METGASCO LTD — Capital/Financing Update 2008

May 14, 2008

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ASX ANNOUNCEMENT

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15[th] May 2008

CLARENCE MORETON BASIN 2008 SEISMIC ACQUISITION PROGRAM COMMENCES

Metgasco (ASX:MEL) is pleased to advise that line clearing and surveying for the Clarence Moreton Basin (“CMB”) seismic program commenced this week.

This program is the most detailed and extensive new seismic acquisition program to be undertaken in the basin for the past 10 years. The program entails acquiring 127 line kilometres of new 2D seismic and is being carried out by Terrex Seismic.

The seismic acquisition program will be undertaken within PEL 426, PEL 13 and PEL 16 within the CMB.

The completion of this program will entitle Metgasco to earn a 50% interest in PEL 426 and a 50% interest in the conventional hydrocarbon rights in PEL 13.

The majority of this survey will be over existing leads and prospects.

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

Metgasco Limited ACN 088 196 383 Level 9, 77 Pacific Highway North Sydney NSW 2060 Tel: (02) 9923 9100 Fax: (02) 9923 9199 Website: www.metgasco.com.au

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