METGASCO LTD — AGM Information 2009

Nov 25, 2009

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2009 Annual General Meeting Managing Director’s review 26 November 2009 David Johnson, Managing Director

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• 2009 year in review

• Coal seam gas program

• Conventional gas program

• Infrastructure development

• Corporate activity

• Stakeholder activity

• 2010 year objectives

• Basin exploration program

• Field development planning

• Infrastructure & gas markets

• Corporate & stakeholder activities

.

• Question and answer session

2009 year in review

• Coal seam gas program

• Conventional gas program

• � Infrastructure development

• Corporate activity

• Stakeholder activity

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2009 year in review : coal seam gas program

� Further Gas Discoveries

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ORARA E1
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WYAN E1
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PEL 13, June 2009, Air drilled vertical TD 702m, 175,000 scf/d, No water

PEL 426, January 2009, Air drilled vertical TD 680m, 119,000 scf/d, No water

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2009 year in review : coal seam gas program

• The 2009 drilling program has confirmed that the Clarence Moreton is a gas charged basin

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CORELLA 11
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• CSG exploration wells have discovered gas over a large area

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WYAN E1
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• CSG resources are present at a significant scale and offer potential for large scale development

100km

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ORARA E1
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2009 year in review : coal seam gas program

• Initial 1P Reserve Certification milestone

• To date lead CSG pilot well Corella-11 has produced 70 mmcf of gas

• Associated relatively low water rates of 70bpd indicates minimal water handling costs

• The initial 1P Reserve Certification highlights the underlying value in Metgasco’s CSG acreage.

• Demonstrates that Metgasco is well advanced in understanding reservoir architecture and engineering solutions

• Transitioning from exploration and appraisal stage towards field development

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2009 year in review : coal seam gas program

• 2&3P gas reserves have increased

• Independently certified 2P gas reserves currently at 298PJ & 3P gas reserves at 1,538 PJ

• Opportunity for further reserve growth

• 2P reserves in 5 of a total of 11 blocks in PEL 16

• Represents 5-10% of total acreage

• � No current reserves in PEL 13 or PEL 426

Reserves have been certified by Mr Tim Hower of MHA Petroleum Consultants (Denver) who is a qualified person as defined under the ASX Listing Rule 5.11. Reserves have been developed within the guidelines of the SPE. Mr Hower has consented to the use of the reserve figures in this presentation.

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2009 year in review : conventional gas program

� Kingfisher E1 successful appraisal and deeper section new gas zones

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Successful appraisal Heifer Ck, Top Gatton (900 Mcf/d openhole test)

Further gas bearing sections intra Gatton 1452-1454m (2m) 4,400units 8.6ppg 1710-1712m (2m), 90 units, 9.7ppg 1851-1884m (33m),100 units, 9.7ppg 1930-1942m (12m), 80-212 units, 9.7ppg

Ripley Road intersected at 1973m

Following logging KE1 will be cased and cemented for reservoir testing of gas bearing intervals to determine reserves and derive an optimal production method

2009 year in review : infrastructure development

• Richmond Valley Power Station (RVPS)

• Exercised option for land purchase

• Final stage of EA process

• Lionsway Pipeline

• Landowner contact and consultation

• completed route studies, final route selection

• Studies for EA – soil & water, flora and fauna

• Northern Rivers Power Station

• Initial concept plans

• Gas sale discussions

• 2014 swaps into Queensland market

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2009 year in review : corporate activity

• Working towards broadscale development Metgasco now has a 100% undivided Working Interest in PEL 13, 16, and 426

• repurchase of Suncor GO Royalty and CSE 15% Working interest in PEL 16

• acquisition of MPO working interests in PEL 13 and 426

• facilitates a more manageable, coherent development path

• Careful management of costs through global financial crisis

• Preparation for CPRS

• Successful capital raising activities

• April 2009 oversubscribed $15.7 million placement and rights issue

• June 2009 $3.9 million with conversion of options by directors

• Director resignation of Rick Wood

• IPO founding director with significant upstream petroleum experience

• Established current operations team and laid platform for further development

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2009 year in review : stakeholder activity

• Continued interaction and support for local community groups

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Northern Rivers Science and Engineering Challenge

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Landscape prize Bentley art show

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Primex Information stall

2010 objectives

• Basin exploration program

• Field development planning

• Infrastructure & gas markets

• Corporate & stakeholder activities

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2010 objectives : basin exploration program

• Seek to identify productive CSG fairways

• Exploration experience now sufficient to plan and commence regional drilling for interpreted “hotspots”

Emerging Fairway

• Core drilling to generate 3P & 2P reserves

• Air drill verticals provide a cheap method of understanding productivity

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Potential Fairway

• Continue focus on well engineering and design

• I/J/K pilot production program

• Seismic to assist in fairway identification and mapping

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2010 objectives : basin exploration program

• Make further conventional gas discoveries

• Consolidated Prospects and Leads

• Risking and Prioritisation studies underway

• further seismic

• additional drilling

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Number Total Unrisked
PEL Prospects and Pmean OGIP
Leads Estimate
PEL 13 5 298 Bcf
PEL 16 8 473 Bcf
PEL 426 8 584 Bcf
Total 21 1,355 Bcf
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2010 objectives : field development planning

CSG resources Conventional resources Richmond seam optimal well design & cost reservoir engineering, additional seismic well locations, number of wells, field reserves Kingfisher reserves, production well design gathering systems (water,gas,compression) well locations, infield gathering systems economic case, full field production capability economic case, full field production capability

total production volumes component mix, flex capability total upstream capex,opex economic case and pricing requirement

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2010 objectives : infrastructure & gas markets

• As a cost competitive supplier, the opportunities are numerous…

• Currently planned and possible capacity:

• Project Capacity (PJ/a)

• � RVPS 2 2

• � LWP 27 - 220

• � NRPS 8 - 24 Total 37 - 246

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2010 objectives : corporate & stakeholder activities

• Metgasco has now commenced a process to identify potential partners for CSG interests in PEL 16

• appropriate time to encourage further investment from a compatible joint venture party in field development – Metgasco has proven gas reserves and large 2P reserves

• JV partners are being sought for up to 50% interest , incoming parties will be given opportunity to participate in downstream projects

• Announced an SPP to raise a maximum of $25m to provide shareholders an opportunity to support the company though next phase of growth in transition from exploration and appraisal to production

• As the transition from exploration and appraisal to production occurs, further interaction with stakeholders will be required

• landowners on whose land we operate

• indigenous groups whose presence we respect

• community groups which provide a local voice on various issues

• town councils who manage local regulations

• Federal, state and regional departments who regulate legislative requirements

� Search for replacement Director

Question and answer session

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Disclaimer

This presentation is being provided for the sole purpose of providing the recipients with background information about Metgasco Ltd (Metgasco). No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation (“forward-looking statements”). Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Metgasco, its Directors and Officers) which may cause the actual results or performance of Metgasco to be materially different from any future results or performance expressed or implied by such forward-looking statements.

This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

Due care and consideration should be undertaken when considering and analysing Metgasco’s financial performance. All references to dollars are to Australian Dollars unless otherwise stated.

To the maximum extent permitted by law, neither Metgasco nor its related corporations, Directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

This presentation should be read in conjunction with other publicly available material. Further information including historical results and a description of the activities of Metgasco is available on our website, www.metgasco.com.au.

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