METGASCO LTD — Capital/Financing Update 2007

Nov 27, 2007

ASX ANNOUNCEMENT

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28 November 2007

DRILLING REPORT

Metgasco (ASX:MEL) advises that it has successfully completed drilling its first SIS well of the pilot production program, Corella-P11. The Company is currently drilling its second SIS well of the program Corella-P12.

The following provides further detail on the status of the drilling program.

Corella-P11 Metgasco 85%, CS Energy 15% Location: PEL 16, Stratheden Joint Venture Area Spud Date: 17 October 2007 Status: Drilling completed. Production testing to commence during the coming weeks. Corella-P12 Metgasco 85%, CS Energy 15% Location: PEL 16, Stratheden Joint Venture Area Spud Date: 30 October 2007 Status: Drilled to 430 metres. Currently awaiting replacement mud-motor, scheduled to arrive today. Corella-P14 Metgasco 85%, CS Energy 15% Location: PEL 16, Stratheden Joint Venture Area Spud Date: 6 November 2007 Status: Drilled to 150 metres and casing set and cemented. Corella-P13 Metgasco 85%, CS Energy 15% Location: PEL 16, Stratheden Joint Venture Area Spud Date: 12 November 2007 Status: Drilled to 150 metres and casing set and cemented. Corella-P16 Metgasco 85%, CS Energy 15% Location: PEL 16, Stratheden Joint Venture Area Spud Date: 6 October 2007 Status: Drilled to 150 metres and casing set and cemented. Riflebird-P11 Metgasco 100% Location PEL 16, South Casino Spud Date: 20 November 2007 Status: Drilled to 150 metres and casing set and cemented.

For further information contact: David Johnson Glenda McLoughlin 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

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