14.1 C
Byron Shire
June 24, 2024

Metgasco announces merger

Latest News

Curtains up on Byron High’s debut musical

After many months of hard work and rehearsing, Byron Bay High School students and staff  are about to perform...

Other News

Labor announces its councillor ticket for Byron Shire

Labor councillor, Asren Pugh, and South Golden Beach local, Janet Swain will head the Byron Shire Labor team to contest the Byron Shire Council elections on September 14.

Teething problem

I think it’s really stupid and potentially dangerous that the concept of an absorption period of charging a lead...

Byron Council candidates jostle for position

It was the type of motion that comes up at Byron Council quite regularly – a broad, uncontroversial political statement that is unlikely to make a difference in the grand scheme of things. 

No ‘key worker’ or ‘affordable housing’ for Ballina Council’s Wollongbar development

On the second last piece of Ballina Shire Council-owned residential land they have decided to develop the land with no affordable or public housing components. 

Bruns, the fishing town, becomes a musical!  

‘All the old salts have moved on… All the old salts have moved on… I’m wondering where they’ve gone…’

Bruns garden for community under threat

Bruns local Toni Storer thought one way to help her neighbours and other locals to survive the economic downturn was to stop mowing and weeding the Council strip at the front of her house and to pop in a veggie garden.

Metgasco's licence to drill at Bentley remains suspended. Now the company wants to merge with Elk Petroleum, which has resources in the US. Photo Eve Jeffery.
Metgasco’s licence to drill at Bentley remains suspended. Now the company wants to merge with Elk Petroleum, which has resources in the US. Photo Eve Jeffery.

Chris Dobney

Junior gas explorer Metgasco (MEL) has announced to the Australian Stock Exchange (ASX) that it plans to merge with fellow ASX small-cap miner Elk Petroleum (ELK).

Elk is currently exploring oil reserves in the Rocky Mountains of the US and is in the process of building the Grieve oil pipeline in the American state of Wyoming.

The company has suffered a massive drop in its share price as a result of tumbling world oil prices. Elk shares, which were trading at $1.30 as recently as May this year, are now down to 40 cents.

Metgasco shares rose from 40 cents to 50 cents on the news.

Metgasco’s shareholders will own 77 per cent of the merged company with Elk shareholders taking the remaining 23 per cent.

In the short term the merged company will focus resources on bringing its US resources into production while it awaits the outcome of the suspension of its northern rivers exploration licence and a further government decision on its Casino production licence.

According to the statement, ‘Metgasco considers that significant NSW field activity has the potential to be further delayed until a stable regulatory framework is demonstrated and investment confidence has returned.’

Metgasco CEO Peter Henderson told ABC radio this morning, ‘We’re keeping our interests in the northern rivers region. We’re very enthusiastic about them we’ve spent a lot of money developing gas resources there… it’s a question of timing.

‘By taking this action with Elk it actually improves our chances of developing the gas resources in NSW,’ he added.


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.


  1. Living and Loving a CSG FREE Northern Rivers, Always.!!! Today a CSG Free Northern Rivers, tomorrow a CSG Free NSW, CSG Free Australia & CSG Free EARTH.

  2. I agree with Raquel, keep them out and keep the Northern rivers free and hopefully Australia free. Happy Christmas and a CSG free New Year

  3. The Fiasco’s oft-cited exit strategy (a.k.a. diversification) is forming!

    WHEN the court ruling goes against them this will be a fine vehicle for the few dollars left after the lawyers get their cut – without this deal they would be little more than a “cashbox” with some tenuous gas leases (facing cancellation when the Alliance are swept from power) and no social licence to operate.

  4. Peter Henderson grasps yet again at whatever straw he can in his attempt to up Metgasco’s woebegone share price. And yet again, he fails to note that, whatever name it goes by, Metgasco just ain’t a rose and isn’t welcome here. Ever.

  5. When 93-98% of communities in the Northern Rivers, who pay taxes to and the salaries of the elected servants of the people, decide that they categorically DO NOT WANT CSG mining in THEIR communities, how are these corporate thugs allowed to impose their will on these communities? Are our duly elected politicians working for the people or are they in the employ of the corporate thugs?


Please enter your comment!
Please enter your name here

Wallum developer welcomes arrests

The developer behind the beleaguered Wallum urban subdivision on rare and sensitive land in Brunswick Heads welcomed the recent arrests of protectors who have blockaded the site over the last four months.

Fresh police appeal for witnesses in Gage Wilson case

Police have issued a fresh public appeal for witnesses in the case of missing Mullumbimby man Gage Wilson.

Ballina MP mostly welcomes state budget announcements

Greens Member for Ballina Tamara Smith has welcomed some of Labor’s funding announcements in last week’s state budget, including a new Fire and Rescue station for Byron Bay and more firies.

Daniel Mookhey walks the line with NSW budget

NSW Treasurer Daniel Mookhey's second budget in nine months, unveiled last week, was a classic Labor document in its support for education and health, somewhat brave in its slugging of property investors, and disingenuous in its blaming of the GST carve-up for the financial woes of NSW going forward.