PERTH (miningweekly.com) – The share price of ASX-listed Metgasco surged by about 46% on Friday as the New South Wales Supreme Court found in favour of the company in its battle against the state government’s cancellation of its Rosella exploration well.
Metgasco turned to the Supreme Court last year after the New South Wales Office of Coal Seam Gas (OCSG) failed to amend a previous suspension of drilling activities at the Rosella exploration well.
The OCSG maintained the suspension, providing the company with written material in support of the renewed suspension, which had originally been based on claims that Metgasco had failed to adequately conduct community consultation.
However, the state government missed its August 8 deadline to lodge supporting evidence for its decision with the Supreme Court, and had subsequently said that it had decided not to do so.
The Supreme Court hearing was held in October last year, with the Court on Friday handing down its decision in favour of Metgasco.
The company told shareholders that it would review the Supreme Court decision in detail, before providing a response.
Metgasco has been exploring for gas in the Clarence Moreton basin for some ten years, and had to date invested some A$120-million in the area.
Metgasco shares were trading at a high of 9c a share on Friday, up from the previous closing price of 5.6c a share.