Metgasco Ltd · ASX:MEL

Metgasco — Mining 2008 Resources Convention

16 slides from Metgasco's conference presentation, Oct 31, 2008

1. Slide 1: Presentation to Mining 2008 Resources Convention

   For personal use only Presentation to Mining 2008 Resources Convention Glenda McLoughlin – Director and Chief Financial Officer 31 October 2008

2. Slide 2: Overview of Metgasco

   Overview of Metgasco For personal use only ƒ Metgasco is one of the last independent coal seam gas company’s with substantial reserves and reserve development upside. ƒ Coal seam and conventional gas ƒ Close to markets and infrastructure ƒ Relationships with key customers - CS Energy - BP ƒ Developm

3. Slide 3: Snapshot of Financials & Reserves

   Snapshot of Financials & Reserves For personal use only Listed Dec 2004 Large coal seam gas reserve position Current Share Price $0.34 2P reserves 298 PJ Market Cap $45 million Shares on issue 132 million 3P reserves 1,534 PJ Options on issue 21 million Acreage 1.5 million acres Page 3

4. Slide 4: The value of Australian coal seam gas reserves has been increasing

   The value of Australian coal seam gas reserves has been increasing For personal use only Valuation of 2P reserves in recent corporate transactions - EV/2P Reserves ($/GJ) Takeover Minority Interest Acquisition $4.91 $4.02 $2.72 $2.37 $1.71 $1.67 $0.76 $0.60 $0.48 $0.45 $0.37 6) 8) 8) 8) 6) 8) 5) 7)

5. Slide 5: Demand for gas is growing rapidly and gas prices are increasing

   Demand for gas is growing rapidly and gas prices are increasing For personal use only Historical Prices Present Pricing Future Prices (Export) 7 7 7 6 6 6 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 0 0 Early CSM East Coast Gas Prices Present Prices 0 Present Prices ƒ Historically east coast gas prices ƒ QLD gas

6. Slide 6: Best value in the CSG sector on 2P reserves

   Best value in the CSG sector on 2P reserves For personal use only Market Cap/2P 2P Reserve Position 2 1.87 2,500 1.8 2,162 1.59 1.6 1.57 2,000 1.4 1.33 1.2 1.05 1,500 1 1,001 0.8 1,000 0.6 0.36 469 0.4 500 264 253 0.14 0.2 120 41 0 0 SGL ESG SHG AOE QGC MPO MEL QGC AOE SHG MEL MPO ESG SGL ƒ MEL is v

7. Slide 7: What about on 3P reserves?

   What about on 3P reserves ? For personal use only Market Cap/3P 3P Reserve Position 1.6 6,000 5,682 1.42 1.4 5,000 1.2 4,000 1 0.8 3,000 0.67 0.61 2,189 0.6 0.4 2,000 1,419 0.4 1,097 0.23 0.15 845 1,000 596 0.2 0.03 54 0 0 SGL SHG AOE QGC ESG MPO MEL QGC AOE MEL SHG ESG MPO SGL ƒ Recent QGC/BG acqui

8. Slide 8: Reserve development milestones

   Reserve development milestones For personal use only Gas-in-Place Possible Probable Proven (Contingent Reserves “3P” Reserves “2P” Reserves “1P” resource) 4,800 PJ 1,538 PJ 298 PJ tba ƒ Converting resources to reserves is the critical first step This means moving a prospective resource estimate into

9. Slide 9: Progress on our CSG pilot

   Progress on our CSG pilot For personal use only ƒ Metgasco is currently running a 5 well horizontal well pilot. ƒ Each coal seam gas project needs to identify the optimal production technique for its reservoir (eg Horizontal wells, Vertical underream, Frac etc) ƒ Lead well in the pilot – Corella-11

10. Slide 10: First conventional gas discovery

    First conventional gas discovery For personal use only ƒ Kingfisher Field ¾ Gas-in-place 82 - 831 bcf ¾ Seismic indicates seal & trap ¾ Riflebird-E14 drilled and flowed gas at 247scf/day ¾ Productivity enhancement achievable Mackellar Prospect ¾ 700 metres of additional potential pay deeper in seque

11. Slide 11: Other leads and prospects in PEL 16

    Other leads and prospects in PEL 16 For personal use only PMean P10 ƒ Processing and Bcf Bcf interpretation of recently Kingfisher 82 831 shot seismic has identified a Mackellar 63 688 number of attractive leads Mackellar North 146 1,793 and prospects in PEL 16 Bowerbird 28 295 ƒ Mackellar North a v

12. Slide 12: Commercialisation Strategy

    Commercialisation Strategy For personal use only Project Comments ƒ 30 MW gas fired power station ƒ 2.5 PJ per year Richmond ƒ $45 million construction cost ƒ $12 million field development cost Valley Power ƒ EA completed, DA expected in December Station ƒ First sales end 2009/ early 2010 ƒ Forecast

13. Slide 13: Delivering gas to SE-Queensland

    Delivering gas to SE-Queensland For personal use only ƒ Casino to Ipswich gas pipeline - 145 km high pressure gas pipeline. ƒ Brisbane is the only capital city on the east coast of Australia supplied with gas by a single gas pipeline. ƒ The CIP enhances security 3P of gas supply to Brisbane by Reser

14. Slide 14: Domestic gas market opportunities

    Domestic gas market opportunities For personal use only ƒ East coast gas demand is approximately 800 PJ per annum (2008) ƒ Demand is forecast to grow to 1,200 PJ per annum by 2030 (Owen Report) ƒ Growth largely driven by demand for “clean” gas from the power generation sector. Page 14

15. Slide 15: In Summary…

    In Summary… For personal use only 9 Gas is becoming increasingly important in the Australian energy mix. 9 Metgasco is continuing to develop and commercialise a large gas reserve position. 9 Metgasco has a key competitive advantage because it is close to markets and infrastructure. 9 Metgasco has es

16. Slide 16: Disclaimer

    Disclaimer For personal use only This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas business. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables an

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