Metgasco seeks settlement over licence suspension

Metgasco confirmed media reports today that it had entered confidential discussions with the government over an out of court settlement for the suspension in May of its licence for exploration drilling at Bentley, near Lismore on the NSW North Coast.

The Daily Telegraph today reported that government sources said the settlement could cost $15 million.

A Metgasco spokeswoman said the company would seek to avoid court proceedings if possible, which may take as long as December to get underway.

However, it is not backing down on its claim the Office of Coal Seam Gas’ suspension of its licence was not warranted.

“Metgasco continues to argue that the government’s suspension was unlawful and unjustified and has severely damaged its business interests,” the company said in a statement to the Australian Securities Exchange.

On June 3, Metgasco launched a judicial review – which would be processed by the Administrative Appeals Tribunal - seeking a review of the suspension of its licence to drill.

It claims the suspension of its drilling licence was unjustified.

At the time Resources and Energy Minister Anthony Roberts said the licence was shelved due to concerns Metgasco had not adequately consulted with the community.

Metgasco share price fell after the suspension, falling from just under $0.090 in May to a price this morning of $0.05, which has since risen to $0.075.

An earlier version of this article quoted an incorrect share price