Australia: Metgasco Updates on PEL 13

Metgasco advises that having completed an analysis of the unconventional gas resources in PEL 13, this data has now been provided to the Company’s independent reserve certifiers, MHA Petroleum (Denver).

Metgasco expects to recognise first gas reserves in PEL 13 in the current quarter.

Over the past 12 months, Metgasco has undertaken an initial exploratory work program in PEL 13 to develop a view on the potential scale of the unconventional gas resource in this tenement. This exploratory work has included: the drilling of Bowerbird E01, Bowerbird E02 and Wyan E01 wells; acquisition of additional seismic data; interpretation of new and historic seismic; and the development of an integrated geological model which has mapped the Walloon Coal Measures within this tenement area. The PEL 13 tenement is adjacent to the south and west to PEL 16 where Metgasco has already established a large 2P reserve position.

Internal analysis indicates the presence of a significant gas resource within the Walloon Coal Measures in PEL 13 where Metgasco has not booked any gas reserves to date. This completed analysis has now been provided to the Company’s reserve certifiers, MHA Petroleum (Denver), for an independent opinion on the unconventional gas reserves within PEL 13.

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Source: Metgasco, May 9, 2011;