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Metgasco (ASX:MEL) enters trading halt ahead of upcoming capital raise

The Market Online Deal Room
ASX:MEL      MCAP $7.287M
16 July 2020 12:30 (AEDT)
Metgasco (ASX:MEL) - Managing Director, Ken Aitken

Metgasco (MEL) has entered a trading halt ahead of an upcoming capital raise.

Company shares will be paused until Monday, July 20 or when the company releases information about the raise to the market. It is unsure how much Metgasco is raising and what for.

Today, the company and its joint venture partners, Vintage Energy (VEN) and Bridgeport, announced that the first fracture stimulation stage for the Vali-1 ST1 well has been completed. MEL says the first stage was conducted in the deepest formation of Tirrawarra sandstone.

Now, this section will be cleaned out before the second feature stimulation stage will begin.

The fracture stimulation program is a six-stage scheme, with the remaining five stages scheduled to take place in just the Patchawarra formation.

Cross-section of Vali-11 ST1 and planned feature stimulation stages Source: Vintage Energy

The companies only started the program earlier this month. The aim of the program is to measure the gas flow rates from the Patchawarra Formation and the Tirrawarra sandstone, as well as record the down-hole reservoir pressure and individual zonal gas flow contribution.

Metgasco shares last traded for 3.3 cents each on July 16.

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