METGASCO LTD — Capital/Financing Update 2019

Sep 30, 2019

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ASX Release

1 October 2019

ATP 2021 JV targeting Vali prospect

• ➢ Letter of intent signed for rig to drill Vali-1

• ➢ Vali-1 spud date expected late 2019

• ➢ Net recoverable prospective resource (2U Best Estimate) for the Vali prospect of 17.6 Bcf

As operator for ATP 2021, Vintage Energy Ltd (“Vintage”, ASX: VEN) is pleased to announce it has signed a Letter of Intent with Schlumberger to use their SLR-185 rig to drill Vali-1 (refer location map below), which is expected to spud later this calendar year. As announced to the market on 22 May 2019, Vintage will earn a 50% interest in ATP 2021 from Metgasco Ltd through contributing 65% of the cost of Vali-1 (up to gross cost of $5.3 million), paying for 65% of past exploration costs, and funding up to $70,000 of 2D and 3D reprocessing. Bridgeport (Cooper Basin) Ltd is also earning a 25% interest in ATP 2021 from Metgasco Ltd by contributing to the cost of Vali-1.

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The Vali structure is a robust anticlinal closure located in the southern part of ATP 2021 in the Queensland Cooper Basin. The Vali prospect is prospective for gas in Permian aged reservoirs, specifically the Patchawarra Formation. The Toolachee Formation is a secondary objective. These reservoirs are proven as producing reservoirs on the southern flank of the Nappamerri Tough, with over 600 Bcf of gas produced from fields within a 15 to 40 kilometre radius of the proposed Vali-1.

Vintage Energy Ltd (ACN 609 200 580) 58 King William Rd, Goodwood, SA 5034

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The Vali structure is identified on the 2017 Snowball 3D seismic survey (refer diagram below) and is approximately three kilometres from Kinta-1, which was drilled in 2005 and intersected gas charged sands in the Patchawarra and Toolachee formations.

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2U Best Estimate Unrisked Prospective Resources in Vali have been calculated to be 17.6 Bcf in the Patchawarra Formation net to Vintage (50% interest of 35.1Bcf once farm-in commitments met) based on mapping of the Snowball 3D seismic and incorporating the results of offset wells. Note the secondary target, the Toolachee Formation has a 2U Best Estimate of 1.5 Bcf net to Vintage (50% interest of 3.0 Bcf once farm-in commitments met). The Chance of exploration success is estimated to be 34% for both the Patchawarra and the Toolachee formations and the chance of a commercial discovery is high given the nearby infrastructure and market availability. Note the volumes and risking values stated are those of Vintage as operator of the joint venture.

	Vali Primary Target		Net 2U Best Estimate (50%)	2U Best Estimate (100%)
	Patchawarra Formation		17.6 Bcf*	35.1 Bcf*
* Estimate allows for shrinkage

Explanatory Notes

The estimate quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development.

These prospective resources are estimated as of September 27, 2019 and this is the first time that Vintage have reported resources on Vali. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. The resources have been classified and estimated in accordance with the Petroleum Resource Management System (PRMS). The

Vintage Energy Ltd (ACN 609 200 580) 58 King William Rd, Goodwood, SA 5034

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prospective resources have been estimated based on the interpretation of 3D seismic integrated with offset well data. Probabilistic methods have been used to estimate the prospective resource in individual reservoirs and the reservoirs have been summed arithmetically. It is expected that the prospect will be drilled in late 2019 and that no further material exploration activities, including studies, further data acquisition and evaluation work are to be undertaken prior to that activity.

Competent Persons Statement

The hydrocarbon resource estimates in this report have been compiled by Neil Gibbins, Managing Director, Vintage Energy Limited. Mr. Gibbins has over 35 years of experience in petroleum geology and is a member of the Society of Petroleum Engineers. Mr. Gibbins consents to the inclusion of the information in this report relating to hydrocarbon Contingent and Prospective Resources in the form and context in which it appears. The Contingent and Prospective Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resource Management System.

For more information contact:

Neil Gibbins Managing Director +61 8 7477 7680 info@vintageenergy.com.au

About Vintage

The natural gas supply crisis currently afflicting the eastern part of Australia and the energy market more widely have been the catalysts for the creation and ASX listing of Vintage, with Reg Nelson (former Managing Director of Beach Energy Ltd) the Chairman and Neil Gibbins (former Chief Operating Officer of Beach Energy Ltd) the Managing Director. The company has acquired high quality gas exploration and appraisal assets close to infrastructure with the potential for rapid development and the promise of early cash flow. Vintage will continue to identify and seek to acquire further high-quality gas exploration and production assets with a focus on those that offer the potential for accelerated pathways to commercialisation.

Oil potential in prominent onshore basins is also a key focus, particularly given the experience of Vintage team members in discovering and developing oil fields on the Western Flank of the Cooper - Eromanga Basins in South Australia.

Vintage Energy Ltd (ACN 609 200 580) 58 King William Rd, Goodwood, SA 5034

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