Metgasco Updates On Recent Initiatives And Achievements

Metgasco Limited (ASX: MEL) is engaged in the exploration and development of coal seam methane and conventional gas resources in northern New South Wales, Australia. The company owns rights over tenements located in the Clarence Moretin Basin.

Today, on 31 May 2019, Metgasco has released its Investor Presentation updating on its business overview, ongoing activities, achievements over the last 12 months, 2019/2020 indicative timeline along with the upcoming investment highlights.

Led by an experienced team focussed on building value in the business, Metgasco farmed into the SM74 offshore licence in 2018 and is currently drilling the highly prospective exploration well D-14 with experienced Gulf of Mexico operator Byron Energy (ASX: BYE). The success of the ongoing exploration in the Gulf will lead to production revenue in Q4 2019.

Source: Company’s Investor Presentation

Recently on 22 May 2019, the Board of Metgasco announced that it had executed a Heads of Agreement (HoA) with Vintage Energy Ltd (ASX: VEN) concerning its Cooper-Eromanga Basin asset ATP 2021. The joint venture partnership is expected to be highly beneficial to Metgasco and provides for Vintage to earn a 50% interest in the Cooper/Eromanga Basin licence ATP 2021 by paying a disproportionate share of future drilling and other costs, including Metgasco development costs-to-date.

As per the terms of the Farm-in agreement, Vintage Energy would:

  • Fund 65% of the first exploration well drilled, up to a maximum gross cost of $ 5.3 million (with Vintage’s share being up to $ 3.445 million).
  • Contribute a further $ 527,800, which reflects 65% of the past licence back-costs/farm-out costs which have been incurred by Metgasco to date.
  • Fund the full carry of $ 70,000 of 2D/3D seismic re-processing currently scheduled to better identify expected shallow oil targets on the block.

The final documentation for the Farm-Out Agreement is expected to be completed by 30 June 2019, subject to conditions including ministerial approval and license registration. The first well is scheduled to be drilled on the Vali prospect in the second half of CY 2019. Metgasco has also assigned the responsibility of project management of the drilling planning to Vintage for the acceleration of works.

The probabilistic prospective resources estimate for the Vali prospect and Odin Prospect is given below:

Source: Investors’ Presentation

ATP 2021 Vali Prospect Depth Maps: E-W Seismic Line, Source: Investor Presentation

ATP 2021 Odin Prospect Depth Maps: NW-SE, Source: Investor Presentation

In addition, the preliminary work on the shallow oil prospectivity of the ATP2021 license has also indicated several prospects and leads, and a 2D seismic over the greater Kinta area is planned to be re-processed over the next two months.

Metgasco’ indicative time of works for 2019-2020 is given in the figure below.

Source: Investor Presentation

On the same day (31 May 2019), Metgasco announced its funding position to provide shareholders with an update subsequent to recent announcements. According to the company, it has cash of around $ 1.95 million currently and further holds ~ $ 1.39 million in ASX listed bonds.

In addition, the company’s equity interest (around 40,333,383 shares) in Byron Energy Limited (ASX: BYE) accounts for a current market value of ~ $ 12,503,348.

Metgasco, as announced, is not planning to raise any further capital from shareholders for its current operations and projects.

With a market capitalisation of around AU$ 17.97 million, the MEL stock last traded on 30 May 2019 at AU$ 0.046.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK