UPDATED 3:30PM METGASCO is seeking damages from the state government for the suspension of its drilling licence at Bentley, near Lismore on the NSW North Coast.
In May 2014 NSW Resources Minister Anthony Roberts suspended Metgasco’s drilling operations, citing the company’s lack of public consultation as a breach of its licence conditions.
In April this year the Supreme Court overturned the state government’s suspension of Metgasco’s licence.
Metgasco could receive a substantial payout. In May the company said it had spent over $120 million over the previous 10 years developing its Northern NSW gas fields.
In an announcement to the Australian Securities Exchange (ASX) this morning, Metgasco chief executive Peter Henderson said drilling at Bentley would start again in “the coming months”.
“Details of the seismic and drilling programs will be issued in the next few months as contract details… are concluded," he said.
Mr Henderson called on the government to ensure police protect the company’s operations from protesters.
The Bentley site had been blockaded by up to 2000 people for several months in 2014. The government warned it would send bus loads of police to break the blockade before it ultimately halted drilling.
“We expect the government will provide all the necessary police protection to allow the lawful activities to be undertaken safely and securely and we were given assurances in this respect as part of our discussions with the government," Mr Henderson said.
Metgasco also announced on the ASX it would seek a judicial review to have a petroleum exploration licence around Grafton (PEL 426) reissued - which the government had declined not renew as well as a production licence near Casino (PPLA 9), which is currently under consideration.
Energy Minister Anthony Roberts said government is ready to negotiate with Metgasco.
“The Government... remains ready to continue negotiations in good faith with Metgasco.”
Mike Foley
Senior journalist for The Land.
Senior journalist for The Land.
