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METGASCO LTD — Capital/Financing Update 2021
Sep 20, 2021
65313_rns_2021-09-20_4ac70fe5-8cf3-4cd9-98c9-fc21313d1091.pdf
Capital/Financing Update
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ASX / MEDIA RELEASE
ASX Code: MEL
21 September 2021
Cervantes: Letter of Intent signed
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Letter of Intent (“LOI”) signed with Strike Energy for rig slot option
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The LOI provides for the parties to negotiate a rig-sharing contract, in anticipation of drilling the Cervantes (L14) prospect in Q2 CY22
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Environmental approval anticipated to be complete by circa end November CY21
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Cervantes-1 is expected to address a gross Prospective Recoverable (P50) Resources of 15.3 mmbls*
Metgasco Ltd ( ASX:MEL ) (“ Metgasco ”) is pleased to provide an update on behalf of the Cervantes Joint Venture (“ CJV ”, or, “the Joint Venture”) partners Vintage Energy Ltd (ASX: VEN, “Vintage”) and RCMA Australia Pty Ltd (“RCMA”).
RCMA, on behalf of the Joint Venture, has signed a non-binding letter of intent (LOI) with Strike Energy Limited (“Strike”) that sets out the framework for negotiation of a rig sharing agreement to provide for drilling of the Cervantes-1 exploration well using the Ensign 970 rig.
The proposed agreement contemplates RCMA Australia, on behalf of the Joint Venture, entering into a standalone drilling rig contract with Ensign Australia Pty Ltd, once agreement has been reached with Strike.
The Cervantes-1 exploration well is planned to address gross recoverable Prospective Resources (P50) of 15.3 mmbbls oil* (Metgasco net 30%, and operator).
The regulatory environmental approval process is now in its final stage with approval anticipated by the of November CY21. Access track and well pad civils construction work are anticipated to begin in late CY21 /early CY22 subject to environmental approvals.
Metgasco will keep shareholders informed of material developments.
*Prospective Resources announced 10 September 2019
This ASX announcement was approved and authorised for release by the Board. For further information contact:
Philip Amery Chair + 61 402 091 180 [email protected] www.metgasco.com.au
Metgasco Ltd ACN 088 196 383 Level 2, 30 Richardson Street, West Perth, WA 6005 Tel:+61 8 6245 0060 [email protected]
Ken Aitken Managing Director +61 8 6245 0062 [email protected]