Metgasco’s $750K Raise Hinges on Success of Production Uplift Program
Metgasco Ltd has successfully raised approximately $750,000 through a partially underwritten entitlement offer to fund a production uplift program targeting its Odin and Vali gas fields in the Cooper Eromanga Basin.
- Raised $750,000 via partially underwritten entitlement offer
- Issued new shares at $0.002 each to eligible shareholders
- Funds to support Production Uplift Program starting mid-July
- Focus on increasing output from Odin and Vali gas fields
- New shares to commence trading on 16 June 2025
Capital Raise Completed
Metgasco Ltd (ASX – MEL) has announced the successful completion of its partially underwritten non-renounceable entitlement offer, raising approximately $750,000. Eligible shareholders subscribed for around 249 million new shares at a price of $0.002 each, with the remaining shortfall shares placed by the underwriter, PAC Partners Securities Pty Ltd. The new shares are expected to be issued on 13 June 2025 and will begin trading on the ASX from 16 June.
Funding Production Growth
The capital raised is earmarked to fund Metgasco's Production Uplift Program, set to commence in mid-July. This program aims to address operational challenges and unlock higher production potential across the company's key assets; the Odin and Vali gas fields located in the Cooper Eromanga Basin. Both fields straddle the South Australia-Queensland border and currently generate revenue through long-term gas contracts with blue-chip customers.
Strategic Outlook
Managing Director Ken Aitken expressed gratitude to shareholders and underwriters for their support, highlighting the importance of this raise in advancing Metgasco’s transition from exploration to production. The Production Uplift Program is expected to significantly increase gas output, which could enhance revenue streams and support the staged development of 2P reserves estimated at 36.55 petajoules equivalent. The company also continues to explore opportunities for acquiring additional assets and expanding its business in line with strategic objectives.
Market Implications
Metgasco’s move to strengthen its production capacity comes at a time when the East Coast gas market remains undersupplied, potentially positioning the company to capitalize on favorable market dynamics. However, the precise impact of the Production Uplift Program will become clearer following its implementation and subsequent operational results.
Bottom Line?
Metgasco’s capital raise sets the stage for a critical production boost, with market watchers keenly awaiting the program’s outcomes.
Questions in the middle?
- How quickly will the Production Uplift Program translate into increased gas volumes?
- What are the risks if the uplift program underperforms relative to expectations?
- Could Metgasco pursue further acquisitions to accelerate growth beyond the Cooper Basin?
