METGASCO LTD — Capital/Financing Update 2006

Nov 27, 2006

ARN 24 O88 196 383

Level 3, 32 Walker St, North Sydney, NSW, 2060 tel +61 2 9923 9100 fax +61 2 9923 9199 www.metgasco.com.au

28 November 2006

Australian Stock Exchange Via electronic lodgement

SHARE PURCHASE PLAN OFFER

OFFER PRICE AND UNDERWRITING

Metgasco Limited (ASX: MEL) announced on 13 November that it would be offering shareholders the opportunity to subscribe for additional shares in the Company via a Share Purchase Plan ("SPP").

The Directors have determined that the Offer Price under the SPP will be \$0.32 per Share, which is an 11% discount to the weighted average market price of Metgasco's shares traded over the 5 business days up to and including the Record Date.

The Company is pleased to advise that Taylor Collison Limited has agreed to underwrite the SPP up to the value of \$2,000,000. The underwriting agreement contains terms and conditions that the Directors believe are standard for an agreement of this type.

Full details of the SPP offer will be sent to shareholders on 1 December 2006.

For further information contact: Glenda McLoughlin David Johnson Managing Director Chief Financial Officer

Metgasco Limited ACN 088 196 383 Level 3, 32 Walker St, North Sydney NSW 2060 Tel: (02) 9923 9100 Fax: (02) 9923 9199 Website: www.metgasco.com.au