Metgasco Accepts A$25 mn Buyback Offer for Three New South Wales CSG Licences
Metgasco has agreed to sell its three Northern Rivers petroleum exploration licences (PEL) to New South Wales (NSW) government for A$25 million.
According to a statement by NSW government published Wednesday, shareholders of Metgasco voted in favour of the proposal.
Metgasco’s board endorsed the agreement early last month following negotiations with the Department of Industry and assistance from NSW Treasury.
The three licences are Petroleum Exploration Licence (PEL) 13, Petroleum Exploration Licence (PEL) 16 and Petroleum Exploration Licence (PEL) 426. The government will also acquire Petroleum Production Licence Application (PPLA) 9 and resolve all disputed matters.
The three PELs acquired under the agreement are the last remaining in the Northern Rivers.
Minister for Industry, Resources and Energy, Anthony Roberts, said under the NSW Gas Plan, the NSW Government is committed to pause, reset and recommence the gas industry on its terms. “Our new Strategic Release Framework will ensure areas are only released for exploration in the future following an assessment of economic, environmental and social factors with community consultation conducted upfront.”
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. The suspension was later overturned by New South Wales Supreme Court.
Company Chairman Len Gill called it a disappointing day for oil and gas exploration in Northern Rivers.
"The Board and all shareholders have the right to be very disappointed and upset at the changes in attitude towards development of the state’s gas resources, particularly in the Northern Rivers, across the political spectrum, and particularly by government. We have experienced several years of lawful but unfavorable and unnecessary regulatory changes as well as having our approval to drill the Rosella well unlawfully suspended. These have impacted on the value of the company and shareholders investments," he said Wednesday in his address to shareholders.