METGASCO LTD — Capital/Financing Update 2007

Nov 11, 2007

ASX ANNOUNCEMENT

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12 November 2007

COMMENCEMENT OF PILOT PRODUCTION DRILLING

Metgasco (ASX:MEL) advises that pilot production drilling has commenced at North Casino.

Pre-collar drilling has been completed on four wells, with drilling commencing today on the fifth well. The Ensign ADR 100 rig is currently drilling ahead at Corella-P11.

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 ahead at 215 metres.
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 surface 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 surface casing set and cemented.
Corella-P13	Metgasco 85%, CS Energy 15%
Location:	PEL 16, Stratheden Joint Venture Area
Spud Date:	12 November 2007
Status:	Drilling commenced today.
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 surface casing set and cemented.

In addition, the Company has completed permeability and stress testing at Corella-E7 and is currently undertaking testing at Corella-E10.

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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