Metgasco Ltd

Glennon Small Companies provides a $500,000 bridging loan at 10% a year for short-term working capital. It is to last until Metgasco's debt is restructured, which the company must progress as a key condition.

debt financing

The $5.9m sale to Vintage is terminated because Vintage did not secure funding or buy Bridgeport's 25% by 31 March 2026. Metgasco keeps its 25% and must repay $255,000 of cash-call loans by 13 May. Seeking new assets or a recapitalisation.

material agreement termination

Vintage says South Australia announced up to $5m in grants ($2.5m each to PRL 211 and ATP 2021) for drilling Odin-3 and Vali-4, covering up to 50% of well funding. Subject to grant agreements; drilling possible in September quarter 2026. Metgasco holds 25% of both permits.

regulatory community update

Metgasco signed the formal agreement to sell its 25% of Odin and Vali to Vintage for $5.9m, turning the November heads of agreement into a binding deal. It is a sale of the main undertaking, so an EGM is set for 14 January 2026. Completion is indicated for January-February.

asset acquisition disposition

Metgasco signed a conditional heads of agreement to sell its 25% of Odin and Vali to Vintage for $5.9m. Vintage takes on the $3.39m AGL prepayment liability. Sale proceeds are to repay the Glennon debt. Needs shareholder approval at an EGM. Ends the strategic review.

asset acquisition disposition

ASX paused trading in Metgasco pending a further announcement. No reason is given in the text. Four days later the company announced a sale of its assets.

other

Notice of a 50-for-1 share consolidation, subject to the 26 November 2025 shareholder vote. Shares fall from 1,837,086,744 to 36,741,735, with options consolidated and exercise prices multiplied by 50. Normal trading resumes 9 December. Holders' proportional ownership is unchanged.

security holder rights change

Vintage's interim uplift results: scale found at Odin-1, Odin-2 and Vali-2, removed by acid at Odin. Raw gas 2.9 MMscf/d versus 2.5 before shut-in. Opening Vali-1's Toolachee zone gave no measurable gas. Program now two phases; phase 2 from September.

well test result

Entitlement offer raised about $750,000 at $0.002. Shareholders took up about $498,594 (249.3m shares) and the underwriter will place the roughly 125.4m-share shortfall. Funds the uplift program, now expected to start mid-July. Resolves the open raising.

capital raising announcement

Metgasco launches a non-renounceable entitlement offer of up to about $750,000 at $0.002 a share (1 for 3.89), 50% underwritten by PAC Partners. Funds mainly pay the roughly $475k uplift program plus $200k working capital. Glennon sub-underwrites and could reach 24.56%.

capital raising announcement

Operator Vintage reports Queensland renewed ATP 2021 for six years to May 2030. The permit has 23 oil prospects and leads and 3 gas prospects; Vali and Odin production licence applications are in progress.

regulatory community update

The joint venture approved the Production Uplift Program, modelled to lift raw gas by 2.1 to 5.6 MMscfd, at about $475k net to Metgasco. Flooded roads delay the start to June at the earliest; funding is being considered in the strategic review.

drilling scheduled

Metgasco hires PAC Partners to run a strategic review, following recent expressions of interest from external parties in the business. No certainty of any transaction; shareholders need take no action.

other

Independent assessment (CDRI) books first Odin reserves. Net 2P sales gas and ethane reserves rise 45% to 35.5 PJ (6.3 MMboe), mostly from converting Odin contingent resources, which previously stood at 9.55 PJ net 2C. Odin net 2P is 11.2 PJ.

resource reserve update

Metgasco confirms Odin-2 is online at about 3 MMscf/d, resolving the long-delayed tie-in. Management expects roughly 400% higher raw gas rates than in August, and significantly higher revenue from the December quarter FY25 onward.

production update

Operator Vintage reports Odin-1 optimisation lifted flow to 3.3 MMscf/d from 1.4, after scale was found in the completion packer and Patchawarra was perforated. Odin-2 is completed, with first gas due mid-October. Vali-2's Toolachee sleeve was opened but performance is unchanged.

production update

Glennon Small Companies lifts its loan to Metgasco by A$2m to A$2.88m, taking total Glennon debt to A$4.88m (blended 15.9%, mostly unsecured). It repays two A$500k short-term loans and funds Odin-2 tie-in. Interest at 20% is capitalised, maturity 31 Dec 2025.

debt financing

Glennon Small Companies, the largest equity and debt holder, lent A$880,000 more (capitalised interest, maturity 31 Dec 2025, 12.5% revenue royalty after repayment). Chair Philip Amery and director Peter Lansom resigned; Michael Glennon is interim chair. Metgasco calls it an alternative to heavily discounted raisings.

debt financing

The SPP raised A$743,500 from 148.7m shares at A$0.005, below the A$1.5m target. With the A$1m placement, funds go to Odin-2. Metgasco says it is still assessing additional funding, so further capital needs remain open.

capital raising announcement

Odin-2 appraisal well successful: preliminary logs show gas pay in all three targets (11 m Toolachee, 3 m Epsilon, 45 m Patchawarra). The well will be cased and suspended as a future producer; gas could flow in winter, subject to JV approval. This resolves the Odin-2 drilling thread positively.

drilling result

Odin-2 appraisal well spudded on 15 May 2024, 1.1 km north-east of Odin-1, with a planned depth of 3,156 m and 3 to 4 weeks to drill. If successful it would be tied in by a 1.1 km flowline. This follows the flood delays.

drilling spud

Metgasco raises about A$1m by placing about 200m shares at A$0.005, a 16.7% discount, plus a share purchase plan of up to A$1.5m at the same price. Funds go to the Odin-2 well and working capital. This is far below the 2c placement of October 2022, so existing holders are heavily diluted.

capital raising announcement

Metgasco repaid Keybridge and cancelled its loan notes and options, ending the relationship while disputing the termination notice's validity. It raised A$1m from outside investors: 6 months, 12% a year, secured, with 8m options at 2.5c. Glennon's facility stays.

debt financing

Metgasco says Keybridge is failing its obligations under the A$3m part of the A$5m loan facility, and has started mediation. Director John Patton resigned. Metgasco says it is funded into Q1 CY24. This contradicts the earlier picture of a fully available A$5m facility.

director officer appointment

Keybridge says it has loaned A$1.44m and pressed a termination notice, citing Metgasco's failure to get shareholder approval for the attaching options within 90 days. It demands repayment of A$1.44m plus interest within 90 days. Metgasco disputes this.

debt default or forbearance

Metgasco confirms a second Odin gas contract with Pelican Point Power, covering 1 January 2025 to 31 December 2026. This extends the 15 May 2023 deal, which ran to December 2024. It supports assessing further Odin appraisal wells.

material agreement

Vintage reports a new two-year gas sale to Pelican Point Power for 1 January 2025 to 31 December 2026, extending Odin's contracted supply from start-up to end 2026. It is interruptible supply of all Odin gas, at prices in line with market expectations.

material agreement

Metgasco confirms Odin-1 started producing on 14 September 2023, 10 months after the JV chose to accelerate the connection. It is Metgasco's second revenue stream after Vali, supplying Pelican Point Power to end 2024. Metgasco intends to add production via future drilling.

production update

Vintage reports Odin began producing gas on 14 September 2023, on schedule, supplying Pelican Point Power to end 2024. This is the second field online after Vali in February 2023. Odin 2C is 40 PJ gross; the JV is exempt from the gas price cap.

production update

The ACCC grants the Odin joint venture final authorisation to market gas jointly for five years, with supply contracts of up to 15 years. It replaces the February 2023 interim authorisation and resolves the open request for longer contract terms.

regulatory community update

Operator Vintage announces the first Odin gas contract: Pelican Point Power (ENGIE/Mitsui) will take all Odin gas from start-up to 31 December 2024, interruptible, for up to 17 months. Odin is still on track for first gas in the September 2023 quarter.

contract award

Vintage says Vali-1 is performing to forecast, but Vali-2 is suspended pending equipment and crew for fluid removal. Vali-3 was shut in 7 April after averaging 1.3 MMscfd, and water stopped it restarting. Stable output from all three wells is expected within the financial year.

production update

Metgasco signs a A$5m debt facility with shareholders Keybridge (A$3m) and Glennon (A$2m): 10% interest, 3-year term, secured over company assets. Lenders receive 160m options at 2.5c. It says this fully funds Vali and Odin commitments without further equity raisings.

debt financing

Operator Vintage reports Vali first gas on 21 February 2023, supplying AGL. Vali-3 is expected in early March and Vali-2 later that month. Odin flowline has been laid and Odin FEED has started. Vali has 85 PJ gross uncontracted.

production update

Metgasco confirms Vali first gas on 21 February 2023, its maiden revenue, about three years after discovery. Vali has 101 PJ gross reserves (25.2 PJ net) and 85 PJ gross uncontracted. Odin flowline is laid, with first gas projected Q3 CY23.

production update

Operator Vintage says Vali commissioning now slips to January 2023, after November weather disrupted pipeline work. This is the third delay to first gas, previously December 2022. Work resumes around 4 January 2023.

production update

Metgasco terminates the Patriot Hydrogen staged acquisition announced 16 August 2022, citing, among other factors, unmet conditions precedent. It has begun recovering the working capital loan, which it says was not used for shipment. It is still evaluating new initiatives, including renewables.

material agreement termination

Operator Vintage says the PRL 211 joint venture will connect Odin in two stages: a quick temporary connection to the Vali-Beckler pipeline, then a longer-term tie-in to Vali facilities. First Odin gas is targeted for Q3 2023; Vali first gas still December 2022.

joint venture update

Metgasco raises about A$2.7m by placing roughly 135.13m shares at 2c, a 20% discount to the last close, to finish Vali, fund Odin tie-in engineering and Patriot. It says it is now funded to first Vali revenue. Directors contribute about A$100,000.

capital raising announcement

Operator Vintage pushes Vali first gas from October to December 2022, citing contractor crew availability and skilled trade shortages affecting fabrication. This is the second delay, after the earlier slip from mid-2022 to October.

production update

Metgasco signs a binding term sheet for a staged acquisition of Patriot Hydrogen, a waste-to-hydrogen developer, beginning with a working capital facility, then a A$750,000 equity investment, then an all-scrip purchase at A$5.9m, subject to milestones and 2022 AGM approval. A diversification beyond Cooper Basin gas.

business combination

Operator Vintage says the PRL 211 joint venture will start concept engineering to connect Odin to the Vali pipeline and prepare a marketing plan. Odin gas sales could begin in the first half of FY24, subject to approvals. Odin-2 appraisal is anticipated in FY24.

joint venture update

Ministerial approval is received for the PRL 211 purchase from Beach Energy, lifting Metgasco from 21.25% to 25% for A$562,500 in total. Its net Odin 2C resource rises 0.77 to 8.77 Bcf. This resolves the pending approval from 29 March.

asset acquisition disposition

Operator Vintage says Vali first gas slips from mid-2022 to late September-October 2022, citing global supply chain delays and heavy rain interrupting stimulation. A rig is contracted for completions from July, and the final A$5m prepayment can be invoiced. Vintage says it remains fully funded.

production update

The Vali processing agreement with the SACB joint venture is signed, so the AGL gas sales agreement is now unconditional. Two prepayment tranches totalling A$10m gross (A$2.5m net to Metgasco) can be called. This resolves the conditions precedent set on 23 March.

material agreement

Metgasco confirms Cervantes-1 reached 2,520 m MD and all three Permian targets were water-bearing; the well will be plugged and abandoned. Metgasco is a 30% partner in L14. It says the well was ahead of budget and refocuses on Vali and Odin.

drilling result

Vintage reports Cervantes-1 reached total depth without finding hydrocarbons and will be plugged and abandoned. Reservoir sands are water-wet. This is a dry hole for the 15.3 mmbbl P50 prospect, resolving the main near-term oil catalyst.

drilling result

Metgasco and its partners will buy Beach Energy's 15% of PRL 211, subject to Ministerial approval, lifting Metgasco from 21.25% to 25%. It spends A$562,500 in total, tied to Odin milestones. Its net Odin 2C resource rises 0.77 Bcf to 8.77 Bcf.

asset acquisition disposition

Cervantes-1 began drilling on 26 March, with the 13 3/8 inch casing set at 68 m. The well is planned to reach about 2,370 m TVDSS in roughly 16 days. This is the spud of the oil exploration well targeting 15.3 mmbbl.

drilling spud

The Vali joint venture signs the definitive AGL gas sales agreement, for 9–16 PJ gross to end 2026 with A$15m prepayments in three tranches. It follows the December Heads of Agreement. It begins only after conditions precedent, including Moomba processing agreements, are met.

material agreement

Metgasco raises A$5.0m via a placement of 192m shares at 2.6c, a 16.1% discount to the last close. Investors get 1-for-3 options at 4.5c expiring 10 Dec 2024, subject to approval. Funds go to Cervantes-1 and the balance sheet.

capital raising announcement

Metgasco says it has secured the Ensign 970 rig and all environmental approvals for Cervantes-1, with spud planned in the second half of March 2022. The well targets 15.3 mmbbl P50 prospective oil (4.6 mmbbl net). This resolves the approval and rig-contract threads.

drilling scheduled

Vali joint venture signs a conditional Heads of Agreement to sell AGL 9 to 16 PJ gross (up to 4 PJ net to Metgasco) from mid-2022 to end 2026, with a A$15m prepayment. It is the first gas sale deal for Vali; still needs a gas sales agreement and a Moomba processing agreement.

material agreement

ERCE lifts Vali gross 2P reserves to 92 Bscf (101 PJ), up from 30.3 Bscf, a 201% rise, adding the Toolachee formation. Metgasco's 25% share is 23.0 Bscf (25.2 PJ) 2P. Resolves the long-delayed reserve update; still needs FID and a gas sales agreement.

resource reserve update

Non-binding letter of intent signed with Strike Energy to negotiate sharing the Ensign 970 rig for Cervantes-1, now targeted for Q2 CY22 (earlier guide: late Q4 CY21/Q1 CY22). Environmental approval expected around end November 2021. Prospective resource P50 15.3 mmbbl oil gross; Metgasco 30%, operator.

material agreement

ERCE certifies Odin gross 2C contingent resources of 36.4 Bcf, 8 Bcf net to Metgasco, versus pre-drill 12.6 Bcf (2.8 net), about a 190% increase. Resolves the Odin update promised after the 31 May discovery. Contingent on a final investment decision and a gas sales agreement.

resource reserve update

The fully underwritten entitlement offer closed raising A$4.58m at A$0.025. Shareholders took up 63.3m shares plus 39.2m via top-up, and underwriters placed 80.7m of the 183.2m offered. The company says it is funded through the rest of 2021.

capital raising announcement

Vali-3 interpreted net pay is 178 m in the Patchawarra and Tirrawarra, the largest of the three Vali wells (Vali-2: 150 m). Possible extra Epsilon/Toolachee pay is still being assessed. ERCE reserve update now expected before end September, later than the earlier late-July guide.

drilling result

Vali-3 confirmed Patchawarra gas pay in line with pre-drill expectations and is cased for production, giving three cased Vali wells. The three-well campaign was 100% successful. ERCE reserve reassessment is due in coming weeks; the CEO expects a Vali development decision in H2 CY2021.

drilling result

Metgasco launches a fully underwritten 1-for-3 entitlement offer at A$0.025 to raise about A$4.58m, with an attaching option per 3 new shares (strike A$0.031, expiry 31 Dec 2022). Most of the money is for Cooper Basin appraisal and commercialisation (A$2.36m), pipeline infrastructure (A$0.62m) and Cervantes (A$0.83m).

capital raising announcement

Metgasco reports Odin-1 net gas pay of 172.5 m, which the CEO calls better than anticipated, plus gas sample results. Resource and reserve updates are due in coming weeks. Vali-3 is at 2,774 m. Quantifies the 31 May discovery.

drilling result

Operator Vintage reports Vali-2 has 150 m of net gas pay versus 80 m at Vali-1 ST1, including 24 m in the Toolachee. An ERCE reserve reassessment is planned after Vali-3; Vali-3 is due to spud within days.

drilling result

Odin-1 is a gas discovery: wireline logging confirmed gas pay in the Toolachee, Patchawarra and Epsilon, and it will be cased for production. Metgasco holds 21.25%, paying 25% of well cost. Resources are to be re-certified; the rig moves to Vali-3.

drilling result

The ACCC granted final authorisation for Vintage, Metgasco and Bridgeport to jointly market Vali gas for five years, with supply contracts of up to 15 years. Confirms the March draft determination and clears a competition hurdle; a gas sales agreement is still needed.

regulatory community update

Vali-2 confirmed gas in the Toolachee and Patchawarra and is cased and suspended for production. The Toolachee, untested at Vali-1 ST1, yielded a gas sample, so a reserve increase over the 8.3 PJ net 2P is expected. Second successful Vali well.

drilling result

Metgasco estimates prospective resources at the Loki prospect in its 100%-owned ATP 2020: best-estimate 6.4 MMbbl recoverable oil and 13.1 Bcf gas, drillable with one shallow well. Unrisked, undrilled; farm-out under way, with seismic or drilling sought in CY2022.

resource reserve update

Metgasco confirms a firm three-well 2021 program: Vali-2 (April/May), Odin-1 (May/June, brought forward from Q3/Q4) and Cervantes-1. The Vali flowline purchase is deferred to size it after drilling, likely delaying first gas to late 2021 or early 2022.

drilling scheduled

Following the AGM approval, Metgasco distributed 20 million of its Byron Energy shares pro-rata to shareholders (record date 18 December 2020). This delivers the in-specie distribution that had been pending, leaving the company with fewer Byron shares.

asset acquisition disposition

Metgasco's first reserves booking: ERCE certified Vali gross 2P of 30.3 Bscf (33.2 PJ), of which 8.3 PJ is Metgasco's net 25%. This converts much of the earlier 2C contingent resource into reserves. Gas sales and the development decision are still pending.

resource reserve update

Vintage's Vali development concept: about nine wells, a field life near 20 years, and about 5 Bcf per well. Preferred connection is Santos's Beckler Field. First production is expected in Q3 FY21; the first two wells are planned for the first half of 2021. Conversion to reserves is underway; no reserves booked yet.

resource reserve update

The share purchase plan raised $2.6m (about 104m shares at $0.025) after $3.75m of applications, with $600,000 of oversubscriptions accepted and a roughly 30% scale-back. This adds to the $1.375m placement and funds Vali completion and the Perth Basin.

capital raising announcement

Vali-1 ST1 flow test completed: stabilised 4.3 MMscfd over two days, peaks to 7.5 MMscfd, and all fractured zones contribute. The gas is dry. This de-risks the discovery; reserves assessment and joint venture development decision are next. Net 2C is still 9.4 Bcf.

flow test result

Metgasco raises $1.375m through a placement of 55m shares at $0.025 (24.2% discount), with 1-for-3 options at $0.05. A share purchase plan of $1m, up to $2m, follows at the same price. Funds go to Vali testing and commercialisation, the Perth Basin and working capital.

capital raising announcement

Melbana, the 27.7% holder whose takeover bid closed in January, formally requests a general meeting to appoint Michael Sandy and Matthew Worner as directors and remove Chairman Philip Amery and John Patton. Metgasco is checking the notice's validity.

security holder rights change

Letter responds to COVID-19 and the oil price fall. The planned 20m Byron share distribution is deferred, and the Board and CEO cut pay 50% (CFO 30%) to at least 30 June. Vali testing (late Q2), Cervantes and Odin timing are under review.

regulatory community update

Metgasco books its first Cooper Basin resource: independently certified gross 2C Contingent Resource of 37.7 Bcf at Vali, 9.4 Bcf net to its 25%. This is 7% above the pre-drill best estimate and resolves the pending reassessment; stimulation and flow test planned Q2 CY2020.

resource reserve update

Metgasco confirms the binding PRL 211 farm-in is signed, replacing the 22 November term sheet. It earns 21.25% by paying about $1.0m (25% of the Odin well); spud targeted Q4 FY20, completion by 31 March 2020, subject to ministerial approvals and funding.

farm in farm out agreement

Melbana's offer closed 31 January 2020 with acceptances for 27.81% of Metgasco shares. The 50.1% minimum was waived, so Melbana is now a large minority holder, short of control. Its new shares are due to be issued by 14 February.

business combination

Melbana declared its takeover offer wholly unconditional, freeing it from all outstanding conditions; voting power is 23.19%. Resolves the conditions thread; accepting holders can no longer rely on the 50.1% minimum, and the Board still recommends rejecting the offer.

business combination

Metgasco executes the restated L14 farm-out with Jade and Vintage, as per the 15 November term sheet. Vintage funds 50% of Cervantes for 30% and pays $100k to Metgasco. Cervantes drilling is committed for Q3 CY2020, gross cost $5-7m. Metgasco has a right to a second well.

farm in farm out completion

Metgasco confirms the Vali-1 ST1 gas discovery in ATP 2021: over 35m of net pay over a 312m gross Patchawarra interval, on the high side of pre-drill estimates. The 25% interest was free-carried to case and suspend; resolves the Vali-1 thread.

drilling result

Vintage, as operator, announces a gas discovery at Vali-1 ST1: over 35m of net gas pay in the Patchawarra, on the high side of pre-drill estimates. The well will be cased and suspended; the Vali resource is to be re-assessed later.

drilling result

Metgasco takes up about half its Byron entitlement (1,111,112 shares at $0.27), lifting its holding to 43,444,495 shares. The planned in-specie distribution is cut from 30m to 20m shares, with a meeting now expected mid-February. Metgasco expects about $7.5m of cash and financial assets post-distribution.

security holder rights change

Drilling began on 17 December 2019 at Vali-1 in Cooper Basin ATP 2021, using the SLR-185 rig. Metgasco is free-carried with a 25% interest, and net best-estimate prospective resource is 9.5 Bcf.

drilling spud

The ATP2021 JV signs a term sheet to farm into PRL 211. Metgasco pays about $1.0m (25% of the Odin well) for a net 21.25%, with a spud targeted Q4 FY20. Gross best-estimate is 12.6 Bcf; conditions are due by 31 January 2020.

farm in farm out agreement

Metgasco signs a binding term sheet with Jade and Vintage: Vintage funds 50% of the Cervantes well for a 30% interest plus $200k of costs. Metgasco's L14 interest falls to 30% and its cost exposure to 50%, confirming its right to drill (Q3 CY2020).

farm in farm out agreement

Metgasco confirms the Vali-1 rig contract, with spud expected mid-December 2019. It holds 25% free-carried, with net best-estimate unrisked prospective resource of 9.5 Bcf (38.1 Bcf gross) and 34% chance of success. Firms up the late-2019 timing.

drilling scheduled

Metgasco says Melbana's 7 November extension notice appears defective and the bid may not be validly extended. It cites acceptances of about 1.19% (excluding shares tied to Melbana's chairman) and still recommends rejecting.

business combination

Metgasco's formal target's statement unanimously recommends rejecting Melbana's offer, calling it wholly inadequate. It cites discounts of about 10-21% to recent trading averages and says shareholders should do nothing. This confirms the earlier take-no-action advice.

business combination

Independent assessor RISC puts mid-case prospective resources for Cervantes (L14) at 17.4 mmbo gross, 14% above Metgasco's estimate, and values the farm-in at $4.4-5.8m. Expected value is $28.4m net. Undiscovered, un-risked volumes; not reserves.

resource reserve update

Board proposes, subject to AGM approval and an ATO ruling, distributing 30m Byron shares in kind, about 1 per 13 Metgasco shares (about 2.8c each). That is about 70% of the holding; 12,333,383 shares are kept. It says this may breach a Melbana bid condition.

asset acquisition disposition

Operator Vintage signs a letter of intent with Schlumberger for rig SLR-185 to drill Vali-1 in ATP 2021, with spud expected late 2019. Vintage's net best estimate is 17.6 Bcf (35.1 Bcf at 100%), a 34% chance of success; undiscovered, not booked.

drilling scheduled

Metgasco notes Vintage's Vali estimate of 38.1 Bcf gross (9.5 Bcf net to Metgasco's 25%), double its November 2018 figure of 19 Bcf, due to a larger mapped closure. The well is free-carried for Metgasco by the two farm-outs.

resource reserve update

Metgasco's directors unanimously say Melbana's offer, in its current form, materially undervalues the company and advise shareholders to take no action. A formal target's statement recommendation is due by 9 October; the bid closes 24 October.

business combination

Metgasco sells 8m Byron shares for about $2.72m and uses $1.75m to pay off the Byron SM74 settlement, ending that obligation. It keeps 42,333,383 Byron shares and about $1.33m cash. No further sales are planned.

asset acquisition disposition

Metgasco reported un-risked prospective resources for the Cervantes and Western Brush oil prospects in L14 of 15.6 million barrels gross best estimate (9.3 million net at 60%), with a high case of 42.9 million. The joint venture plans to drill at least one by Q3 CY2020.

resource reserve update

Melbana lodges its formal bidder's statement for the all-share off-market takeover of Metgasco. This turns the announced intention into a lodged bid. Metgasco's target's statement and recommendation follow.

business combination

Metgasco signs a binding option to farm into Perth Basin licence L14 (Jade/RCMA): by 15 Nov 2019 it can commit to drill one well, paying 100% of costs to earn 60% of any discovery, with a second-well option. A new onshore oil project, a strategy shift, while Melbana's bid is pending.

farm in farm out agreement

Metgasco signs a binding farm-out of a further 25% of ATP 2021 to Bridgeport (Cooper Basin). Bridgeport funds 32.5% of the first well (up to $1.72m), leaving Metgasco free-carried with 25% non-operated. Subject to ministerial approval.

farm in farm out agreement

Melbana's intention to bid is now unconditional after ASIC relief: 4 Melbana shares per Metgasco share, 50.1% minimum acceptance. Melbana waived the breaches caused by the Byron settlement and option exercise, but other conditions remain.

business combination

After the dry SM74 well, Metgasco settles its exposure by paying Byron A$1.75m by 30 September 2019, capped against further overruns. It also exercised its 10m Byron options at 25c, adding to its Byron holding.

asset acquisition disposition

Melbana announces a conditional intention to bid for all of Metgasco, offering 4 Melbana shares per Metgasco share, implied value about 4c. M&A Advisory (19.59% holder) has agreed to accept absent a superior proposal. Needs 50.1% acceptance and ASIC relief.

business combination

Byron's release, not Metgasco's: the SM74 D14 bypass well reached 14,933 ft and found wet sands in the primary objective, with only thin, non-commercial hydrocarbon shows. It is being plugged and abandoned. Byron calls the result disappointing.

drilling result

Metgasco's own notice: SM74 D-14 reached 14,933 ft, found wet primary sands and was deemed uncommercial; it is being plugged. Metgasco calls it a commercial failure, says it is funded for extra costs, and will review its operations.

drilling result

Metgasco executes the formal ATP 2021 farm-out and joint operating agreement with Vintage, matching the 22 May terms: Vintage earns 50% and operatorship, funding 65% of the first well (up to $3.445m). Transfer awaits ministerial approval; Vali well targeted Q4 2019.

farm in farm out completion

Metgasco signs a binding Heads of Agreement for Vintage Energy to earn 50% and operatorship of Cooper Basin ATP 2021. Vintage funds 65% of the first well (up to $3.445m), pays $527,800 of back-costs and $70,000 of seismic. First well at Vali targeted for second half 2019.

farm in farm out agreement

Metgasco's own notice that SM74 D-14 spudded 15 May 2019, about 3 months later than the Feb-Apr window set in 2018. Targets 5.2 mmbo and 13.2 bcf gross (1.56 mmbo and 3.96 bcf net to Metgasco). Company says its share is fully funded; Ken Aitken is now named CEO.

drilling spud

Ken Aitken resigns from the board but stays as part-time Chief Executive Officer on a continuing contract. He had joined as Executive Director on 4 September 2018. He is not standing for re-election, so two AGM items are withdrawn.

director officer appointment

Metgasco books prospective gas resources for two ATP 2021 Cooper Basin prospects: Vali (26.3 Bcf best-case in place) and Odin (12.0 Bcf). The company holds 100%, plans a well in the second half of 2019, and has a farm-out under way. These are undrilled prospects, not discoveries.

resource reserve update

Metgasco confirms a drilling rig is contracted for SM74, allowing a February 2019 spud. The well targets 5.2m barrels of oil and 13 Bcf of gas. Metgasco pays 40% of the about US$11m dry-hole cost for 30%. Removes the rig uncertainty flagged on 19 September.

contract award

The Bivouac Peak East well is a dry hole: first target water-bearing, second under 5 net feet of tight gas. Being plugged and abandoned at 17,766 ft. Cost is expected to be US$7.5m rather than US$10.5m budget (Metgasco 10%). Resolves the 75-day drilling thread.

drilling result

Final agreements are signed for drilling SM74 from the adjacent SM73 platform and, if successful, producing through it. The SM74 spud slips from November to February-April 2019, depending on permitting and rig availability. Metgasco's 30% interest and about US$4.4m cost to reach total depth are unchanged.

joint venture update

Ken Aitken, a petroleum engineer with 30+ years' experience, joins as Executive Director on a half-time basis, fixed pay $164,250. He will focus on new business and the Cooper Basin work program and help manage US activity. Described as the first formal executive appointment for some years.

director officer appointment

The Bivouac Peak East well (Weiss-Adler No. 1) began drilling on 25 August 2018, with about 75 days expected to reach 18,000 ft. Metgasco pays up to US$1.333m for a 10% interest. Target is 32.2 Mmboe gross prospective resource; this is the spud flagged for August.

drilling spud

Executive Chairman Alexander Lang retired from the board after 2½ years to take a full-time role in a private enterprise. Director Philip Amery, appointed in December 2015, was elected the new Executive Chairman.

director officer appointment

Metgasco farms into the Gulf of Mexico SM-74 prospect with Byron, earning 30% by funding 40% of the test well (budget US$4.4m of US$11m). Gross prospective resource is 5.2m barrels oil and 13 Bcf gas. Its second US well after Bivouac Peak; drilling is targeted for October.

farm in farm out agreement

Board issues an updated vision and strategy: diversified energy investments in Australia and North America, developing the Cooper Basin permits, and a stated aim to start shareholder distributions by FY2020. Limits exposure to any one project to 30% of the balance sheet.

other

Metgasco elected to join the Weiss-Adler et al No. 1 well at Bivouac Peak, expected to spud in August and drill to 18,294 ft. It earns a 10% interest (7.45% NRI) by paying up to US$1.333m of drilling costs, targeting a 32.27 million boe gross prospective resource.

farm in farm out completion

Queensland grants Metgasco Cooper Basin permits ATP 2020 and ATP 2021, the 100%-owned blocks it won as preferred tenderer in 2016. This ends the long wait after the native title deals. Geological mapping and seismic review will be accelerated.

regulatory community update

Byron Energy's first oil from SM71 lifts Metgasco's 5.77% Byron stake to $17.05m (gain $14.4m) at 45c, plus options worth $2.0m. $6.0m of the $8m note remains outstanding. Details its extra Gulf of Mexico farm-in rights (10% or 15% minimum); still evaluating new business.

joint venture update

Native Title agreements with the Wongkumara people were signed 6 February 2018 for Cooper Basin blocks ATP 2020 (535km2) and ATP 2021 (369km2), the last step before grant. Award expected shortly. Consultant geologist Trudy Bretherton is engaged for early exploration work.

regulatory community update

M&A Advisory serves its own notice seeking to remove Lang, Patton and Amery, a counter-move to the bid to remove its nominee Purcell. The company is taking legal advice on validity; no replacement directors named. Both sides now face a vote at the 11 April meeting.

director officer appointment

Directors Lang, Amery and Patton give notice of a meeting to remove fellow director Andrew Purcell, the M&A Advisory nominee. This opens a board fight, building on the earlier tension with M&A Advisory, the company's largest shareholder at about 19.2%.

director officer appointment

Frey-1 was plugged and abandoned for lack of significant hydrocarbon shows, a dry hole for Metgasco's new Cooper Basin farm-in. The company says cost is within budget and the investment was under 3% of assets. It is still evaluating other Cooper farm-ins.

drilling result

Metgasco agrees to farm into the Frey-1 oil well in PEL93, South Australian Cooper Basin, for a 20% interest, paying 30% of drilling costs (about $600k of a $2m cap). Operator Senex and Cooper Energy are partners; the well spudded 23 September. It is Metgasco's first new drilling exposure since the NSW losses.

farm in farm out agreement

Metgasco takes up its priority right in Byron's raising, paying A$2,652,790 for 37.897m shares at 7c, giving a 5.77% stake. It also gets an option to farm into another new Byron Gulf of Mexico block. Byron note amortisation starts next quarter.

material agreement

Metgasco confirms Byron issued it the full A$8.0m convertible note on 20 January 2017, repayable by 21 July 2019 and secured over Byron's assets and SM 70/71 interest. This completes the July 2016 funding deal, turning cash into a secured receivable.

debt financing

Metgasco wins two Queensland Cooper/Eromanga Basin exploration blocks (PLR 2015-5-16, 530km2; PLR 2015-5-19, 370km2) by competitive tender, its first new acreage since the NSW licences were lost. Grant awaits Native Title and environmental approvals; about $300k is forecast over 12-18 months.

asset acquisition disposition

Having received a draft ATO class ruling, Metgasco will proceed with the 2.5c per share return of capital, resolving the pending condition. Record date is 11 November and payment date 16 November 2016.

security holder rights change

M&A Advisory nominee Andrew Purcell joins the board as a non-independent director and M&A withdraws its notice to remove Lang and Amery, resolving the dispute. M&A is now described as the 19.20% largest holder. Purcell must keep a 10% interest or resign.

director officer appointment

Metgasco signs the formal Bivouac Peak participation agreement, completing the July farm-in notice. Byron shareholders approved the note and options on 12 Sept. Its 10% interest (7.45% NRI) costs about US$1.3m; first well, targeting 32,270 Mboe gross prospective resource, is expected Q1 or early Q2 2017.

farm in farm out completion

M&A Advisory, holding about 17.33% (69.5m shares), gives notice of its intention to seek removal of Executive Chairman Alexander Lang and director Philip Amery. No meeting has been requisitioned and replacements are not named. Metgasco is taking legal advice on the notice's validity.

other

Metgasco gives notice it will farm into 10% of Byron's Bivouac Peak onshore Louisiana prospect, with initial well costs not expected above US$1.33m, and plans a 2.5c per share capital return via a general meeting in early September. First Byron line fee of A$40,000 received.

farm in farm out agreement

Byron and Metgasco sign the definitive $8m convertible note agreement, matching the June heads of agreement. Early repayment terms are now set at 115% of principal in days 90 to 180 and 105% afterward. Completion still needs Byron shareholder approval, expected after a notice of meeting in late July or early August.

debt financing

Metgasco confirms a binding agreement to lend Byron up to $8m (max exposure about A$7.8m, roughly 27% of its resources), secured over SM 70/71. It gets 10m options and a right to farm into Bivouac Peak (about A$1.3m). The board will consider a first distribution in the second half of 2016.

material agreement

Byron Energy's announcement of the Heads of Agreement: Metgasco to provide an up-to-$8m, 3-year, 12% convertible note for Byron's SM 71 Gulf of Mexico project. Metgasco also receives 10m options at 25c and an option on a 10% Bivouac Peak interest. This is the first new-business deal after the NSW exit.

debt financing

CEO Peter Henderson leaves after five years with $330,000 in leaving costs, and Chairman Alexander Lang becomes Executive Chairman. Strategy now targets income-producing oil and gas exposure and rules out single-project or exploration-heavy deals. Assets are $28.6m ($0.0715/share); a capital return is possible in late 2016 if no deal is done.

director officer appointment

Alexander Lang and Terry White join the board as non-executive directors, and Lang becomes Chairman. Greg Short resigns as Chairman and director for family reasons, and Len Gill also resigns now. This completes the board renewal flagged after the December settlement.

director officer appointment

Len Gill steps down as Chairman, to retire from the board by end of February 2016, citing the change in Northern Rivers focus. Greg Short becomes Chairman and Philip Amery, a capital markets adviser, joins as non-executive director.

director officer appointment

Metgasco received $25 million plus $430,000 of refunded bonds after shareholders approved the buy-back on 16 December. PEL 13 and PEL 16 are cancelled and the PEL 426 and PPLA 9 applications and court action withdrawn. Cash is expected to be about $31m, or $0.071/share.

asset acquisition disposition

NSW Government offers $25 million to buy back PEL 13, PEL 16 and PEL 426 and settle the legal disputes; the board unanimously recommends it, subject to a shareholder vote. This replaces the rejected earlier indicative offer. Cash backing would be $0.074/share.

asset acquisition disposition

Metgasco served a statement of claim on the NSW Government on 4 September for damages from the unlawful 2014 Rosella suspension. Hearing dates are not set. Follows failed attempts to get compensation without court action.

regulatory community update

Settlement talks with NSW Government failed. Metgasco will start court action for damages, prepare judicial review to renew PEL 426 and award PPLA 9, and finalise contracts for seismic and Rosella drilling. It remains open to resuming settlement talks.

regulatory community update

NSW Government will not appeal the 24 April Supreme Court ruling that overturned the Rosella drilling suspension; the appeal deadline was 22 May. Metgasco wants to meet Government on damages, prefers an out-of-court settlement, and is ready to drill Rosella.

regulatory community update

Justice Button found the Rosella suspension unlawful, procedurally unfair, and that the regulator confused consultation with persuasion. Costs went to Metgasco, which will seek compensation. It wants to talk to Government before drilling again in the Northern Rivers.

regulatory community update

The NSW Supreme Court rules in Metgasco's favour on the Rosella suspension, and the drilling suspension is lifted. This resolves the case heard in October 2014. Metgasco is reviewing the decision in detail before a fuller response.

regulatory community update

Metgasco terminates the Elk merger because the oil-price condition was triggered and it judges the chance of acceptable financing very low. Elk has 30 days to repay the loan ($1.69m drawn of $2.5m). Metgasco will keep seeking value from its NSW acreage and non-NSW opportunities.

material agreement termination

Elk Petroleum announces an all-scrip merger with Metgasco by scheme of arrangement, at about 0.67 Metgasco shares per Elk share. Metgasco holders would own about 77%. It adds the US Grieve oil project (production targeted 2017) and diversifies beyond NSW, extending the search for non-NSW assets.

business combination

Citing NSW political uncertainty, the board will impair capitalised exploration spending to nil and reclassify all reserves (2P 338 PJ, 3P 2,055 PJ) as contingent resources, giving 4,428 PJ of 2C. This reverses the reserve bookings carried since 2012. MHA says reserves can be restored later.

resource reserve update

Metgasco confirms confidential, without-prejudice talks with the NSW Government seeking an out-of-court settlement of the Rosella suspension dispute. It says court action continues and will not comment on the talks' status or outcome.

regulatory community update

Chairman says the suspension has cost about $3 million and, per the letter, about a 40% share price fall. Court hearing is likely no earlier than October. Staff cut further, cash conserved, and opportunities outside the Northern Rivers will be considered.

regulatory community update

The regulator says the Rosella drilling suspension will stay in place despite Metgasco's request for reconsideration. Metgasco is disappointed, rejects the consultation claim, and will continue its legal action if it finds the original errors unaddressed.

regulatory community update

Metgasco files for Supreme Court judicial review to set aside the Rosella suspension as unlawful and procedurally unfair, and will seek an expedited hearing. The regulator said it is inclined to maintain the suspension. Damages claim is being considered.

regulatory community update

ICAC will not hold an inquiry into Metgasco, saying the referral contained no information indicating corrupt conduct. This resolves the 15 May referral thread; the Rosella suspension remains in place and disputed.

regulatory community update

Chairman Len Gill calls the Rosella suspension a breach of process and denial of natural justice. He puts the direct loss at up to $3 million in cancellation costs, and says Metgasco has asked the Premier for an independent review and called the OCSG's actions unlawful.

regulatory community update

Metgasco says Rosella drilling will not proceed in the near term because police resources needed for safe drilling were reallocated, even though the regulator was still considering its submission. It is cancelling rig and service contracts to minimise costs.

drilling progress report

Metgasco says it is shocked by the NSW Government's suspension of Rosella drilling, which it says came without warning and without explanation. It warns of substantial costs, notes the letter says PEL 16 could be cancelled for non-compliance, and rejects an ICAC referral.

regulatory community update

NSW Office of Coal Seam Gas orders all work on Rosella E-01 suspended until Metgasco shows it complied with PEL 16 community consultation condition 8. Metgasco says it complies, and took a 48-hour trading halt as the rig was being mobilised.

regulatory community update

Atlas Drilling's Rig 3 is chosen for Rosella E01, to be supplied in mid-April subject to its current Queensland contract finishing. Metgasco also rebuts an activist shareholder letter it calls false and misleading and has referred it to ASIC.

contract award

Len Gill becomes chairman immediately; Nick Heath, chairman since 2010, will retire in the first half of 2014 but stays while Rosella-1 is drilled. Investment banker Peter Berry joins as non-executive director, following the proxy contest.

director officer appointment

The board urged shareholders to vote for all existing AGM resolutions and against the three director nominees put forward by a minority shareholder group. It said the group would take three of five board seats without a takeover offer, and that neither remaining director would stay. The AGM was on 29 October.

agm notice

Metgasco is starting preparations to resume exploration by drilling Rosella-1 in PEL 16, citing better political developments. Target depth is 2,100m, with a mean 1,304 BCF gas in place, described as commercially high risk. Final commitment awaits rig and permits; drilling is expected in the first half of 2014.

drilling scheduled

Shareholders holding over 5% have proposed Glenda McLoughlin, Michael O'Brien and Stuart Glenn as directors and will oppose Heath's and Short's election, the remuneration report and Henderson's share award. Metgasco advises holding off voting while it considers the notices.

agm notice

Annual report overview: cash about $21m at 30 June 2013. 2P reserves cut 21% to 338 PJ and 3P cut 23% to 2,055 PJ, largely from the proposed 2 km exclusion zone, and reversed if it is not adopted. Exploration assets are not impaired.

resource reserve update

Metgasco suspends its Clarence Moreton program because of regulatory uncertainty after the NSW Government's 19 February announcement. Staff will be cut, most wells rehabilitated, tenure kept with minimal work programs, and capital used to seek opportunities outside the basin.

other

Metgasco signed AJ Lucas to supply a KWL 1600 rig to drill three exploration core wells: two in PEL 426 and one in PEL 13. This is the first drilling rig commitment, resolving the open rig question for the core wells. Rig for laterals still to be committed.

contract award

The Share Purchase Plan raised $10.4m, on top of the $10.2m placement at $0.20 and existing cash. Funds go to three lateral CSG wells, three core wells, seismic and Rosella-1. Completes the raising that began in September.

capital raising announcement

Metgasco raised about $10m in a placement at $0.20 per share, plus a Share Purchase Plan for existing holders at the same price. Funds go to lateral CSG wells and licence commitments. Cash was $12.2m at 30 June.

capital raising announcement

NSW Government released new CSG regulations, renewed PEL 13 and 16 and granted Metgasco's first Petroleum Production Lease. This ends the licence-renewal freeze flagged in the June quarterly, though the CEO says the new rules may add cost and are cumbersome.

regulatory community update

Metgasco signed a binding 10-year gas sale agreement with Richmond Dairies, its first gas sale from Casino, with supply planned from 2012. It is subject to approvals for the supply infrastructure. This converts the earlier non-binding MOU.

contract award

The SPP raised $15.3m at $0.26, which with the $6.25m placement gives over $21m of new funding. Money goes to gas commercialisation, CSG drilling for NSW work commitments, Rosella E01 and working capital. Resolves the open SPP thread.

capital raising announcement

Harrier P01 is producing 230,000 scfd while still dewatering, above Corella P11's 210,000 scfd peak and the company's model. Corella P18 has exceeded 100,000 scfd against a 70,000 expectation. First stabilised-style gas rates for the multilateral pilot wells, with more expected.

production update

First certified reserves in PEL 13: 31.2 PJ 2P, 302.4 PJ 3P and 1,334.1 PJ 2C, from just two Bowerbird wells covering 21% of the licence. Total 2P rises to 428 PJ and 3P to 2,542 PJ. Resolves the expected June-quarter PEL 13 booking.

resource reserve update

Metgasco raised about $6.25m via a placement at $0.26 a share, well below the $0.45 plan price of 2010, with a share purchase plan of up to $15,000 per holder at the same price. Funds go to local gas supply, a 6MW first stage of the power station, PEL 13/426 drilling and the Rosella E01 well. Trading resumes.

capital raising announcement

Metgasco signed a non-binding MOU to supply gas to Richmond Dairies in Casino. A final agreement is expected by end 2011 and first sales by 3Q 2012, subject to approvals. It would be the company's first gas sale, though small in volume.

material agreement

WorleyParsons study found three LNG options economically attractive: Gladstone, Port of Brisbane, or floating LNG off NSW. At 1.5 mtpa and US$10/mmbtu, revenue would be US$29bn over 20 years. Assumed schedule puts first LNG in 2019 if work starts early 2012.

other

Peter Henderson started as Managing Director and CEO this week, earlier than the May 2011 date previously advised. David Johnson, the founding MD, will continue as a consultant to the company.

director officer appointment

Peter Henderson, a development manager at Premier Oil with 30+ years' experience, will become Managing Director around May 2011. Founding MD David Johnson stays until then and will consult afterwards. Pay is $400,000 a year. Marks a shift from exploration to production.

director officer appointment

Thornbill E01 in PEL 426, drilled to 846m, flowed gas immediately at an average 100 mcf/d over a 6-hour test, with no water and no CO2. It supports a 'dry' coal seam gas idea seen at Orara and Wyan. The rate is small and the test was short.

well test result

Metgasco signed an MOU with Norway-listed FLEX LNG to study a floating offshore LNG project using its Clarence Moreton gas. It is a second LNG option alongside the LNG Ltd study, with a preferred LNG option to be chosen in 2011 if feasible.

material agreement

LNG Ltd, Metgasco's largest shareholder with 5.03%, signed an agreement to jointly study sending Metgasco gas to LNG Ltd's Gladstone LNG project. Metgasco's internal estimate suggests enough gas for up to 3 mtpa over 20 years, needing about 3,600 PJ. This is a study only.

material agreement

Kingfisher Test 5 flowed gas at 168,000 scfd, well below the 2.97 million scfd of Test 1, and suggests natural fracturing. The company is designing a frac stimulation to trial on this zone, reflecting that many zones are tight gas.

flow test result

Deputy Chairman Nicholas Heath becomes Chairman from 1 July 2010, replacing founding chairman Dr Peter Power, who retires. Len Gill, a former TXU Australia CEO and current Alinta Energy chairman, joins as a non-executive director, bringing power-sector experience as the company moves toward development.

director officer appointment

NSW Planning approved the 30MW Richmond Valley Power Station near Casino, resolving the long-outstanding development approval. It would use about 2.3 PJ of gas a year. Final investment decision still depends on commercial negotiations and board approval.

regulatory community update

Independent certifier MHA raised PEL 16 coal seam gas 2P reserves 33% to 397 PJ (from 298) and 3P 46% to 2,239 PJ (from 1,538); 1P stays at 2.7 PJ. Delivers the upgrade flagged in January. Excludes Kingfisher; sell-down of PEL 16 continues.

resource reserve update

Kingfisher-E1's first test zone, a 5.3m interval in the Ripley Road sandstone near 2,044-2,050m, flowed a stabilised 2.97 million scf/day over 15 hours. This is only 5.3m of an estimated 30.3m net pay; testing continues.

flow test result

Kingfisher contingent resource raised to 77 Bcf (P50), from 37 Bcf in September 2008, with a range of 24 Bcf (P90) to 284 Bcf (P10). A further 108m of possible gas sand could lift it toward pre-drill estimates.

resource reserve update

The Share Purchase Plan was oversubscribed by 44%, with applications over $36m against the $25m cap, so applications will be scaled back. Shares are to be allotted on 10 December.

capital raising announcement

Metgasco confirms settlement of the $7m purchase of Molopo's 43.4% in PEL 426 and 25% CSG/50% conventional in PEL 13. This resolves the 2 October deal and gives Metgasco the remaining interests in both permits.

asset acquisition disposition

Metgasco declared Kingfisher-E1 a major gas discovery: multiple gas sands from 1,058m to 2,067m, at least 32m of gas-bearing sand, and a 25 km2 closure. It calls it NSW's first significant conventional gas find in over a century. Testing over three months.

drilling result

Metgasco launched a Share Purchase Plan letting shareholders buy up to $15,000 each at $0.45, about 13.5% below the recent average price, capped at $25m and not underwritten. Funds go to accelerated exploration, appraisal and development after the Molopo deal. Closes 3 December.

capital raising announcement

Kingfisher-E1 was at 485m. Corella-11 hit a new peak of 220,000 scf/day. Metgasco began seeking a partner for its PEL 16 coal seam gas assets, and plans the Corella P18 multilateral pilot after Kingfisher. The Molopo deal is described as acquired, though it is still conditional.

quarterly activities report

Metgasco agreed to buy Molopo's remaining interests in PEL 13 and PEL 426, giving it 100% of both permits (~4,900 km2). Price is $3m cash, $4m of Metgasco shares and a 2.5% royalty on 50% of PEL 13 conventional gas. Needs shareholder approval at the 26 November AGM and ministerial approval.

asset acquisition disposition

Metgasco engaged Lucas Rig 150 to drill Kingfisher-E1 in PEL 16 from late August/early September, to 2,100m, about 25 days. It appraises the 2008 Riflebird-E14 discovery; unrisked gas in place is 82 Bcf mean, 831 Bcf P10. Approvals are in hand.

drilling scheduled

Wyan-E1 reached 702m and intersected the Walloon coals as predicted. Tests showed sustained gas flows above 160,000 scf/day, about 175,000 at the end, extending gas evidence into PEL 13. Net coal is not yet known and the well is suspended.

flow test result

Metgasco is starting its 2009/10 program: more CSG pilot wells to repeat Corella-11, the Kingfisher-E1 conventional appraisal well (2,100m, next quarter), exploration coring and reserve-expansion drilling. Wyan-E1 starts first. Kingfisher has 41 PJ contingent resource (mean), 914 PJ upside.

drilling scheduled

Rights offer was 41% oversubscribed; 19,159,142 shares allotted on 30 April. Applications for extra shares were scaled back. This completes the roughly $15.7m raising.

capital raising announcement

Orara-E1 in PEL 426 (680m deep) flowed gas at up to 100 Mcf/day but rates fell in later testing, so it will be plugged and abandoned. Molopo took dilution, lifting Metgasco's PEL 426 stake from 50% to 56.6%.

drilling result

Raised about $8m via a placement of 19,992,000 shares at $0.40, plus a 1-for-8 rights offer of up to $7.7m at $0.40. Funds are for CSG production drilling, Kingfisher appraisal, pipeline work and working capital. This follows the 1P reserve milestone.

capital raising announcement

Metgasco raises $8.0m via a 19.9m-share placement at $0.40, plus a 1-for-8 rights issue at $0.40 for up to $7.6m. Funds go to CSG reserve drilling, Kingfisher appraisal, the power station and pipeline, and working capital. Price is well below the $0.58 shown in November 2008.

capital raising announcement

First certified 1P (proven) reserves of 2.7 PJ from the coal seam gas pilot wells in PEL 16, the first proven CSG reserves in the Clarence Moreton basin. This is a small step beside 298 PJ 2P and 1,538 PJ 3P, which are unchanged.

resource reserve update

Orara-E1 in PEL 426 drilled to 680 m and flowed gas to surface at about 119,000 scf/day, confirming Walloon coal measures in the basin's south, 140 km from Casino. Metgasco, operator, will earn extra interest from the 50/50 split with Molopo.

drilling result

Riflebird-E14 gas find named the Kingfisher Field, with a contingent resource of 12-70 bcf gas in place (37 bcf mid). The adjacent Mackellar Prospect is put at up to 410 bcf. This follows the May flow tests; a further appraisal well is still needed.

resource reserve update

Metgasco completed its Molopo farm-in work programs, now holding 75% of PEL 13 coal seam gas, 50% of PEL 13 conventional, and 50% of PEL 426. This confirms the seismic-based earn-in flagged in July; transfer documents are signed.

farm in farm out completion

PEL 16 2P reserves rose 21% to 298 PJ (264 PJ net to Metgasco), and 3P rose 11% to 1,538 PJ. More upgrades are expected over six months toward the 640 PJ 2P target. Corella-11's flow is up 30% in three weeks.

resource reserve update

Riflebird-E14, Metgasco's first conventional well in the Clarence Moreton Basin, flowed gas and water at up to 308,000 scf/day on its first zone test. Metgasco calls it a conventional gas discovery with positive implications for the basin; it holds 100%.

flow test result

The share plan closed with $2.6m raised from 3,777,226 shares at $0.70. A further 6,666,667 shares were placed with institutions at $0.75 to raise $5m, taking the total to $7.6m. Funds go to reserve development and pilot testing.

capital raising announcement

Metgasco offers eligible shareholders a Share Purchase Plan of $1,000 to $5,000 each at $0.70 a share, a 9.6% discount to the five-day average price. Funds go to expanding exploration, gas commercialisation and working capital. It closes 24 April 2008.

capital raising announcement

MHA certified PEL 16 2P reserves at 247 PJ (213 PJ net to Metgasco), up 27% from 195 PJ. 3P reserves rose about 20% to 1,389 PJ, and further upgrades were expected in coming months.

resource reserve update

NSW declared the 145km Casino to Ipswich pipeline a Major Project, which should streamline approvals; Commonwealth treats it as a controlled action. Re-entry at Corella-E6 now points to the I/J coal sequence, not volcanics, as the source of earlier gas kicks.

regulatory community update

Metgasco signed an MOU with BP Australia for a feasibility study on supplying over 15 PJ a year of coal seam gas, plus extending the planned Casino-Ipswich pipeline to BP's Port of Brisbane refinery. A second major gas customer alongside CS Energy; not yet a binding sale.

material agreement

MHA lifted PEL 16 2P reserves a further 50% to 194 PJ (182 PJ net to Metgasco), from 129 PJ in July. Management says it is on track for the 660 PJ 2P target within six months; more data is still to go to MHA.

resource reserve update

MHA certified PEL 16 2P gas reserves at 129 PJ, up 480% from 22 PJ (113 PJ net to Metgasco); 3P is largely unchanged at 1,156 PJ. First step toward the 660 PJ 2P target; more data goes to MHA in coming months.

resource reserve update

Metgasco committed to four more core wells, two funded by the Federal grant and two by MEL at about $1m total. Coal volumes up to 100% higher at some sites. The extension aims to prove reserves beyond the 660 PJ 2P target.

drilling scheduled

Corella-E6 hit an 11m thick, over-pressured, gas-charged fractured sandstone from 670m with strong gas kicks, showing characteristics of a conventional gas reservoir. Well finished at 771m with 42m of coal. A drill stem test is planned once equipment arrives.

drilling result

Metgasco won a Federal Government Sustainable Regions grant of about A$1 million for appraisal drilling at Riflebird-E3 and E4. This supports the 2P reserve build needed to supply the 30MW Richmond Valley Power Station.

contract award

Metgasco contracted Ensign to supply an ADR 100 rig from North America for pilot production drilling from August. The program starts with 6 pilot wells for the CS Energy joint venture and 2 for the Casino project.

contract award

Metgasco farms into Molopo's PEL 426, earning 50% by spending up to $500,000 (option to 75% for $250,000 more), and into PEL 13 conventional rights, earning up to 50% for $300,000. This extends the Molopo relationship beyond the PEL 13 coal seam gas deal.

farm in farm out agreement

Metgasco placed 15,576,923 shares at 78 cents to raise $12.15 million, about 15% of capital, from mainly Australian institutions. Funds go to energy infrastructure, more drilling and working capital, adding to the $0.32 share plan earlier.

capital raising announcement

Reserve expansion drilling has begun and is enlarged after the CS Energy deal: up to 12 core wells and 6 trial production wells, targeting up to 660 PJ of 2P reserves. CS Energy funds up to 10 core wells and the trial wells.

drilling scheduled

The share purchase plan closed heavily subscribed, with applications for over $4 million. It raised $4,266,500 by issuing 13,332,819 shares at $0.32, with about 72% of shareholders taking up the offer.

capital raising announcement

CS Energy farms into part of PEL 16, spending $11 million to earn an initial 15%, with a goal of 540 PJ of 2P reserves in 15 months. Heads of agreement to supply 18 PJ a year to Swanbank, worth over $1 billion. Major step for the company.

farm in farm out agreement

Australian Pipeline Trust (APA) is appointed preferred infrastructure partner for the 30 MW Richmond Valley Power Station, to build and operate it. A Development and Tolling Agreement is still to be signed. This answers the search for an investor partner.

material agreement

Share purchase plan lets existing shareholders buy up to $5,000 of shares at a 10% discount to market price, with the price set on 28 November. Funds go to reserve drilling, power station assessment and working capital. No total raise size is stated.

capital raising announcement

Metgasco signs Mitchell Drilling Contractors for the reserve upgrade program, up to four core wells starting early December. The aim is over 100 PJ of 2P reserves, up from 22 PJ today.

contract award

Placement of 11,775,000 shares at 20 cents raised $2.355m, about 15% of capital, well below the 30 cent price of the October 2005 raise. Funds go to drilling to expand 2P reserves toward 100 PJ and to working capital.

capital raising announcement

Middle Creek #1 reached 633m. Logs indicate the top seam is the Richmond, 6.95m thick and gas charged, with 16m more gas-charged coal below. Company says this adds about 150 km² of potential development area, extending the field 15 km south-west. Coring follows when a rig is available.

drilling result

NSW Planning Minister declared the Casino Gas Project and 30MW Richmond Valley Power Station a Major Project, which the company says will streamline approvals. Metgasco has begun inviting infrastructure investors to take part in ownership and development.

regulatory community update

Metgasco-Molopo Middle Creek #1 spudded 17 July in PEL 13, to about 600m, 23 km south-west of South Casino. This is the first reserve-expansion well and counts toward earning the initial 51% under the Molopo farm-in.

drilling spud

First flow rates from the horizontal wells: MSC-9 peaked at 101,000 scf/day and MSC-10 at 13,000 scf/day, still early in dewatering. MSC-9 is well above the 10,000–15,000 scf/day of the earlier vertical pilot wells, though MSC-10 had a gas block.

flow test result

Independent certification (MHA) gives PEL 16 South Casino 1,080 Bcf possible (3P) and 21 Bcf probable (2P) reserves, which the company says are the largest certified in NSW. The small 2P figure still needs to grow to support the planned 30MW power plant.

resource reserve update

Molopo says Metgasco has farmed into coal seam gas rights in PEL 13 (1,654 km²), earning 51% by funding 100% of a one-well and seismic reprocessing program. It can lift to 75% by spending a further $267,000.

farm in farm out agreement