Key Highlights

  • Metgasco (ASX:MEL) closed at $0.014 on 12 November 2026, down 22.22% on the session.
  • The company announced a partially underwritten entitlement offer on 10 November 2026 to raise up to about $2.02 million before costs.
  • The offer is priced at 1.1 cents per new share, with one free attaching option for every new share issued.

Metgasco Ltd (ASX:MEL) shares closed at $0.014 on 12 November 2026, a fall of 22.22% over the session, while the S&P/ASX 200 closed at 9,146.80, down about 6.40 points or roughly 0.07%. Metgasco is a gas and energy company with interests in the Odin gas field and oil exploration at Thaldra. Its most recent update, dated 10 November 2026, announced a Capital raising in the form of a partially underwritten entitlement offer, and the share price move on 12 November is not tied to that earlier announcement.

Terms of the Entitlement Offer

On 10 November 2026, Metgasco said it would offer eligible shareholders five new shares for every one held at an Offer Price of 1.1 cents, to raise up to about $2.02 million before costs. Each new share will carry one free attaching option with an exercise price of 1.7 cents and a three-year expiry. The Record Date is 7.00pm (AEST) on 13 November 2026.

PAC Partners has agreed to partially underwrite the offer for up to $1 million. Glennon Small Companies has agreed to sub-underwrite up to the same amount, with its subscription satisfied by a set-off against its existing debt, so that the company does not receive cash for that portion.

Use of Funds

The company said the cash raised would be used mainly to advance well planning for the Odin-3 and Vali-4 wells, support pre-drilling work on the Thaldra oil prospect, and fund a permanent connection for the Odin gas field. Working Capital is also included in the stated uses.

Sector Context

Metgasco operates in the small-cap gas and oil segment of the ASX, where smaller producers and explorers regularly use renounceable entitlement offers and partial Underwriting to raise funds. Energy prices and the timing of project connections often influence how these companies are valued. On 12 November the broader market was little changed, so the fall in the share price reflected trading in Metgasco shares specifically.

Risks and Limitations

The entitlement offer is only partially underwritten, so the amount raised may be below the maximum figure. The company relies on Debt set-offs as part of its funding, which reduces its cash receipts from the raise. At 1.4 cents, the closing share price sits above the 1.1 cent offer price, and any later move back toward the offer level could affect how many shareholders take up their entitlements.

What to Watch Ahead

Investors will be looking at the outcome of the entitlement offer after the record date of 13 November 2026, including how much is taken up and how much is placed through the underwriters. Progress on the Odin-3 and Vali-4 well planning, the Thaldra oil pre-drilling work and the Odin permanent connection will also be monitored.

Final Word

Metgasco's share price fell sharply on 12 November, and its entitlement offer will determine how much of the planned funding reaches the company. The next steps on well planning and gas connection will show how the funds are being used.