Metgasco is raising $2.7 million in a share placement as it nears the finish line for its Vali gas development and looks to bring Odin online quickly.

Funds from the placement will be used to complete the Vali project in South-West Queensland to deliver initial commercial production in December.

Metgasco said they would also help secure long lead items and fund engineering work on the tie-in of its uncontracted Odin gas resource.

The Vali gas field, in the Cooper/Eromanga Basin, is to be connected to the nearby Moomba gas gathering network for supply to the eastern Australian domestic gas market.

The project is held in joint venture by Metgasco (25 per cent), Vintage (50 per cent) and Bridgeport (25 per cent).

Metgasco said its $2.7 million capital raise would fund the company through to first commercial gas revenue from Vali, after frustrating delays and engineering cost increases outside of its control.

Despite these issues, Metgasco said Vali remained an asset with compelling economics and long field life.

“It is pleasing to see strong support from current shareholders and new investors in this successful placement,” Metgasco managing director Ken Aitken said.

“The company is focussed on delivering first gas at Vali, rapidly delivering the uncontracted gas in Odin to the East Coast market to build business value. Thanks to the Blue Ocean Equities team for their work on this successful
placement.’’