3 July 2018
Metgasco Corporate Strategy Update
In June 2016, Metgasco Ltd (ASX:MEL) (Metgasco or the Company) released a corporate update and strategic review (see Metgasco’s ASX announcement dated 1 June, 2016 Corporate Update and Strategic Review, Management and Board Changes). In that announcement, the Board articulated the Company’s objectives for new business transactions, being:
• the generation of reliable income streams from either direct or indirect exposure to operating production cash-flows;
• strong risk-adjusted investment return expectations;
• accepting project or exploration risk only in the context of a balanced portfolio of other income producing assets and
• an aggregate exposure profile capable of delivering strong total shareholder returns including both capital growth and distributions.
Given the Company has undertaken a number of steps in growing the business over the intervening two years, including: (a) undertaking its very successful investment with Byron Energy Limited (ASX:BYE) (Byron); (b) farming into Byron’s prospective Bivouac Peak asset; (c) returning approximately $10.0m capital to shareholders; (d) progressing its exploration assets in the Cooper Basin; and (e) continuing to evaluate new acquisition and project opportunities, the Board felt it was appropriate to review the Company’s strategy and update shareholders on Metgasco’s vision and direction.
The outcomes of this review, in the form of the Company’s updated Corporate Vision and Strategy Statement, and Strategy Statement: Questions and Answers documents, are attached.
The documents are designed to inform shareholders on the objectives that underlie the Board’s decisions and the Company’s activities going forward.
Alexander Lang, Executive Chairman
Phone: +61 02 9923 9100