Metgasco to Soon Start Gas Drilling at Rosella Prospect in New South Wales

Metgasco Limited on Tuesday said it will soon begin drilling for gas at of the Rosella prospect in New South Wales.

The company also plans to initiate court action for damages from the NSW government in relation to the suspension of the Metgasco’s 2014 drilling program.

In May last year, the NSW government's Office of Coal Seam Gas suspended Metgasco's permit to test drill a tight sands gas well on a Bentley property. The government said that the decision was taken on the basis that Metgasco had not met its obligations to consult with the community.

In April, the suspension was overturned by New South Wales Supreme Court. NSW government decided not to appeal against the judgement. 

“Metgasco would have preferred to settle its claim for 2014 suspension damages with the New South Wales Government out of court and is happy to resume good-faith discussions with Government in this respect, but not at the expense of having to indefinitely suspend its business activities,” chief executive Peter Henderson said.

Henderson stated 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, adding that “we expect the Government will provide all necessary police protection to allow the lawful activities to be undertaken safely and securely.”