Metgasco : Byron Subscription Notice Received

The Board of Metgasco Limited (Metgasco or the Company) is pleased to advise that in accordance with the terms of the Convertible Note Deed (Deed) between Byron Energy Limited (ASX:BYE) (Byron) and Metgasco dated 22 July 2016, Metgasco has subscribed to and Byron has issued to Metgasco an A$8.0m Convertible Note (Note) on 20 January 2017. The Convertible Note will be repayable over the reminder of the term of the agreement to 21 July 2019.

The relevant details of the Subscription Notice are:

1. the subscription date is 20 January 2017;
2. the face value of each Note is A$1; and

1. the number of issued Notes is 8,000,000.

The Note is secured by a General Deed of Security and Priority (over Byron's assets), a Negative Pledge from Byron and a registered interest over Byron's share of SM 70/71 leases. For further details of the terms of the Deed please refer to Metgasco's ASX release dated 22 July 2016. For an update on the development of the SM 71 project please refer to Byron's announcement dated 23 January 2017.

Commenting on the receipt of the Note, Metgasco's Executive Chairman, Alexander Lang said: 'On behalf of the Board, we are very pleased that Byron has elected to fully draw down on the A$8.0m Funding Facility to be primarily used for the development of production assets at SM 71 and associated purposes. The drawdown has further strengthened our relationship with Byron and we look forward to working closely with Byron with respect to the Bivouac Peak project and the opportunity to farm into future Byron projects.'

ENDS.