Metgasco Ltd. announced completion of the second of four operational phases to bring the Vali gas field into production. The well completion campaign announced 11 July has concluded with the four wells; Vali- 1ST, Vali-2, Vali-3 and Odin-1 set up for gas production. There is no change to the previously announced expectations for delivery of first gas in October 2022.

Metgasco and the ATP2021 JV partners are bringing the recently discovered Vali gas field into production to provide a new source of gas for eastern Australia. Vali is to supply an estimated 9 PJ to 16 PJ of gas to AGL in the period from field start-up to end-2026 under the Gas Sales Agreement ("GSA") announced 23 March 2022. Gas committed under the GSA, the first supply agreement for the company, is estimated to represent 9% to 16% of the field's proved and probable reserves of 101 PJ (gross joint 1 venture volume).

Gas produced from the field is to be transported to Moomba for processing prior to sale. The JV agreed to commence engineering for connection of the Odin gas field to the Vali-Beckler pipeline, as well as preparation of a commercial plan for marketing of the field's gas, as announced on 19 July 2022. The marketing of uncontracted Odin gas into the undersupplied East coast market offers a compelling value opportunity.

Operations to enable production from Vali comprise four phases: a fracture stimulation campaign; well completion; pipeline and facilities construction and commissioning. The well completion campaign work commenced immediately after the fracture stimulation campaign. All three Vali wells, and Odin-1 are now completed as gas producers.

The completed wells were flowed for short periods following completion operations for clean-up. It is not planned to flow test the wells until the field is connected to infrastructure and the gas produced processed for sale, the rig has been released. Pipeline and Facilities Construction phase: The construction phase comprises installation of gas gathering, separation, metering and cooling infrastructure at Vali and the installation of dual 13 km pipes to connect the Vali field to the Moomba gas gathering system at Beckler Field in South Australia.

All regulatory approvals are on track, procurement is well advanced and fabrication of production skids underway. The production skids are being prefabricated to reduce construction work required on-site. All equipment received from suppliers is currently being staged in Adelaide for transport to the field at the appropriate time.

Installation of the pipeline, and construction of the metering and tie-in facilities is currently being scheduled in an optimised fashion to maximise efficiency of crew rosters and camp utilisation. Commissioning and first gas: As advised previously, commissioning of the three Vali wells is to be conducted progressively, phased around the receipt of major equipment, a process expected to continue into November. Commissioning of the first well, facilities and pipeline is scheduled for completion in October with first gas production to occur during this period.

The remaining wells will follow in the commissioning process as lease facilities are completed and handed over. Gas produced in the commissioning phase will be used initially for commissioning of facilities and pipeline and line-pack prior to supply to AGL under the GSA.