METGASCO LTD — Capital/Financing Update 2020

Mar 2, 2020

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ASX / MEDIA RELEASE ASX Code: MEL

3 March 2020

EXPERT REVIEW INCREASES VALI RESOURCES

• Gross 2C Contingent Resource of 37.7 Bcf (9.4 Bcf net working interest) independently certified and booked

• Resource estimate is 7% higher than pre-drill 2U Best Estimate

• Discovery close to infrastructure

• Marketing discussions commenced

• Testing and development plans being advanced

Metgasco Ltd (ASX: MEL) (“Metgasco” or the “Company’’) is pleased to announce its first Cooper Basin gas 2C Contingent gas resource booking less than 9 months after farming out 50% and operatorship of ATP2021 to Vintage Energy (ASX:VEN) and a further 25% to Bridgeport (Cooper Basin) Pty Ltd 3 months later. The Vali-1 ST1 exploration well (see map below) reached TD in January 2020 discovering gas in the Patchawarra formation which was the primary target. An independently certified gross 2C Contingent Resource of 37.7 Bcf(9.4 Bcf net working interest to Metgasco) has been booked for the Vali gas discovery, which is held by the ATP 2021 Joint Venture (Vintage 50% and operator, Metgasco Ltd (ASX:MEL) 25% and Bridgeport (Cooper Basin) Pty Ltd 25%).

ERC Equipoise Pte Ltd (“ERCE”) has independently certified 37.7 Bcf of gross 2C Contingent Resources in the Patchawarra Formation of the Vali gas field located in the Southern Flank (ATP 2021) of the Cooper Basin in southwest Queensland. Metgasco has a 25% net working share in ATP2021 and accordingly a net 2C Contingent Resource of 9.4 Bcf. The Vali-1 ST1 operations were conducted by the Vintage management team and its contractors with no safety or environmental incidents. The well discovered approximately 80 metres of net gas pay in a well-defined four-way structural closure in the Patchawarra Formation.

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Source: Vintage Energy, Metgasco

ATP2021 Vali Gas Field Patchawarra Formation as of 1 March 2020	ATP2021 Vali Gas Field Patchawarra Formation as of 1 March 2020	ATP2021 Vali Gas Field Patchawarra Formation as of 1 March 2020	ATP2021 Vali Gas Field Patchawarra Formation as of 1 March 2020	ATP2021 Vali Gas Field Patchawarra Formation as of 1 March 2020	ATP2021 Vali Gas Field Patchawarra Formation as of 1 March 2020
Gas in Place (Bcf)			Unrisked Contingent Resources (Bcf)
Low	Mid	High	1C	2C	3C
34.0	84.2	216.0	15.2	37.7	97.0
ATP2021 Vali Gas		Field Patchawarra Formation as of 1 March 2020
Gasin Place (Bcf,25%MELshare)			Unrisked ContingentResources (Bcf,25%MELshare)
Low	Mid	High	1C	2C	3C
8.5	21.05	54	3.8	9.4	24.2

Notes

1. Gas In Place and Contingent Resource estimates reported here are ERCE estimates.

2. Gross Contingent Resources represent a 100% total of estimated recoverable volumes.

3. Resource estimates have been made and classified in accordance with the Petroleum Resources Management System (“PRMS”).

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

5. Volumes reported here are “unrisked” in the sense that no adjustment has been made for the risk that the project may not be developed in the form envisaged or may not go ahead at all (i.e. no Chance of Development factor has been applied).

6. Chance of Development for the Contingent Resources shown here has been estimated to be 85% by Vintage and agreed by ERCE. This is based on proximity to existing infrastructure, development of similar reservoirs by adjacent fields and high downstream gas demand.

7. Contingent Resources have been sub-classified as “Development Unclarified” under the PRMS by ERCE. 8. Contingent Resources volumes shown have had shrinkage applied to account for CO2 and include only hydrocarbon gas. No allowance for Fuel & Flare has been made.

8. ERCE GIIP volumes & Contingent Resources presented in the tables are the probabilistic totals for all 19 Patchawarra reservoir intervals.

9. Probabilistic totals have been estimated using the Monte Carlo method.

The joint venture is planning to stimulate and flow test the Patchawarra reservoir in Q2 CY2020 to gain further information on volumes and flow rates.

As this discovery is in the well-developed Cooper Basin, close to existing infrastructure and with multiple potential customers, operator Vintage has estimated a chance of development of 85%, with which ERCE has agreed. The Contingent Resources are sub-classified under the project maturity sub-class as described in the SPE Petroleum Resources Management System as “Development Unclarified” by ERCE and Vintage. The key contingencies are a final investment decision on development, committing to a Gas Sales Agreement and any other necessary commercial arrangements plus obtaining the usual regulatory approvals for production.

ERCE is an independent consultancy specialising in petroleum reservoir evaluation. Except for the provision of professional services on a fee basis, ERCE has no commercial arrangement with any other person or company involved in the interests that are the subject of this Contingent Resources evaluation. The work has been supervised by Mr Adam Becis, Principal Reservoir Engineer of ERCE’s Asia Pacific office with over 14 years of experience. He is a member of the Society of Petroleum Engineers and also a member of the Society of Petroleum Evaluation Engineers.

Ken Aitken, Metgasco Chief Executive Officer, commented:

“This independent study of contingent resources confirms the economic potential of the Vali gas discovery. Metgasco looks forward to a successful stimulation and test program in Q2 CY 2020 and progressing the field development with a sense of urgency to enable future gas production and revenue. The successful farm-out of ATP2021 and the contingent gas resources associated with the Vali discovery vindicate Metgasco’s partner of choice strategy. Metgasco would like to commend Vintage’s capability as an operator and their experience in delivering a safe and successful project to date”

This release has been authorized by the Metgasco Limited board

Contact and further information:

Metgasco welcomes shareholder communication and invites all interested shareholders to make contact at any time.

ENDS For further information contact: Philip Amery Chairman + 61 402 091 180 philip.amery@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

www.metgasco.com.au

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