Metgasco Ltd (ASX:MEL), a Cooper Basin gas producer and explorer, has launched a renounceable entitlement offer at 1.1 cents per share on a 5-for-1 basis, with one free attaching option exercisable at 1.7 cents for three years issued with every new share, according to a company disclosure dated 10 November 2026.

Key Points

  • Entitlement offer priced at 1.1 cents per share on a 5-for-1 basis, described as a 31% discount to the last close.
  • One free attaching option exercisable at 1.7 cents for three years accompanies every new share issued; if all options are exercised, the company said this would raise approximately $3.1 million.
  • Glennon Small Companies (ASX:GC1) is converting up to $1.0 million of debt into shares at the offer price as part of the recapitalisation.
  • Metgasco holds a 25% interest in both the Vali (ATP 2021, Queensland) and Odin (PRL 211, SA and ATP 2021, Qld) gas fields, with Vintage Energy as 50% operator and Bridgeport holding 25%.
  • An independent reserves and resources assessment by Chris Dykes Reserves International Limited (CDRI) as at 30 June 2026 reported 6.2 PJe in 2P reserves and 31.45 PJe in 2C contingent resources, totalling 37.65 PJe net to Metgasco.

Entitlement Offer Structure and Terms

The entitlement offer is structured on a 5-for-1 basis at an issue price of 1.1 cents per share. Each new share carries one free attaching option exercisable at 1.7 cents for a period of three years. The company disclosed that a prospectus for the entitlement offer was lodged with ASIC and ASX on 10 November 2026. If all attaching options are exercised, the company stated this would generate approximately $3.1 million in additional funds. The offer is presented by Non-Executive Chairman Michael Glennon.

Lender Conversion and Board Changes

As part of the recapitalisation, Glennon Small Companies (ASX:GC1), noted in the filing as chaired by Metgasco's chairman, is converting up to $1.0 million of debt into shares at the offer price. The filing also disclosed that directors and the Managing Director significantly reduced their remuneration from January 2026 and that the chairman takes no fees. The company further stated that a new chair and a new technical director have joined the board, and that an independent CDRI assessment of Metgasco's net reserves and resources has been completed.

Cooper Basin Assets and Reserves Position

Metgasco's producing assets comprise the Vali and Odin gas fields in the Cooper Basin, both tied into Moomba via the Vali–Beckler pipeline. The company holds a 25% interest in each field. The CDRI independent assessment as at 30 June 2026, released to the ASX on 26 October 2026, reported net 2P reserves of 6.2 PJe and 2C contingent resources of 31.45 PJe, for a combined total of 37.65 PJe. The filing stated the Vali processing plant was built for 20 MMscf/d capacity. The South Australian Government has committed grants covering up to 50% of the drilling costs of the Odin-3 and Vali-4 wells.