Comet Ridge had taken a 50% stake in permit SPA 9, according to managing director Andy Lydyard.

“While our geological studies and water bore sampling confirm that natural gas exists in the sandstone aquifers [water reservoirs] of the Surat Basin in northern NSW, we need to focus our management and financial resources on projects that offer a shorter path to cash flow,” Lydyard said.

Comet Ridge has 20% equity in the Tipton West coal-bed methane project in the Surat Basin, which was recently awarded a petroleum pipeline licence for a 147km pipeline connecting the field with customers at Oakey, Dalby and Kogan. First gas is scheduled for January 2006.