Metgasco : Quarterly Activities and Appendix 5B June 2022

ASX / MEDIA RELEASE

Metgasco MD Ken Aitken: "Eastern Australia requires multiple new sources of gas to help alleviate the current supply/demand imbalance and the commercial value drivers were compelling for the PRL211 JV to decide to fast track the work needed for a commercialisation decision to bring Odin uncontracted gas to market via the Vali pipeline infrastructure. The JV is targeting that the Odin gas discovery to be brought nline asap in the 2nd half of CY2023, subject to the outcome of the concept engineering work about to commence and subsequent project gateways and project work. Vali Operations on the ground are progressing with the completion of stimulation operations and the commencement of the well completion campaign. Metgasco looks forward to receiving maiden revenue in October following the safe and

successful pipeline/ facilities installation and commissioning work planned in the September quarter"

K y activities for the quarter ended 30 June 2022 ("Quarter") comprised:

Vali (ATP2021):

• Significantly advanced procurement and planning for the well completion and the pipeline installation project to be completed in the September quarter

Odin (PRL211):

• Received ministerial approval to acquire net 3.75% in PRL211 licence including the Odin gas field
• The PRL 211 Joint Venture has resolved to immediately pursue commercialisation of the Odin gas field, through connection of Odin-1 to the Vali pipeline facilities
  o The Odin gas resources are uncontracted and due to the ongoing East Coast gas crisis, multiple gas customers are interested in the Odin gas

The Quarter's activities are detailed below:

Cooper/Eromanga Basin Exploration Licence - ATP2021:

ATP 2021(Metgasco 25%, Vintage 50% and operatorship, Bridgeport (Cooper Basin) Pty Ltd 25%)

ATP2021 is located in Queensland adjoining the Queensland- South Australia border (see Figure 1 below). ATP2021 contains the Vali gas field, discovered by Vali ST1 in January 2020 and successfully appraised onlyby Vali-2 and Vali-3 in the June and September quarters of CY2021. The field has three cased wells

available for future gas production.

usepersonalFigure 1: Cooper Basin permits PRL 211 and ATP 2021 including well locations Odin-1,Vali-1 ST1, Vali-2

and Vali-3 Source: Vintage

The 2P reserve of the Vali field is 101.0 PJ (25.2PJ net to MEL) independently certified and booked by

Notes:

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2.

3.

4.

5.

6.

onlyActivity during the quarter was focussed on the commercial agreements and progressing well delivery and

preparation for pipeline and associated facilities project works to enable commencement of gas supply from Vali as detailed below.

Gas Sales Agreement with AGL for supply of gas from Vali

The Gas Sales Agreement ("GSA") with AGL Wholesale Gas Limited ("AGL") announced 23 March 2022 became unconditional during the quarter following execution of an upstream transportation and processing term sheet on 19 April with the South Australian Cooper Basin (SACB) JV.

useD ring the quarter, and consistent with the GSA, the full $15 million pre-payment payable to the ATP2021

The contract provides for the sale of between 9 petajoules (PJ) and 16 PJ of gas produced from the Vali Gas Field over approximately 4.5 years from field start up to end calendar 2026. The supply of gas under the GSA will constitute approximately 9% to 16% of the Vali field's 2P reserves. Metgasco has a 25% interest in ATP 2021. The terms of the GSA reflect the Heads of Agreement between the joint venture and AGL announced 6 December 2021, following a competitive process.

joint venture was received. The prepayment is to be applied specifically to capital expenditure to take Vali

personalto first gas.

The contract has a multi-tier pricing structure with the first tier applicable to a monthly base supply volume

e ch month, which allows for the prepayment amount to be allocated.

2 d tier pricing, which is 100% payable in cash, will be applied to gas supplied in excess of the monthly base supply volume.

Pipeline, facilities and well delivery project update

Activity during the quarter saw completion of the fracture stimulation campaign, and achievement of readiness for the well completion campaign, which commenced on 3 July.

A Master Services Agreement has been signed with a construction contractor for pipeline installation and

facilities construction. Pipeline construction is expected to commence in mid-August and be of four to six w eks duration.

Facilities construction is expected to commence in September. A phased construction schedule has been

adopted to optimise for the earliest production and delivery of gas around delivery dates for equipment and

phase will be used initially for commissioning of facilities and pipeline and line-pack prior to supply to AGL under the GSA.

Formal application for the issuing of pipeline licences for the Vali-Beckler pipeline was made to the state governments of Queensland and South Australia.

ATP 2021 also offers other drilling targets. Seismic acquisition and interpretation are required to identify optimal locations.

Cooper/Eromanga Basin Exploration Licence - PRL211:

PRL 211 (Metgasco 25%*, Vintage 50%* and operatorship, Bridgeport (Cooper Basin) Pty Ltd 25%*)

PRL 211 lies in the South Australian Cooper Basin, with the licence's eastern boundary adjacent to the ATP 2021 western boundary (see Figure 1). The licence is in close proximity to the South Australian Cooper Basin's Joint Venture's gas production infrastructure at the Beckler, Bow and Dullingari fields. The Odin Gas Field, discovered by the PRL 211 Joint Venture in 2021, is located in both PRL 211 and ATP 2021 on the

southern flank of the Nappamerri Trough in the Cooper Basin.

onlyThe Toolachee and Epsilon formations were successfully flow-tested at Odin-1 in the final quarter of CY

2021, with a stable rate of 6.5 million standard cubic feet per day recorded at a flowing wellhead pressure of 1,823 psi through a 28/64" fixed choke. At the end of the flow period, a multi-rate memory production log was acquired, which confirmed gas was being contributed from each of the perforated Epsilon and Toolachee formations.

Independent Certification of resources at Odin by ERC Equipoise Pte Ltd ("ERCE") were announced to the ASX on 16 September 2021 and shown in Table 3&4 below; (Refer to 16 Sept 2021 announcement for

resource notes).

Table 3&4 - Odin gross and net Contingent Resources:

*On 27th May the PRL 211 Joint Venture parties received ministerial approval for the transaction announced on 29 March to acquire their respective share in Beach Energy's 15% interest in proportion to their existing h lding with the result of the transaction being the following equity interests in the PRL: Metgasco 25%; Vintage 50% and Operator; Bridgeport 25%.

The effect of this transaction is to redistribute approximately gross 3.1 Bcf of the 2C Contingent Resource previously attributable to Beach Energy in PRL211 to the joint venture parties.

Metgasco's net share of 2C Contingent Resource at Odin will increase by 0.77 to 8.77 Bcf as a result.

Consideration for the transaction has been structured to align with successful production from Odin with an initial milestone payment by the joint venture of gross $1 million with further gross $1.25 million payable in two instalments on achievement of production milestones. Metgasco will spend a total of $562,500 to own a further 3.75% of the PRL211 licence.

Odin-1 is, awaiting completion, which is scheduled to be conducted in the well completion campaign currently underway.

ForThe PRL 211 Joint Venture has resolved to pursue commercialisation of the Odin gas field, through c nnection of Odin-1, at the earliest opportunity. To this end, the FY23 budget, adopted by the joint venture subsequent to the end of the quarter, provides for Concept Engineering for connection of the Odin gas field to the Vali-Beckler pipeline and preparation of a commercial plan for marketing of the field's gas.

It is anticipated these initiatives, followed by the securing of a Gas Sales Agreement, could see field work begin in the second half of FY23 (subject to JV and regulatory approvals) and gas sales from Odin commence in the first half of FY24.

Cooper/Eromanga Basin Exploration Licence - ATP 2020:

The ATP2020 licence is 535km2 in area and was granted 100% to Metgasco in 2018.

Metgasco's sub-surface team reviewed/interpreted the available offset well geology and geophysics (including the re-processing of 2D seismic) and identified the Loki prospect. A comprehensive farm-out process of the ATP2020 Licence over the last 2-3 years was also undertaken. Multiple farm-in discussions have been held with industry counterparties, unfortunately there was no interest to share seismic costs or onlydrilling risk. The consistent feedback from all parties that the exploration risk of drilling the Hutton and Toolachee reservoirs in the Loki prospect was too high and the Cretaceous oil reservoir was negatively impacted by more than 50% being outside of the licence with no certainty on gaining licence tenure on the

open acreage.

The board of Metgasco decided to fully relinquish the permit back to the Queensland government to allow the Company to focus, and capital to be spent on developing the Vali and Odin fields, and wider exploration prospectivity in ATP2021 and PRL211.

useP rth Basin L14: Cervantes Exploration Well:

On 7 April Metgasco announced that the well was to be plugged and abandoned after failing to encounter hydrocarbons. The well results confirmed the presence of a robust structure and reasonable reservoir development in the targeted sands Permian sandstone objectives however Logging While Drilling ("LWD tools") disappointingly identified that the reservoir sands were found to be water-wet.

The Cervantes -1 was drilled safely and efficiently in approximately seventeen days under the planned budget.

personalCorporate Activities:

Business Development Opportunities:

During the quarter Metgasco continued to review new business development opportunities, as well as p tential new areas of business consistent with the Company's strategic objectives and the evolving energy sector backdrop.

Cash position:

The Company ended the Quarter with a cash balance of A$3,635,270 and with no debt. The following is a reconciliation of the Company's cash position from 1 April to 30 July 2022:

For

Notes Pertaining to Quarterly Cashflow Report (Appendix 5B):

Item 6.1: The aggregate amount of payments to related parties and their associates of $128,913 relates to remuneration payments made to Directors.

Shareholder base:

At 30 June 2022, Metgasco had 930,002,677 shares on issue and 2,381 shareholders. Its top 20 holders held 435,367,531, or 46.81% of the Company's issued capital.