New South Wales Supreme Court Overturns Government's Decision to Suspend Metgasco's CSG Drilling Licence

Australian coal seam gas explorer Metgasco Limited on Friday announced that the New South Wales Supreme Court has ruled in its favour in challenge to the NSW Government’s suspension of its Rosella drilling approval.

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.

Commenting on the Supreme Court ruling Managing Director Peter Henderson said this was a landmark decision for the resources industry in New South Wales and could have implications for broader industry in the state.

“Had we lost, future investors in NSW would have had to consider the real threat of sovereign risk and NSW’s image would have been tarnished,” Henderson said.

He said that the company was very keen to develop a gas business in NSW and hopes to be able to work co-operatively with the Government to achieve this outcome.

“Before recommencing drilling activities in the Northern Rivers region, we would appreciate the opportunity to talk to Government”, Henderson said.