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METGASCO LTD Share Issue/Capital Change 2021

Jul 5, 2021

65313_rns_2021-07-05_31025996-e036-461e-9a3d-3bc9922649ff.pdf

Share Issue/Capital Change

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ASX / MEDIA RELEASE

ASX Code: MEL

6 July 2021

Entitlement Offer

Seeking to raise approximately $4.58M through a 1 for 3 Fully Underwritten, NonRenounceable Entitlement Offer.

Metgasco Ltd (ASX:MEL) ( Metgasco or the Company ) advises that the Company will undertake a fully underwritten non-renounceable pro rata entitlement offer to Eligible Shareholders (being a shareholder registered at 7:00pm (AEST) on 9 July 2021 with a registered address in Australia or New Zealand) of Metgasco (subject to certain conditions), with an opportunity to acquire 1 New Share for every 3 Existing Shares held as at the Record Date at an offer price of $0.025 per New Share (Offer Price) raising approximately $4.58 million (excluding costs) without incurring brokerage or other costs. Each new share issued under the Entitlement Offer with also receive an attaching option on a 1 for 3 basis with a strike price of $0.031, expiring 31 December 2022.

In addition to funding the costs of the Offer, the proceeds of the Offer will be applied to fund:

Use of Funds Amount
Appraisal, Well Completion, Well Testing, Geophysics and Commercialisation activitiesin relation to the Company's Cooper Basin portfolio $2.36M
Pipeline and Service Infrastructure in relation to commercialisation of the Company'sCooper Basin portfolio, subject to Joint Venture FID $0.62M
Pre-drill preparation, Civil works and Rig contracting at Cervantes $0.83M
New business appraisal and evaluation, and for general working capital $0.55M
Legal, Underwriting and Capital Raising costs of the offer (best estimate)1,2 $0.22M

1 Lead Manager Underwriting fees pursuant to the offer are three (3) percent ($137,412). Pursuant to the Underwriting Agreement and Lead Manager Mandate, a further three (3) percent fee will be paid to the Lead Manager (up to a maximum of $137,412, assuming 100% shortfall) on shortfall shares placed in relation to any shortfall under the Entitlement offer. Legal fees of $15,000 have been estimated in relation to the Entitlement offer and related Underwriting documentation.

2 Application of funds raised pursuant to the Entitlement offer are best estimates only and may necessarily vary subject to operation developments.

Entitlement Offer Timetable*

Event Date
Announcement of Offer Tuesday 6 July 2021
Record Date for Offer Friday 9 July 2021
Offer opens Wednesday 14 July 2021
Offer closes at 5pm (AEST) Wednesday 28 July 2021
Results announced Monday 2 August 2021
Allotment of New Shares andquotation of New Shares sought Wednesday4 August 2021
  • All dates are indicative and subject to change at the discretion of the issuer.

This ASX announcement was approved and authorised for release by the 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

Chair + 61 402 091 180 [email protected]

Metgasco Ltd ACN 088 196 383

Level 2, 30 Richardson Street, West Perth, WA 6005 Tel:+61 8 6245 0060 [email protected] www.metgasco.com.au

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

Ken Aitken

CEO +61 8 6245 0062 [email protected]