METGASCO LTD — Capital/Financing Update 2009

Dec 17, 2009

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ASX / MEDIA RELEASE 18 December 2009

CORELLA P18 PROGRESS REPORT

Metgasco (ASX:MEL) advises that that its next generation coal seam gas (“CSG”) pilot well, Corella P18 has now completed the vertical offtake well and has commenced drilling the initial component of the surface to inseam well. This section is designed to intersect the vertical offtake prior to drilling the in seam section.

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:+61 2 9923 9100 Fax: +61 2 9923 9199 Web: www.metgasco.com.au

Metgasco Limited

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