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Metgasco seeks legal advice over drilling suspension

Metgasco seeks legal advice over drilling suspension

Photo by Bloomberg

20th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Metgasco is seeking legal advice after the Office of Coal Seam Gas (OCSG), in New South Wales, failed to complete an evaluation on the company’s Rosella exploration well.

The New South Wales government last week suspended Metgasco’s right to drill at the well, claiming that the company had not fulfilled its exploration licence conditions, specifically with regards to its consultation with the surrounding community.

Metgasco said on Tuesday that it had provided OCSG with submissions demonstrating that it had fully complied with its licence conditions, with the OCSG undertaking to advise the company on May 19 whether it was prepared to lift the drill suspension.

However, the OCSG has now advised Metgasco that it had not yet completed its evaluation, and was unable to confirm the date by which it would do so.

Metgasco told shareholders that the company remained committed to its exploration in the Clarence Moreton basin, and was seeking legal advice in relation to the suspension of operations.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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