New South Wales Suspends Metgasco's CSG Drilling Approval

New South Wales’ Office of Coal Seam Gas has asked Metgasco to suspend all work on the Rosella E-01 exploration well until the company can demonstrate it has complied with condition 8 of the PEL 16 exploration licence regarding community consultation.

Metgasco is focussed on exploring the Clarence Moreton basin in northern New South Wales. The company has a 100% interest in all of its tenements which include PEL 16, PEL 13 and PEL 426. These tenements cover an area of approximately 4,556 km2.

The company in a statement said it is confident that it is in compliance with the PEL 16 licence conditions and is seeking to demonstrate this to government.

“The company is in the process of mobilising a drilling rig to drill the Rosella well and therefore this advice from the NSW government comes at a very critical time. Accordingly, the company has sought and obtained a 48 hour ASX trading halt pending the opportunity to meet and discuss the matter with government so that there is a clearer understanding of the outlook for rig mobilization,” the company said on Thursday.