Metgasco Limited (ASX:MEL) Good Vali and Odin Gas production underpins quarterly profit
Metgasco Limited (ASX:MEL)
Odin & Vali:
• Odin Field average gross raw gas production during the March 2025 quarter was 2.73MMsfd
• Vali Field raw gas production was 0.81 MMscfd during the quarter
• Production declines from both fields were moderated by surface pressure debottlenecking and the rectification of metering issues
• The Joint Venture has approved a production uplift program on all Vali and Odin wells
Profit , Revenue and Sales:
• Quarterly profit of $74,000
• Sales revenue of $ 618,200
• Production of 0.055 PJe
Metgasco MD Ken Aitken commented:
“I am happy to report an improved financial performance by Metgasco during the March 2025 quarter, with the Company delivering a modest quarterly profit. This profit recovery was attributable to both surface pressure de-bottlenecking work, which successfully moderated the natural gas production decline of Vali-1 and Odin-1, and our focus on controlling joint venture and in-house costs. In another pleasing March 2025 quarter development, the operator successfully resolved the gas metering issue, which was previously under-reading gas production levels.
The quarter also saw the joint venture agreed to action a production uplift program, which comprised a low cost well intervention program targeting increased gas production in all Odin and Vali wells. The program is expected to benefit production, sales and cash generation, which should, in turn, provide a boost to business profit margins. While recent flooding in the Cooper Basin has delayed the implementation of this uplift program, we look forward to pursing the production optimisation opportunities identified and other value creating initiatives being reviewed by the joint venture.
The ATP2021 licence renewal for six years, announced to the market just after quarter’s end, is good news. It will allow the joint venture to progress the excellent oil and gas opportunities available in the permit”
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About us:
About Metgasco
Metgasco Limited (ASX:MEL) is a growing onshore Australia-focussed oil and gas exploration and production company with a 25% non-operated interest in licences located within the following two gas producing fields located in the Southern Flank of the Cooper Eromanga Basin:
• The Odin gas field, which straddles the South Australia-Queensland border
• The Vali gas field, which is located in Queensland, adjacent to the Queensland-South Australia border.
The Company has progressed appraisal drilling and production programs for these assets to point where Metgasco now generates sales revenue from gas and gas liquids produced from its Cooper Basin portfolio via long term gas contracts to blue chip gas customers. The joint venture owning these assets has approved a low cost well intervention program which is anticipated to significantly increase current gas production to existing gas customers and associated revenue. The potential revenue generated will enable the staged appraisal and development of 36.55PJe* of 2P reserves to an undersupplied East Coast Gas market. The licences have multiple additional oil and gas exploration targets, which if successful, can be developed rapidly via existing production infrastructure.
Metgasco has successfully transitioned from being a pure oil and gas explorer to a producer, it continues to examine ways to further grow its business. These possibilities include both opportunities to acquire additional value-accretive exploration- and production-stage oil and gas assets, and potential new areas of business consistent with the Company’s strategic objectives.
Contact details:
For more information, please contact:
Ken Aitken
Managing Director
T: + 61 8 9463 2463
E: ken.aitken @metgasco.com.au
Investor Relations
The Capital Network
Julia Maguire
T: +61 2 7257 7338
E: [email protected]