Metgasco’s $5.9M Asset Sale Could Signal Major Strategic Shift
Metgasco Ltd has entered a conditional agreement to sell its 25% stake in two gas fields in the Cooper Eromanga Basin to Vintage Energy for $5.9 million, marking a significant shift in its asset portfolio.
- Sale of 25% non-operated interest in Odin and Vali gas fields
- Conditional $5.9 million consideration payable by Vintage Energy
- Vintage assumes $3.39 million AGL gas prepayment liability
- Transaction subject to funding, approvals, and third-party consents
- Metgasco to repay debt and seek new assets post-sale
Strategic Asset Sale in the Cooper Basin
Metgasco Ltd (ASX – MEL) has announced a conditional heads of agreement to sell its 25% non-operated interest in two producing gas fields within the Southern Flank of the Cooper Eromanga Basin. The assets involved include the Odin Gas Field, straddling the South Australia–Queensland border, and the Vali Gas Field located in Queensland. The buyer, Vintage Energy Ltd, will pay $5.9 million subject to customary adjustments upon completion.
Complex Conditions and Liabilities
The transaction is contingent on several pre-conditions, including Vintage securing sufficient funding by late December 2025 and completing the purchase of a 25% interest from Bridgeport (Cooper Basin) Pty Ltd by February 2026. Vintage will also assume liabilities tied to the assets, notably a $3.39 million remaining gas prepayment obligation to AGL under the Vali Gas Field Gas Supply Agreement. However, certain private royalty obligations linked to Metgasco’s director-associated entity will remain with Metgasco.
Shareholder and Regulatory Approvals Ahead
Given the sale represents a disposal of Metgasco’s main undertaking, shareholder approval under ASX Listing Rule 11.2 is required. An extraordinary general meeting is scheduled for 29 December 2025 to seek this approval. The deal also depends on ministerial and third-party consents, including from AGL. The Metgasco board has expressed support for the transaction, citing insufficient cash flow from recent production uplift efforts and the strategic need to reduce debt.
Post-Transaction Outlook
Following completion, Metgasco will no longer hold substantial assets or operations and plans to identify new business opportunities within six months to maintain its ASX listing. The proceeds from the sale will be used primarily to repay existing debt to Glennon Small Companies Ltd. The company faces a critical period as it transitions from its current asset base to new ventures, with market watchers keen to see how it navigates this transformation.
Bottom Line?
Metgasco’s asset sale marks a pivotal restructuring phase, with future growth hinging on successful new acquisitions.
Questions in the middle?
- Will Vintage Energy secure the necessary funding and approvals to complete the deal?
- What new assets or business opportunities will Metgasco pursue post-sale?
- How will the assumption of liabilities by Vintage impact operational performance in the Cooper Basin?
