Metgasco to sue NSW gov't for damages

Metgasco's PEL 426 license

Metgasco's PEL 426 license

Embattled oil and gas exploration firm Metgasco will take the NSW to court for damages after failing reach a settlement over the future of the company’s three Northern Rivers licence areas.

Negotiations have been underway to settle Metgasco’s claim for damages in relation to the 2014 suspension of its petroleum exploration licence at the Rosella site in northern NSW.

As a result, Metgasco has initiated court action for damages from the NSW Government, with plans to conclude contractual agreements for a seismic acquisition program to the east of Lismore and for the drilling of the Rosella conventional tight gas prospect.

According to a statement, the company aims to initiate court action for damages from the NSW Government in relation to the suspension of the company’s 2014 drilling program, request a judicial review to have its PEL 426 license renewed and received a production license for its PPLA 9 tenement and conclude contractual agreements for a seismic acquisition program to the west of Lismore and for the drilling of the Rosella conventional/tight gas prospect.

“Details of the seismic and drilling programs will be issued over the next few months as contract details, including drilling rig choice and availability, are concluded,” Metgasco Managing Director Peter Henderson said.

“We expect the Government will provide all 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 Government.”

Mr Henderson added that Metgasco would have preferred to settle its claim for damages with the Government out of court, and is happy to resume discussions, but not at the expense of having to indefinitely suspend its business activities.

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