METGASCO LTD — Capital/Financing Update 2009

Nov 12, 2009

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ASX / MEDIA RELEASE 13 November 2009

KINGFISHER E1- PROGRESS REPORT #5

Metgasco (ASX:MEL) today advises the following:

Following successful flow testing at the 1,274 metre interval, drilling continued to 1,395 metres. Due to high gas readings and the potential for hole instability the drilling fluid was converted to mud at this point.

Upon resumption of drilling, a subsequent strong gas kick was experienced at 1,452 metres. The indicated formation pressure was 2,200 psi. Drilling was halted to increase the mud weight to control the gas show.

Additional gas shows have been encountered in the subsequent intervals. The intersection of additional gas shows below the first primary objective of the well supports the prospectivity of the Kingfisher field.

The Company plans to log the well after drilling to TD, currently expected to be 2,100 metres. A decision on further testing of all the identified sands will be made following analysis of the logs.

As at 6.00am today, Kingfisher E1 was drilling ahead at 1,519 metres in a 6 1/8 “ hole.

Background

This well is located in PEL 16 approximately 2 kilometres from the town of Casino in northern New South Wales. Metgasco has a 100% interest in this well. The well is designed to appraise several zones including the Heifer Creek and Gatton sandstones; and the deeper Ripley Road Sandstone.

Metgasco estimates that the original gas in place (OGIP) potential of the entire Kingfisher structure is 82 Bcf (P50) and 831 Bcf (P10) with a contingent resource of 36.6 Bcf (P50) attributed to the upper gas sands intersected in the initial discovery well Riflebird E14.

Regular updates will be provided as to drilling progress for the well.

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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