METGASCO LTD — Capital/Financing Update 2006

Dec 21, 2006

22 December 2006

AUSTRALIAN STOCK EXCHANGE Via Electronic Lodgement

SHARE PURCHASE PLAN CLOSED HEAVILY SUBSCRIBED

Metgasco (ASX:MEL) is pleased to announce that the Share Purchase Plan announced on 13 November 2006 has closed with shareholders lodging applications for over \$4 million.

The offer closed on 18 December 2006 and raised \$4,266,500 by issuing 13,332,819 shares at \$0.32 per share.

The Company is extremely pleased with the positive response from shareholders, where approximately 72% of shareholders have taken up the offer.

Funds from the issue will be used to accelerate gas reserve expansion and additional commercial opportunities.

For further information contact: Glenda McLoughlin Chief Financial Officer Metgasco Ltd Tel: (02) 9923 9100
Fax: (02) 9923 9199

Metgasco Limited

Level 3, 32 Walker St North Sydney NSW 2060 Tel: (02) 9923 9100 Fax: (02) 9923 9199 Website: www.metgasco.com.au