METGASCO LTD — Capital/Financing Update 2007

Nov 19, 2007

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ASX ANNOUNCEMENT

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20 November 2007

DRILLING REPORT

Metgasco (ASX:MEL) is pleased to advise progress on the first SIS well of the pilot production program. The first well Corella P-11 aims to test the gas productivity of the Richmond coal seam. The well is nearing final inseam objective. The next well is Corella P- 12 which is to be drilled from the same surface location. Corella-P12 aims to test the gas productivity of the Tomki coal seam at estimated total vertical depth of 404 metres.

Once both of these wells are completed, the Company will commence the dewatering and production testing process. 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: The Richmond coal seam was intercepted at 362 metres total vertical depth. 9 5/8 casing was then set prior to running back in the hole and resuming the in seam section. The in seam section is expected to be completed shortly after which the hole will be conditioned and liner inserted. For safety reasons, the well will not be hooked up until the completion of Corella P-12 which is to be drilled from the same pad. Corella-P12 Metgasco 85%, CS Energy 15% Location: PEL 16, Stratheden Joint Venture Area Spud Date: 30 October 2007 Status: Drilled to 150 metres and casing set and cemented. 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.

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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