Metgasco Limited (ASX:MEL) — Has Moved 2P Gas Reserves Into Contingent Resources While Recapitalisation Talks

Aditi Sarkar

02 November 2026 08:58 PM AEDT

Metgasco Limited (ASX:MEL) — Has Moved 2P Gas Reserves Into Contingent Resources While Recapitalisation Talks

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Highlights

Metgasco Limited (ASX:MEL) is an Australian oil and gas explorer and producer with interests in the Cooper and Eromanga basins.
Metgasco's producing Assets are the Odin and Vali gas fields, held through a joint venture in South Australia.
Managing Director Ken Aitken says the company is in active talks on farm-in and asset Acquisition opportunities.
Odin averaged 1.07 MMscfd of online gross raw gas production and Vali averaged 0.36 MMscfd.

Metgasco Limited (ASX:MEL) is an Australian oil and gas explorer and producer with interests in the Cooper and Eromanga basins. Its September 2026 quarterly report, covered by on 30 October 2026, shows a small producer working on its wells, its reserves position and its Balance Sheet at the same time.

What the company does

Metgasco's producing assets are the Odin and Vali gas fields, held through a joint venture in South Australia. Output is small, which frames every figure below. Managing Director Ken Aitken says the company is in active talks on farm-in and asset acquisition opportunities.

Latest quarterly figures

sales Revenue for the September 2026 quarter was $260,750, down 11% on the prior quarter, while gas production fell 20% to 0.02 PJe. Odin averaged 1.07 MMscfd of online gross raw gas production and Vali averaged 0.36 MMscfd. The company cited flow and build-up cycling, maintenance at Odin, and wet weather that delayed work at the Vali-2 and Vali-3 wells.

The June 2026 quarter, reported on 31 July 2026, showed revenue of $292,450 and production of 0.025 PJe.

Reserves reclassification

After the quarter, an independent assessment was completed using reserves as at 30 June 2026. Gas-in-place volumes were unchanged, but Proved and Probable (2P) reserves were reclassified as 2C Contingent Resources because of the company's current Capital Expenditure plans. Net 2C Contingent Resources are now 31.45 PJe, while net 2P Reserves fell to 6.2 PJe from 36.45 PJe a year earlier.

The two categories differ. Reserves are commercially recoverable under defined conditions, whereas contingent resources depend on conditions, here the company's capital plans, being met. According to the company, the change reflects category rather than underlying volume.

At 30 September 2026, the company reported $169,000 of cash available for operations plus $1.25 million of restricted South Australian Government grant funds, a total of $1.419 million. Excluding restricted funds, it estimates 0.88 quarters of funding. Total debt, including capitalised interest, was $7.3 million.

Loans from Glennon Small Companies Ltd were extended on 2 July 2026 to 30 December 2026, with terms unchanged. In May 2026 the company also secured a $500,000 bridging Loan at 10% interest from the same lender and repaid a $255,000 interest-free loan to Vintage Energy after a Petroleum Title Sales Agreement was terminated.

The company says it is in discussions about Recapitalisation and exploring capital raising options. No terms have been announced, and there is no certainty any transaction will proceed.

Grant-backed wells

The joint venture signed agreements for $5 million in South Australian Government grants, announced on 15 June 2026. Metgasco's $1.25 million share is restricted cash for the Odin-3 and Vali-4 development wells. Management says it is working with partners to finalise the FY27 well schedule to lift production. Whether those wells restore output will be known only once they are drilled and tested.

Risks and milestones

Small Cooper Basin producers depend on well performance, weather and funding. Output fell for operational and weather reasons, the reserves category shifted because of capital constraints, and operating cash is modest relative to debt.

A notice of Annual General Meeting was lodged on 27 October 2026, and the Glennon loans fall due on 30 December 2026 unless extended or repaid.

Market snapshot

This is a delayed-quote, after-close snapshot of the 2 November 2026 session, not intraday data. Metgasco last traded at $0.013, unchanged, on Volume of 72,080 shares, with a Market Capitalisation of about $477,650. At 1.3 cents, a one-tick move of 0.1 cent is a large share of the price.

FAQs

Q: What happened to Metgasco Limited on 2 November 2026?

A: Metgasco Limited is an Australian oil and gas explorer and producer with interests in the Cooper and Eromanga basins. Its September 2026 quarterly report, covered by on 30 October 2026, shows a small producer working on its wells, its reserves position and its balance sheet at the same time.

Q: What developments were reported for Metgasco Limited?

A: sales revenue for the September 2026 quarter was $260,750, down 11% on the prior quarter, while gas production fell 20% to 0.02 PJe. Odin averaged 1.07 MMscfd of online gross raw gas production and Vali averaged 0.36 MMscfd. The company cited flow and build-up cycling, maintenance at Odin, and wet weather that delayed work at the Vali-2 and Vali-3 wells.

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