METGASCO LTD — Capital/Financing Update 2020

Dec 13, 2020

==> picture [261 x 37] intentionally omitted <==

ASX / MEDIA RELEASE

ASX Code: MEL

14 December 2020

Vali Field Reserves Independently Certified

• Independently certified Gross 2P Reserves of 33.2 PJ (8.3 PJ net working interest to Metgasco)

• Excellent conversion of 2C Contingent Resources to 2P Reserves realised

• Potential for future resource bookings in the Tirrawarra, Toolachee and Nappamerri formations

• Tie-in discussions for Vali Field to the Moomba gathering system are well advanced

• Gas sales negotiations ongoing

Metgasco Ltd ( ASX:MEL ) (“ Metgasco ”) is pleased to advise that ERCE recently completed an independent review of the Vali gas discovery (Metgasco 25%, Bridgeport energy 25% and Vintage Energy Limited 50% and operator) and subsequent flow results, and has certified 1P, 2P and 3P reserves for the Patchawarra Formation.

The Vali-1 ST1 well discovered stacked gas pay in the Nappamerri, Toolachee and Patchawarra formations, however, the scope of the ERCE reserves certification was for the Patchawarra Formation reservoir only. This reserves booking is the first for Metgasco and supports rapid commercialisation of the Vali gas field with its planned connection into the Moomba gathering system.

In its report, ERCE estimated gross 1P reserves for the Patchawarra Formation only of 12.3 billion standard cubic feet (“Bscf”), 2P of 30.3 Bscf and 3P of 78.9 Bscf, which equates to 1P of 13.4 petajoules (“PJ”), 2P of 33.2 PJ and 3P of 86.6 PJ.

Metgasco is hopeful that gas produced from the Vali Field may be materially greater than the 2P figure estimated by ERCE, with that upside to potentially come from stacked reservoirs including the shallower Nappamerri Group and Toolachee formations.

Metgasco was awarded 100% of the ATP2021 licence in 2018 and within a year successfully farmed out a 50% licence interest and operatorship to Vintage in May 2019, followed by a further 25% interest to Bridgeport in August. In a short space of time the JV, under Vintage’s operatorship, successfully drilled Vali-1 ST1, then stimulated and tested the well to realise a gas reserves booking. The farm-outs resulted in Metgasco being free carried for the drilling of the Vali-1 ST1 discovery well.

	Gross ATP 2021 Vali Gas Field Patchawarra Formation (1 December 2020)	Gross ATP 2021 Vali Gas Field Patchawarra Formation (1 December 2020)	Gross ATP 2021 Vali Gas Field Patchawarra Formation (1 December 2020)
	1P	2P	3P
Reserves (Bscf)	12.3	30.3	78.9
Reserves (PJ)	13.4	33.2	86.6
	NetATP 2021 Vali Gas Field Patchawarra Formation (1 December 2020)
	1P	2P	3P
Reserves (Bscf)	3.1	7.6	19.7
Reserves (PJ)	3.4	8.3	21.6

1. Reserves estimates reported here are ERCE estimates, effective 1 December 2020.

2. Metgasco is not aware of any new data or information that materially affects the Reserves above and considers that all material assumptions and technical parameters continue to apply and have not materially changed.

3. Reserves estimates have been made and classified in accordance with the Society of Petroleum Engineers (“SPE”) Petroleum Resources Management System (“PRMS”).

4. Net Reserves attributable to Metgasco represent the fraction of Gross Reserves allocated to Metgasco, based on its 25% interest in ATP 2021.

5. Allowance for Fuel and Flare has been made.

6. Conversion of Bscf to PJ has been estimated based on gas sampled and measured from Vali-1 ST1.

7. ERCE Reserves presented in the tables are the totals for all 20 Patchawarra reservoir intervals.

Ken Aitken, Metgasco Chief Executive Officer, commented:

“ This independent reserve booking by ERCE is a great result and demonstrates Metgasco’s ability to rapidly deliver on its strategy of identifying good onshore exploration opportunities and successfully drilling and evaluating prospects by collaborating with good quality partners to enable inaugural gas reserve booking.

This independent reserve certification is a key development that will allow the JV to confidently move forward with a financial investment decision to proceed with the project which is anticipated to deliver first gas production and revenue in mid 2021.

I believe Vali will be the first of many gas and oil fields to be developed in ATP2021 and will become a significant production hub in the future.”

This ASX announcement was approved and authorised for release by the Board.

For further information contact:

Philip Amery Chair + 61 402 091 180 philip.amery@metgasco.com.au www.metgasco.com.au

Metgasco Ltd ACN 088 196 383 Level 2, 30 Richardson Street, West Perth, WA 6005 Tel:+61 8 6245 0060 info@metgasco.com.au

Ken Aitken CEO +61 8 6245 0062 ken.aitken@metgasco.com.au