Quarterly Activities and Appendix 5B March 2025
| Stock | Metgasco Ltd (MEL.ASX) |
|---|---|
| Release Time | 30 Apr 2025, 2:07 p.m. |
| Price Sensitive | Yes |
Metgasco reports quarterly profit on improved gas production
- Odin and Vali gas fields delivered improved production during the quarter
- Quarterly profit of $74,000 driven by surface pressure debottlenecking and cost control
- Joint venture approved a production uplift program to further increase gas output
Metgasco Limited (ASX:MEL) has reported its quarterly activities for the three months ended 31 March 2025 (Q3 FY25), delivering a quarterly profit of $74,000. This improved financial performance was attributable to successful surface pressure debottlenecking work, which moderated the natural gas production decline of the Vali-1 and Odin-1 wells, as well as the company's focus on controlling joint venture and in-house costs. The quarter also saw the operator successfully resolve a gas metering issue that was previously under-reading gas production levels. The joint venture has now approved a production uplift program, comprising a low-cost well intervention program targeting increased gas production in all Odin and Vali wells. This program is expected to benefit production, sales and cash generation, providing a boost to business profit margins. While recent flooding in the Cooper Basin has delayed the implementation of this uplift program, Metgasco looks forward to pursuing the production optimization opportunities identified and other value-creating initiatives being reviewed by the joint venture. The renewal of the ATP2021 licence for six years is also positive news, allowing the joint venture to progress the excellent oil and gas opportunities available in the permit.
The joint venture has approved a production uplift program on all Vali and Odin wells, which is expected to benefit production, sales and cash generation, and provide a boost to business profit margins. The program is anticipated to be implemented in the June 2025 quarter, subject to the resolution of the recent flooding in the Cooper Basin.
Metgasco remains focused on pursuing production optimization opportunities and other value-creating initiatives at the Odin and Vali gas fields, with the aim of increasing gas output and associated revenue. The renewal of the ATP2021 licence for six years also provides the company with ample time to fully evaluate the numerous oil and gas prospects within the permit.