METGASCO LTD — AGM Information 2018

Nov 27, 2018

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Annual General Meetin g

28 NOVEMBER 2018

Agenda

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‒1 Chairman and CEO’s Presentation

‒2 Disclaimer

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‒3 Notice of Meeting
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‒4 Meeting and Voting Procedure

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‒5
Consideration of Reports
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‒6 Resolutions

‒7 Poll Close

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‒8
Close of Meeting
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Chairman and CEO’s Presentation

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Company Snapshot

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Metgasco is now an emerging exploration and development company

Company overview

• Experienced team focused on building value in the business

• MEL is fully funded for planned 2019 drilling and seismic activities

• SM74 exploration well planned to spud in Q1 CY 2019 by experienced Gulf of Mexico operator Byron Energy

• Exploration success at SM74 will lead to production revenue in 2019

• MEL 100% owner of two prospective gas prone permits in the Cooper Basin close to significant gas producing fields allowing infrastructure and access to East Coast gas markets

Substantial shareholders & Board

	Substantial shareholders & Board
	Keybridge Capital Limited	20.12%
	M&A Advisory Pty. Ltd. Mr. Philip Amery	19.59% 1.15%
	Dr. Robbert Willink	0.33%
	Mr. John Patton_*Mr. Patton is also Chairman of Keybridge Capital_	0.14%
	Top 20	59.30%
	Total shareholders	2,270

Source: Link Market Services (26 Nov 2018)

Share price performance since disposal of NSW assets:

Financial information

Financial information
Share price (26 November 2018)	A$0.043
Number of shares	390.6m
Market capitalisation	A$16.80m
Cash1	A$5.2m
Convertible Note (BYE)1	A$3.0m
Exchange Traded Bonds1	A$2.1m
BYE Shares1	A$13.9m
Debt	Nil

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Graph takes into account MEL’s 2.5c per share, $9.96m capital return to shareholders in November 2016

1 As at 30 September 2018

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Metgasco Business Transformation

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Since 2016 the company has transformed, via financial and new asset deals, to deliver a total shareholder return of >25%*

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Two high impact wells planned in the next 12 months
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4 2018: Cooper 2019 and
Return
Basin sub- beyond: Drill
3 surface SM74: Pivot to
2017: Cooper evaluation to producer status
2 Basin assets
identify on success,
2016: Staged
1 secured and
December 2015 - investment and prospective develop Cooper
$25m received for farm-in deal with Byron resources. Drill assets + pursue
NSW CSG assets Byron Energy investment one well in corporate
grown Bivouac Peak opportunities
▪ NSW bought back ▪ Jun 2016: Staged ▪ Frey-1 drilled ▪ Jul 2018: MEL farms-in ▪ Drill SM74 well and
PELs for $25m financial investment in ▪ MEL preferred to SM74 for a 30% develop and produce
▪ Oct 2015: MEL Byron including farm- tenderer on ATPs interest Byron discoveries on
tendered for QLD in rights, stock options 2020/2021 ▪ Oct 2018: Drill exploration success
Cooper Basin blocks and participation unsuccessful well at ▪ Secure farminees and
rights ▪ 6% stake in BYE
2020 & 2021 Bivouac Peak drill Cooper Basin
▪ Nov 2018: Prospective Well(s) (Q3/Q4 2019)
resource assessment on
ATP2021
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Two high impact wells planned in the next 12 months

Time

Funding options

Combination of in-house Fully Funded through 2018 Gulf of Mexico program and 2018-2019 Cooper Basin work program – cash, cash equivalents and financial assets of >$24m (September 30, 2018) funds + funding from new farm-in partners for long term Cooper Basin development

*on a reinvestment of distributions basis

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Strategy and Vision

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The Metgasco team is focused on continuing to deliver significant shareholder returns from current and new Exploration and Production assets

▪ Our Vision :

• Generate significant long term shareholder returns

• Strong and proven Capital Management focus, sustainable growth

• A focus on ethical conduct and governance

▪ Our Business:

• Diversify and manage risk – no wildcatting, never bet the company

• Aim to generate positive cash flows through participation in production, as well as make prudent financial investments – proven ability

• Invest in and develop long term production and exploration opportunities as part of our business

▪ Our Execution Strategy:

• A focus on the exploration and development of our own assets

• Share risk through partnerships and farm-outs

• Continue to review and seek quality farm-in opportunities – becoming a “non-operator of choice”

• An open and lateral approach to growing wealth with a sole focus on shareholder value – whether through financial, asset-level or corporate transactions.

• Refer to ASX release of 3 July 2018 “Metgasco Corporate Strategy Update”

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Byron Energy Financial Investment Summary

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Strong returns and a 30% interest in the highly prospective SM74 well drilling in Q1 2019. Well designed for early production potential on success

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Metgasco commenced its relationship by structuring an $8m development finance facility secured over Byron’s SM-71 discovery

Fully secured, with convertibility, an effective coupon of 14%, 10m options of BYE shares , farm-in and participation rights

In 2016 Metgasco announced its farm-in to Bivouac Peak (32 Mmboe total project prospective resource). On 11 October 2018 the Weiss Adler at al 1 well drilling was completed and deemed non commercial following a log evaluation. Well plugged and abandoned.

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In August 2017, Metgasco took up its participation right in Byron’s $26m 7c capital raise, becoming a 5.77% shareholder

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In July 2018, Metgasco announced its farm-in to Byron’s South Marsh Island 74 (“SM74”) project, for a 30% interest - drilling of this prospect, targeting a 5.2 mmbbl oil / 13 Bcf gas prospective resource, drilling is expected to start mid Q1 2019

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In September 2018, Metgasco elected to convert AUD 1m of convertible notes into BYE shares becoming a 6.05% shareholder

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Of our initial $8m loan, $4m has been repaid with the facility to be fully amortized by June of 2019 – relationship between the companies is strong and continues to evolve

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Byron provides a good example of how Metgasco’s team, by thinking laterally, has provided shareholders with leverage into an attractive portfolio of opportunities while optimising the use of company capital

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Shallow GOM: Bivouac Peak - Byron Energy Farm In

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As announced on 11 October, Weiss Adler et al-1 well was deemed uncommercial after log evaluation. The well was efficiently drilled under-budget by operator Byron and was plugged and abandoned

Exploration Key Data	Exploration Key Data
Country	USA
Basin	GOM Marshlands
Licence	Bivouac Peak
Well	Weiss Adler et al-1
Licence Entry	Farm in for 10% for funding 13.33% of first well
Licence Owners	Byron Energy 43%(operator), Otto Energy 40%, Metgasco 10%,Nola 7%
Target Information	TD: 18,234ft MD. Primary Targets: 17,125ft and 17,445ft
Gross Prospective Resource	125.6 Bcf and 11.3mmbbl
Estimated Drilling Time	Spud 25/8/2018 Reached TD 11 Oct 2018
Proximity to Infrastructure	~5km to Little Bay Field

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La Posada/La
Cantera
EUR >600BCFE
Dutch/Mary Rose
Cum Prod: 430BCF
+ 7.5mmbl
EUR >850BCFE
Atchafalaya Bay
Deep Little Bay Field
Cum Prod: >100Bcf Cum Prod: 45Bcf +
+ 0.6mmbl 5mmbl
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Shallow GOM: SM74 – Byron Energy Farm In

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Metgasco farmed in for a WI of 30% of Byron Energy operated SM74 block Drilling rig contracted and first exploration well planned for February 2019

Exploration Key Data Country USA Basin GOM Licence SM74 Well SM74 D-14 Licence Entry Farm in for 30% for funding 40% of first well Licence Owners Byron Energy 70%(operator), Metgasco 30% Target Information TD: 16,486ft MD. Primary Targets:~13,000ft, 13,600ft Gross Prospective Resource13 Bcf and 5.2 mmbbl Estimated Drilling Time A drilling rig has been contracted allowing the well to spud in circa Feb 2019 Proximity to Infrastructure Drilled from SM73 platform ~4000ft west of well		South Marsh Island 74

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ATP 2021

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ATP 2021 surrounded by commercial gas and oil fields – Cumulative gas prod of ~600Bcf within 20km of permit boundary

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ATP 2021
Vali Cum. Cum
Odin
Prospect Prod. Prod
Prospect
Field (Bcf) (mmbl)
Beckler 32.4
Bow 4
Burke 55.6
Crowsnest 11
Dullingari 307 11.05
Altar Dullingari North 81
Lead Epsilon 96.5
Moon 4.7
Roseneath 1.51
Wolgolla 9.3
TOTAL 603.01 11.05
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ATP 2021 Vali Prospect Depth Maps: E-W Seismic Line

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• ➢ Vali is a robust anticline with dual primary targets of the Toolachee and Patchawarra Formations

• ➢ The structure has been mapped on recently acquired 2016 3D Seismic

• ➢ The prospect is adjacent to the principal hydrocarbon source kitchen, the Nappamerri Trough

• ➢ The closest well Kinta-1, ~3km to the north, intersected gas charged sands in both the Patchawarra and Toolachee intervals.

• ➢ The Toolachee Formation has independent closure with an estimated depth to target of ~2249m.

• ➢ Vali is close to existing gas and oil infrastructure and pipelines.

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ATP 2021 Odin Prospect Depth Maps: NW-SE

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➢ Odin is a robust anticline with dual gas targets at the Toolachee and Patchawarra Formations.

• ➢

The structure has been mapped on recently acquired 2016 3D Seismic

• ➢ The Toolachee Formation has independent closure with an estimated depth to target of ~2301m.

➢ The closest well is Strathmount1 drilled downdip of the Odin crestal location at both Toolachee (~15 downdip) and Patchawarra Formations (~55m downdip)

➢ Strathmount-1 tested gas in the Patchawarra Formation and Tirrawarra Sandstone.

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ATP 2021 Strathmount-1 and Kinta-1 Reservoir Evaluation

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• ➢ Strathmount -1 Well not adequately evaluated due to wellbore issues, massive washouts leading to failed tests

• 21m of interpreted gas in Permian sands

• Sub-standard water based drilling mud resulted in an enlarged hole

• Enlarged hole led to unreliable logs

• Enlarged hole led to inability to perform 60% of the open hole tests on gas shows

• Two open-hole tests flowed gas to surface at a rate too small to measure (RTSTM) and the well was abandoned

• ➢ Kinta -1 A low permeability gas discovery which did not flow gas to surface due to poor logging, completion and testing practices

• 37m of interpreted gas in Permian sands

• Very high temperatures in the Patchawarra Formation resulted in electric logging mechanical problems and compromised logging data

• The case hole well test was poorly designed and executed which resulted in gas not flowing to surface

• ➢ Metgasco considers that the application of modern drilling, completion and testing practices planned for our 2019 wells will considerably improve the chances of gas discovery.

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ATP 2021 Prospective Resources - Raw Gas

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Vali Prospect*	Low(P90) Best (P50) High(P10)
Net OGIP (Raw) Bcf NetRecoverable Gas (Raw)Bcf	6.6 26.3 101.2 4.8 19.0 72.9

Odin Prospect*	Low(P90) Best (P50) High(P10)
Net OGIP (Raw) Bcf Net Recoverable Gas (Raw)Bcf	3.8 12.0 37.8 2.7 8.7 27.2

* The Prospective Resources estimates are probabilistic in nature, and are recoverable raw gas attributable to Metgasco’s 100% interest in ATP 2021 as at 26 November 2018. Raw gas includes the content of inert gases such as carbon dioxide which is known to be variable in the region. Prospective Resources as per Metgasco’s ASX release of 26 November 2018

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Cooper Basin ATP 2020: Local Fields and Discoveries

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Oil and gas fields/discoveries/shows to west, north and east - pipeline across block

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Tamarama 1 : Cocos 1 :
Basin centred gas discovery Flowed Gas on test
Recovered gas on test.
Mt Howitt:
Whanto Gas Field Cum Gas: ~1.4 Bcf
Cum.Gas:~ 0.7 Bcf Online: 2015
Online: 2015
Sheoak 1 :
Toby Oil and Gas Field :
Flowed gas on test
Cum Gas.: ~2.5 Bcf
Cum Oil: ~ 0.04 mmbb l
Online: Gas: 2015 Vernon :
Oil: 1988 Flowed gas on test
Arima 1 :
Wareena Gas Field : Gas shows
Cum Gas: ~7.4 Bcf
Online: 2011
Boldrewood 1:
Oil shows
Ghina-1
Cased as Toolachee gas discovery ATP
2020 Triodia 1:
Oil shows
Kercummura-1:
Oil recovered on test:
Caracal 1:
Oil recovered on test
Tartulla Gas Field :
Cum Gas: ~ 14Bcf
Online: 2005
Hooley 1:
Multiple oil shows
Leads
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ATP 2020: Loki Lead

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Multiple exploration targets with oil and gas potential - Close to existing infrastructure

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Exploration Key Data
Country Australia
Basin Cooper/Eromanga Independent 4 way dip
Licence ATP 2020 closure P90
Well Loki Lead
Licence Entry QLD Government Gazettal P50
Licence Owners Metgasco 100%
Native Title Agreement In place P10
Loki Lead
TD: ~1750mMD.
Primary Targets:
Target Information
Cret - Jurassic sands for oil,
Stratigraphic
Toolachee Formation for gas component of trap
Indicative P50 OGIP + OOIP 17Bcf + ~ 13 mmbls
Estimated Spud date 4Q 2019
Proximity to Infrastructure Pipeline traverses permit
Buckaroola-1 Loki Anticlinal Lead Hooley-1
P10 Permian pinchout edge
~40km
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ATP 2020 Seismic Reprocessing and Planned Acquisition

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• ➢ Re-processing of 2D seismic over the Loki Lead is currently underway.

• ➢ Acquisition of 2D seismic is planned for 2Q 2019.

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2018/2019 Indicative Timeline

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Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Interpret 3D seismic Farm-out Land access &
Drill & evaluate If discovery,
process Gvt approvals
develop &
produce
Well planning
Identify prospect
Land
Review leads and Farm-out process Acquire Interpret Govt. approvals Drill well
access/
develop prospects
seismic seismic & well planning
seismic
Seismic
reprocessing
Oil & Gas
MEL ATP 2021 Cooper Basin
Oil & Gas
MEL ATP 2020 Cooper Basin
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• Subject to farm-in

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Conclusions - Upcoming Investment Highlights

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Near term operational, corporate and macro news flows will provide a number of share price catalysts

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CORPORATE Two more quarterly $1m Byron loan re-payments

SM74 exploration well 30% MEL owned – plan to start drilling in Q1 CY 2019. Rapid tie-in USA GOM Exploration Well production potential due to drilling from nearby monopod.

FARM-OUT TO PARTLY Finalise Cooper Basin leads and prospects in ATP 2020/2021 FUND 2019 EXPLORATION Engage with potential farm-in partners.

Potential BD Opportunity Continuing to evaluate new acquisition opportunities Ongoing

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Disclaimer / Prospective Resource Notes

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• This presentation is being provided for the sole purpose of providing the recipients with background information about Metgasco Ltd (Metgasco) which is current only at the date of this presentation. 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 neither promises or guarantees and involve unknown risks and uncertainties and 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 is not an offer or recommendation to purchase or subscribe for securities in Metgasco, nor is it an invitation to any person to acquire securities in Metgasco.

• 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.

• Prospective resource estimates in this report for the Bivouac Peak and SM74 projects were included in Byron Energy’s ASX release, Byron Energy Limited’s (ASX:BYE) ASX release, Byron Energy Independent Reserves and Resources, dated 28 September 2017, based on the independent reserves and resources estimates prepared by Collarini Associates, based in Houston Texas USA (refer to the Company’s ASX release dated 28 September 2017).

• Cautionary statement prospective resources: the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

• Competent Person Statement: The reported Cooper Basin ATP 2021 prospective resource estimates are based on information compiled or reviewed by Dr. R. Willink who holds a PhD and a BSC (Hons) in Geology and is a member of AAPG and PESA. Dr. Willink is a Non-Executive director of Metgasco and is currently an Advisor on Exploration of the privately-owned Timor Resources and has worked in the petroleum industry as a practicing geologist for over 40 years. Dr. Willink has consented to the inclusion in this report of matters based on his information in the form and context in which it appears.

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