METGASCO LTD — Investor Presentation 2021

Jun 21, 2021

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ASX / MEDIA RELEASE

ASX Code: MEL

22 June 2021

Investor Presentation

Metgasco Ltd (ASX:MEL) ( Metgasco or the Company ) is pleased to provide a copy of the investor presentation made at the Switzer Small & Micro Cap Virtual Investor Day on Tuesday 22 June 2021.

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

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

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https://www.linkedin.com/company/metgasco-ltd.

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

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L14 – Cervantes Oil Exploration project

ATP2021 – Two Vali gas discoveries ..third well underway. PRL211 – Odin-1 gas discovery Potential significant gas production hub emerging to assist east coast gas shortage

Company snapshot

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Metgasco’s gas exploration success allows line of sight to profitable business in H1CY22

Company overview

Substantial shareholders & Board

• ASX listed energy exploration company (ASX code: MEL)

• Experienced team focused on creating shareholder value.

• An exploration focus in the prolific onshore Australian Cooper/Eromanga and Perth basins.

• 100% success rate in discovering gas in first three wells drilled in ATP2021 and PRL211 licences to assess reserve upside of Vali and Odin. Vali-3 drilling underway.

• FID to commercialise Vali/Odin Q3 CY21 and gas production

• of gross 12mmscf/d targeted in H1 CY22

	Substantial shareholders & Board
	Melbana Energy Limited	20.00%
	Keybridge Capital Limited & Aurora Funds	14.77%
	Board and Senior Management	2.59%
	Top 20	50.52%
	Total shareholders	1,970

Source: Link Market Services ( 11 June 2021)

Quality exploration portfolio in Cooper and Perth basins

• Currently planning the drilling of high impact oil exploration well Cervantes-1 onshore in Perth Basin.

Financial information

Financial information
Share price (11 June 2021)	A$0.031
Number of shares	549.6m
Bonus Options (4c expiring 31/12/2021)	182.5m
Employee Performance Rights	10.4m
Market capitalisation	A$17.04m
Cash1	A$0.33m
BYE Shares2 Debt	A$0.78m A$nil

1 As at 31 May 2021

2 As at 11 June 2021

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Gas focus
Oil focus
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Metgasco’s Strategy is to deliver shareholder

returns from current and new E&P

assets/investments and be the partner of choice

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ATP2021- Vali Hub Reserves ….how big is the upside?

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Vali-2 delivers greater net gas pay than Vali-1 ST1 and is cased for production. Reserve increase anticipated

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• Vali-2 drilled to appraise Patchawarra gas discovery and assess potential for gas in a Toolachee formation four-way dip closure(not tested in Vali-1)

• Log data confirmed gas in both Toolachee and Patchawarra formations

• 150 metres of net gas pay interpreted primarily in Toolachee and Patchawarra formations

• Toolachee gas sample recovered to surface

• Vali-2 similar to Vali-1 ST1 stacked gas pay in Toolachee and Patchawarra formations

• Toolachee in Vali-2 six metres up-dip of Vali-1 ST1

• Cased for perforation, fracture stimulation and production

• Vali-3 currently drilling ahead with gas shows in Nappamerri and oil shows in multiple formations.

	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
	Net ATP 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

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ASX: MEL
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*Resources prior to drilling Vali-2 Refer to Reserve Notes on Page 20

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String of Pearls-Building a sizeable gas production hub

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Potential nine well Vali development - field life approx 20 years - 12mmscf/day average rate

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By assessing the resource upside ahead of first gas there is the potential to optimise the value of the ATP2021and PRL211 assets, with the following benefits expected to be realised:

– Appropriately sized flowline by better defining field volumes via further successful drilling.

Vali-1 ST1 test proved gas rate of circa 5 MMscf/day Targeting plateau field gas flow-rate of 12 MMscf/day Vali-2 and Odin-1’s success will better define resource upside in the area surrounding the Vali Field. This could add significant value to the Vali Field as Odin-1 could be tied into the Vali pipeline infrastructure

Preferred connection point at Santos operated Beckler field. Option for multiple spoolable composite lines. Gas marketing advantages – the Joint Venture will be in a stronger position to market larger volumes of gas, with the potential for improved terms and pricing.

– Exposure to rising gas prices gas prices are increasing, with forecasters and market commentators expecting this trend to continue.

The success to date on the CY21 drilling program is likely to increase the size of the prize . Anticipate JV FID approval Q3 CY2021 of new gas production hub development - First Gas anticipated H1 CY2022.

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*Subject to JV approval ,GSA signing ,tie-in tariff and regulatory approvals

Cooper Basin PRL211- Strategic Odin Farm-in

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• Odin-1 cased for production with gas shows in Toolachee, Epsilon and Patchawarra formations.

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• Metgasco (21.25%), Vintage(operator with 42.5%) Bridgeport(21.25%) free carry Beach Energy(15%) for Odin-1 drilling

• Odin-1 cased early June as a gas discovery for future production

• Wireline logging confirmed extensive gas pay in primary target Toolachee and Patchawarra formations, with gas pay also discovered in Epsilon formation

• Gas samples recovered from the Toolachee and Epsilon formations Interpretation of log, pressure and sample data underway to quantify pay thickness, column heights and compositions

• Future potential production from the Odin field could be tied-in to the Vali production network

• Presence of gas in Odin-1 a clear indication that hydrocarbons are still discoverable in areas previously worked over by other companies

• Upside stratigraphic potential

• Reserve certification expected in coming months

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1 Prospective resources prior to drilling .Refer to MEL ASX release 22 Nov 2019

Cooper Eromanga Basin ATP-2020

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• Farm-out process underway . Companies reviewing data room

• 2015 bid won by MEL

• ATP granted May 2018

• Located in SW QLD Cooper Eromanga Basin

• In close proximity to areas of hydrocarbon source and existing oil & gas fields

• 535 km[2] , 100% interest. Farmout process underway

• Underexplored region. MEL reprocessed 2D seismic

• Gas pipeline traverses permit & oil refinery only 100km away

• Primary gas target: Toolachee sands

• Primary Oil targets: Jurassic-Cretaceous sands

• Key prospect Loki . Shallow well - 1750 m. Low cost well

• Metgasco planning to drill well carried by farminee in CY22

Loki Prospective resources* – ASX release 31 March CY2021

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Loki
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Eromanga OIL	Loki Prospect–Hutton and Wyandra Sands	Loki Prospect–Hutton and Wyandra Sands	Loki Prospect–Hutton and Wyandra Sands	Loki Prospect–Hutton and Wyandra Sands
	Low (P90)	Best (P50)	High (P10)	COS(%)
OOIP MMbbl	7.5	26.7	57.8	Wyandra 15 Hutton 13
Recoverable Oil MMbbl	1.8	6.4	14.8

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Perth Basin – Cervantes – L14- Hunting for Oil in Kingia

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Kingia/High Cliff
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• Jingemia-1 intersected a 26m water bearing good porosity sand of Kingia/High Cliff Sand(outside of structural closure) reducing the risk of sand presence in Cervantes.

• Cervantes structure significantly shallower than Jingemia.

• Cervantes structure located in the gap between the oil discovery trend of the Hovea, Jingemia and Cliff Head Oil fields

Cervantes well COS of 28% with high chance of development due to proximity(3Km) to Jingemia production facility.

• Permian sandstone reservoir targets prolific producers in the Perth Basin

• Total oil produced from nearby fields in excess of 27 MMbbl of oil

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Perth Basin – Cervantes – L14

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Potentially one of the largest undrilled oil opportunities in the Perth Basin (Gross P50 OOIP 35mmbo), with geological similarities to nearby discoveries

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A A’
Cervantes
Dongara
King ia
HCSS
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ties in the Perth Basin (Gross P50 y discoveries	ties in the Perth Basin (Gross P50 y discoveries
Exploration Key Data
Country	Australia
Basin	Perth Basin
Licence	L14 Western Flank Cervantes
Prospect Targets	Cervantes-1 + right to second expfarm-in
Farm-in Promote	Farm in for 30% for funding 50% of 1st well- 2nd welloptiononsame terms.
Cervantes Owners	MEL 30%(well op),RCMA 40%,VEN 30%
Target Information	TD: ~2500-2700 Md Primary Targets: Kingia/HCSS/Dongara
Gross Prospective Resource-see table	P50: OOIP 35mmbo and Recoverable 15.6 mmbo,(arithmetic sum of Permian Zones)
Estimated spud date	Subject to rig availability & government regulatory approvals.
Proximity to Infrastructure	3km to Jingemia Plant – oil processing deal already in place

• Locally prolific Kingia Sandstone at shallowest depth in onshore Perth Basin and potential oil bearing.

• An independent report by RISC (refer Metgasco announcement 4 October 2019) calculated the Mid/P50 prospective resources on the Cervantes prospect of gross 17.4 mmbo representing a 14% increase on the P50 estimate of Metgasco.

• The regional cross section illustrates the tilted fault blocks of the hydrocarbon bearing Perth Basin

• Cervantes-1 similar structural features with successful wells due east

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High Gas demand in East Coast + Oil Price at 3yr High

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East Coast - New gas discoveries required to meet forecast demand

Perth Basin or Cooper Oil discovery a company game changer as oil prices at 3yr high

• Federal Govt has identified gas companies and the delivery of gas to market as an essential service.

• Forecast demand underpinned by LNG, expected to be steady over the long-term.

• Significant investment, needed to meet forecast demand, required for:

• Development of 2P undeveloped.

• Development of ‘anticipated developments.

• Development of new discoveries.

• Exploration and appraisal.

• Domestic gas prices are independent of the volatility of global oil prices.

• Recent ACCC papers indicate contract gas pricing in the $9-10/GJ range.

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AEMO states in its March 2020 Gas Statement of opportunities that: ”Actual operational constraints, particularly within the Victorian DTS, may lead to transportation limitations throughout the system, creating potential supply gaps during peak winter days from 2024”.

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Conclusions - Upcoming investment highlights

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Near term operational, corporate and macro news flows will provide a number of share price catalysts

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Well Results leading to FID Odin-1 net pay results + Vali-3 well results . Assess upside gas for Vali Hub (Q3 CY21) reserve potential and optimise flowline size & route. ATP-2021

Milestones to achieve Independent reserve certification of additional Vali Odin reserves. FID on Vali Prod Hub Secure gas sales agreement. Agree funding options on pipeline. ATP-2021/PRL211 Agree processing tariff with Santos. JV approve FID .

Complete ATP2020 farm-out process . Farm-out up-to 75% of the ATP2020 licence. Leading to drilling Loki or seismic in CY2022.

Farm-out of ATP-2020

Secure Cervantes-1 Sign drilling contract in 2[nd] Half CY2021. Finalise drilling plans Drilling Rig and regulatory approvals targeting spudding well in late Q4 Perth Basin L14 CY2021 or Q1 CY2022 subject to rig availability & govt approvals

1[st] Gas Production Install and commission gas pipeline and associated infrastructure Vali Production Hub to target 1[st] gas sales in H1 CY2022.

Review potential to drill additional gas and shallow oil prospects in ATP2021/PRL211 and select new drilling targets by Q2 CY2022. Review need for further 3D seismic.

Plan seismic program and/ or drill drilling targets in ATP2021 /PRL211

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Disclaimer / Reserves and Resource Notes

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• This presentation is being provided for the sole purpose of providing the recipients with background information about Metgasco Ltd (Metgasco) which is current only at the date of this presentation. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation (“forward-looking statements”). Such forward-looking statements are neither promises or guarantees and involve unknown risks and uncertainties and are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Metgasco, its Directors and Officers) which may cause the actual results or performance of Metgasco to be materially different from any future results or performance expressed or implied by such forward-looking statements.

• This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

• Due care and consideration should be undertaken when considering and analysing Metgasco’s financial performance. All references to dollars are to Australian Dollars unless otherwise stated.

• To the maximum extent permitted by law, neither Metgasco nor its related corporations, Directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

• This presentation should be read in conjunction with other publicly available material. Further information including historical results and a description of the activities of Metgasco is available on our website, www.metgasco.com.au.

• Cautionary statement prospective resources: the estimated 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. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. The prospective resource volumes quoted in this presentation for the Cervantes Prospect reference Metgasco ASX release of 10 September 2019 . The prospective resource volumes for the Odin exploration prospect reference Metgasco ASX release 22 November 2019. The reserves for Vali quoted in this presentation were independently certified by ERCE Equipoise Pte Ltd(ERCE) and were detailed in Metgasco ASX release 14 December 2021. The prospective resource volumes for the Loki prospect in ATP2020 reference release 31 March 2021.The reserves and resources have been classified and estimated in accordance with the Petroleum Resource Management System (PRMS). Metgasco has required material new data with the drilling of Vali-2 and Odin-1 ,however this data has not been fully interpreted and analysed at the date of this presentation. When this data has been incorporated into a resource revision a further announcement will be made.Resource estimates are net of shrinkage.

• Competent Person Statement: The reported Perth Basin prospective resource estimates are based on information compiled or reviewed by Dr. R. Willink who holds a PhD and a BSc (Hons) in Geology and is a member of AAPG and PESA. Dr. Willink is a Non-Executive director of Metgasco and is currently an Advisor on Exploration of the privately-owned Timor Resources and has worked in the petroleum industry as a practicing geologist for over 40 years. Dr. Willink has consented to the inclusion in this report of matters based on his information in the form and context in which it appears.

• Competent Person Statement : The reported Vali Gas field contingent reserve estimates are based on information compiled or reviewed by Adam Becis , Principal Reservoir Engineer with ERCE. 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 resource evaluation.

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