Comet Ridge Limited has reported that its joint venture operator in northern New South Wales (NSW), Eastern Star Gas Limited (ASX: ESG), had announced encouraging initial resource bookings for two JV permit areas.

The licenses, PEL 427 and PEL 428, have been assessed by MHA Petroleum Consultants LLC. Tests have confirmed the potential of the prospects to produce coal-seam gas.

"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 program scheduled for the first half of 2011," said Tor McCaul, managing director of Comet Ridge. "This program 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."

Comet Ridge holds a 25% stake in PEL 427 and will hold a 40% stake in PEL 428.