The four-state area of mutual interest includes Colorado, Wyoming, New Mexico and Utah.
"The focus is on coalbed methane and other unconventional oil and gas reservoirs that are expected to amenable to development with horizontal or high angle deviated wells or multi-lateral holes," Comet Ridge said in an ASX statement.
"Geotechnical work on specific prospects is well advanced and acquisition of leases is expected to commence shortly. Initial efforts have been focused on abandoned oil fields that can be re-developed and extended using the drilling technology."
AJ Lucas is to provide specialised directional drilling capabilities and equipment in return for an option to take up to a one-third share of any prospect. Comet Ridge will manage and operate the joint venture through its Denver, Colorado-based US subsidiary Comet Ridge USA Inc.
"The directors of Comet Ridge believe that a US strategy will create opportunities for near-term cashflow, broaden the company's asset portfolio, provide greater control of the company's destiny and create additional shareholder value," Comet Ridge said.
"The board sees the US as a potentially fertile additional source of capital to fund the company's future growth both in Australia and in the US."
US spot gas prices are currently four times those received in Australia and energy demand, particularly for natural gas, continues to outstrip supply. Cash flow can be established rapidly from success due to the extensive infrastructure that exists in the targeted states, the company said.
"The US oil and gas business offers a wide variety and quantity of oil and gas opportunities. The company sees a window of opportunity to capture coal seam gas as well as conventional oil and gas properties that are amenable to the directional drilling and completions technology developed in Australia by AJ Lucas," Comet Ridge said.
"It is expected that the joint venture will have a competitive advantage with the ability to draw upon the leading edge drilling technology expertise to be provided by AJ Lucas Group Limited."
Strike Oil holds 10% of Comet Ridge.
