Metgasco funding announcement

Metgasco Ltd (ASX: $MEL) has successfully secured firm commitments from eligible sophisticated and institutional investors to raise approximately $1 million through the issue of approximately 200 million fully paid ordinary shares at an issue price of $0.005 per Placement Share. The funds raised, along with production revenue, will be utilized to progress appraisal development of the Odin gas field via the drilling of the Odin-2 well and for general working capital.

Executive commentary

The Placement and Share Purchase Plan will enable Metgasco to advance the development of the Odin gas field, demonstrating the ongoing support and confidence in the potential of the projects. The commitment from existing shareholders and high net worth investors reflects their belief in the company's strategic direction and the value of the Odin gas field. We are pleased with the response and look forward to the General Meeting in June 2024 for shareholder approval.

Summary of funding announcement

Metgasco (ASX: $MEL) has successfully secured approximately $1 million funding through a Placement and Share Purchase Plan. The funds will be used to progress the appraisal development of the Odin gas field via the drilling of the Odin-2 well and for general working capital. The Placement, supported by existing shareholders and high net worth investors, represents a 16.7% discount to the last ASX closing share price. Directors and Officers of Metgasco have collectively committed to subscribe for $85,000 in the Placement, subject to shareholder approval. The Share Purchase Plan will enable existing eligible shareholders to apply to participate in the capital raising at the same issue price as the placement. The company reserves the right to determine the aggregate amount it raises through the SPP, with the maximum amount sought to be raised under the SPP being $1,500,000. The SPP is on the same terms as the placement and eligible shareholders are encouraged to act promptly. The indicative timetable for the Placement and SPP will be subject to change, and further details will be contained in the equity raising presentation to be released to the ASX following this announcement.