NORTHERN NSW-based gas company Metgasco says it is not in breach of regulations and "is confident it is in compliance", following the shock suspension of the company’s licence to drill by NSW Resources and Energy Minister Anthony Roberts this morning.
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The company's plans for future exploration in the region remain unclear, with shares currently in a 48-hour trading halt on the Australian Stock Exchange (ASX).
Metgasco’s licence to drill a test well at the Rosella drill site at Bentley was suspended today due to concerns the company had not adequately consulted with the community, Mr Roberts said.
Metgasco notified the ASX this morning of the drilling halt, adding that it has complied with the conditions of its Petroleum Exploration Licence (PEL).
“Metgasco is confident it is in compliance with the PEL 16 licence and is seeking to demonstrate this to government.
“The Company is in the process of mobilising a drilling rig to drill the Rosella well and therefore this advice from the NSW government comes at a very critical time.
“Accordingly, the company has sought and obtained a 48-hour ASX trading halt pending the opportunity to meet and discuss the matter with the government so that there is a clearer understanding of the outlook for rig mobilisation.”
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Mike Foley
Senior journalist for The Land.
Senior journalist for The Land.
