Metgasco Ltd (ASX:MEL) has announced a partially underwritten renounceable pro-rata entitlement offer to eligible shareholders, seeking to raise up to approximately $2.02 million before costs, with proceeds directed toward well planning for the Odin and Vali projects and the Odin permanent connection project.

Key Points

  • Entitlement offer of 5 new shares for every 1 existing share held, priced at 1.1 cents per new share, with a record date of 7:00pm AEST on 13 November 2026
  • Every new share issued will be accompanied by one free attaching option with an exercise price of 1.7 cents, expiring three years from the date of issue
  • The offer is partially underwritten by PAC Partners for up to $1 million, representing approximately 50% of the new shares
  • Glennon Small Companies Ltd (GSC) has agreed to sub-underwrite up to the underwritten amount, with subscription to be satisfied by a GSC Debt Set-off rather than cash proceeds to the company
  • The offer opens on 17 November 2026 and closes at 5:00pm AEST on 1 December 2026, unless extended

Entitlement Offer Terms and Capital Structure

Metgasco is offering up to 183,711,380 new fully paid ordinary shares, subject to rounding, at $0.011 per share to raise up to approximately $2,020,825 before costs. The offer is renounceable, allowing eligible shareholders to sell or transfer their entitlements on the ASX, with entitlement trading commencing on a deferred settlement basis on 17 November 2026 and ceasing at the close of trading on 24 November 2026. Upon completion of the offer, the maximum number of shares on issue would be 220,453,656, with up to 183,851,380 options on issue. Shareholders who subscribe for their full entitlement may also apply for additional shares under a Top Up Offer at the same price.

Underwriting and Sub-Underwriting Arrangements

PAC Partners Securities Pty Ltd has been appointed lead manager and underwriter to the offer, covering any shortfall up to a maximum of $1 million. GSC, described in the filing as an existing substantial shareholder and an associated entity of company director Michael Glennon, has entered into a sub-underwriting arrangement with PAC Partners for up to the underwritten amount. GSC's subscription will be satisfied by a GSC Debt Set-off, reducing Metgasco's GSC Debt dollar-for-dollar rather than providing cash proceeds. The filing states that Michael Glennon currently holds an interest representing approximately 20% of shares on issue, with his relevant interest potentially ranging from 3.33% to a maximum of 76.97% depending on subscription outcomes.

Indicative Use of Funds and Offer Timetable

Assuming full subscription, Metgasco has disclosed an indicative allocation of proceeds comprising $0.3 million for the Odin Permanent Connection Project, $1.481 million for working capital and pre-planning on Odin-3, Vali-4, and an oil well, and $0.239 million for costs of the entitlement offer, totalling $2.02 million in gross subscription value. Net cash proceeds after costs are stated at $1.781 million. Results of the offer are expected to be announced on 4 December 2026, with allotment of new shares prior to 12:00pm AEST on the same date and expected normal trading of new shares commencing on 7 December 2026. A prospectus was lodged on 10 November 2026.