22 C
Byron Shire
March 7, 2021

Metgasco ‘reassures’ shareholders

Latest News

Police exchange gun fire at Dunoon – man arrested

At a media conference outside the Lismore police station this morning, Acting Superintendent Susan Johnston, Commander, Richmond Police Area Command, said that a man has been charged over an incident at Dunoon last night.

Other News

Interview with Janet Swain

Janet Swain is 14. She’s in love with the tragic and brilliant cellist Jacquleine DuPré. But one day her mother arrives home with a bassoon.

Byron Wildlife Hospital’s DA up for public comment

A development application for the mobile Byron Bay Wildlife Hospital is now before the public.

Forum to address housing emergency, March 8

A grassroots movement is bringing women, community and art together on International Women’s Day (March 8) in an urgent push to solve the local housing emergency. 

Rape, the law, and naming the man responsible

David Heilpern tackles key questions relating to the allegation of rape by a cabinet minister.

Helping Our Kids, help our kids

The Lismore Samson Fitness Challenge kicks off tonight in Lismore with the express aim of raising much-needed funds for the Our Kids charity.

Parking permits

Liz Levy, Suffolk Park Why has Byron Shire Council decided to impose a layer of digital tyranny for residents wishing to...

Coal seam gas protesters, whose voice carried to Macquarie Street, leading to new regulations that have stymied Metgasco.
Coal seam gas protesters, whose voice carried to Macquarie Street, leading to new regulations that have stymied Metgasco.

Metgasco will not be rushing to recommence its CSG activities in the northern rivers following the general election, it wrote in a letter to shareholders yesterday.

The company insists it is state government regulations banning CSG activity within two kilometres of residential areas that caused it to mothball operations early this year.

Metgasco insists it holds ‘the largest uncontracted gas reserves on the eastern coast of Australia’ and adds its Kingfisher tight gas discovery ‘could be significant to NSW in its own right’.

But the company blames the state government regulations, which it says have yet to be defined despite being introduced in February.

‘Other CSG companies in NSW followed our action soon after by suspending their activities, withdrawing from NSW altogether or significantly reducing their exploration and development programs. In fact, today there is little CSG activity in NSW and some doubt about whether even the downsized projects of larger companies will proceed in the current environment,’ the letter reads.

The company is referring to Dart Energy and Planet Gas, which has halted its projects. AGL had its projects in the Gloucester region, which have also been strongly opposed, approved by the federal government last year.

‘The Board is confident that it made the correct decision regarding suspension of activities in March. It is more than six months since the premier’s announcement and there are still no regulations regarding how the proposed exclusion zones will work, government departments are still sorting out new responsibilities, revisions to the Petroleum Onshore Act have yet to be passed through the NSW upper house and the business and investment community still lacks confidence in the NSW government’s commitment to the CSG industry and NSW’s energy security,’ the letter continues.

‘This is despite wide acceptance of an imminent shortage of gas supply in NSW and demands from many sections of the business community for action to stimulate the gas industry so as to ensure acceptably priced gas supplies are available.

‘Had Metgasco not suspended its activities we would have faced delays in approvals, which would have led to increased costs. We would have needed to raise additional funds, which would have been extraordinarily difficult if not practically impossible in the current market.’

The company also said it would be ‘difficult if not impossible’ to raise further cash on the stock market in the current environment.

It added that while its Clarence Morton Basin assets were effectively frozen, ‘there is no absolute need to invest elsewhere during 2013 and we will not propose opportunities for the sake of appearing to be active’.

The letter said the company would ‘work to establish a better NSW regulatory and business environment and pursue interests outside of NSW that add value to Metgasco’.

It will continue its PR activities directly and through industry lobby group APPEA.

Metgasco shares closed at 6.3 cents yesterday.


Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.

7 COMMENTS

  1. “This is despite wide acceptance of an imminent shortage of gas supply in NSW and demands from many sections of the business community for action to stimulate the gas industry so as to ensure acceptably priced gas supplies are available”

    Another bit of mis-information? Mr Kloppers stated that BHP Billiton had more than enough to go around. I can only presume that mr henderson is calling Mr Kloppers a liar.

  2. Mr Henderson saying that NSW will run out of gas because it is not sourced in the state is like saying NSW will run out of Holden cars because they are made in South Australia. A complete lie.
    The gas pipeline from Moomba in SA is being upgraded and a new pipeline is under construction from Qld to Newcastle with a second, almost parallel one in the planning/approval stage.
    Gas prices will increase in NSW but only because suppliers will soon be able to sell to the overseas market at a far greater price than is currently paid here so local consumers will have to pay a similar price to gain supply.

  3. No matter who is in power, and regardless of whom Metgasco chooses to poke the blame at, one thing won’t change. Metgasco and its unsafe industry will never be welcome here, and the good folks of this area will continue to block any future activity by that company and others like it until such a time as our environment, our livelihoods, and our future generations are safe.

  4. What are they doing about that fellow they contracted to take the drilling sludge to a licensed facility in Queensland who was proved to have taken it to his own place instead? The fellow who’d already been fined by the EPO for doing the same thing and endangering the river? Did he do that with Metgasco’s knowledge or not? Action after action after action of theirs shows they’re not to be trusted.

  5. Kingfisher well with its tight sands gas is the only one Metgasco have fracked. It is close to homes in Casino, the RV Village and the airport. Those people deserve to be protected from noise, truck traffic, air emissions, and loss of property values. Metgasco would love to operate their wells close to people’s homes. This is unnacceptable for many reasons. Only recently, during the Metgasco decomissioning process at the Kingfisher well pipes from the well were forcibly and uncontrollably ejectedhigh into the air from the well and residents reported the sounds of an explosion.

  6. The CSG companies complain about the new regulations not being ‘defined’ when it is really simple, NO mining near people! and hopefully these same companies will have the moral fortitude to NOT destroy native fauna and flora, you know normal behaviour for people with social values who give a shit about other people and not just profits

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Byron carjacker and stolen vehicle still not found

Police say that a man carjacked a 17-year-old in Byron Bay just before midnight on Friday.

Man arrested after shots fired in Dunoon

A police report says a 63-year-old man man has been arrested following multiple public place shots fired overnight.

Police operation Billinudgel Nature Reserve

Gary Opit, Brunswick Heads On 22 February residents on Jones Road noticed a major police operation with officers from eight police cars and associated dogs entering...

Thanks David Gile – but on Musk

Robin Harrison, Binna Burra I want to thank David Gilet for his appreciation of the thoughts I’ve shared here. It’s very welcome as I’ve been equally...