Ridge is excited by the Contingent Resource booking in the Black Jack and Maules Creek Formations in the southeast corner of PEL 427, where the Joint Venture has a work programme scheduled for the first half of 2011,' Mr McCaul said.

'This programme includes reprocessing of existing seismic data, acquiring new seismic and the drilling of a core hole to confirm the characteristics and areal extent of these Bellata Trough coals.'

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