Coal seam gas explorer Metgasco has hinted that it will seek compensation from the NSW government after the Supreme Court overturned the state’s suspension of its drilling licence in the politically sensitive Northern Rivers region.
On May 2014, NSW Resources Ministry had cancelled Metgasco's licence to drill for gas at its Rosella site near Lismore after protests by the local communities. The suspension resulted in a 40% slump in Metgasco's shares.
“We believe that our decision to pursue legal action has been vindicated. We will be seeking compensation for the damage that has been inflicted on Metgasco and its 5,000 shareholders by the NSW Government’s unlawful decision,” Metgasco Managing Director Peter Henderson said in statement.
He added 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.
