North coast coal-seam gas (CSG) miner Metgasco has lost almost $120 million up to the end of last year, with some of the losses due to its ongoing legal battle with the NSW government over the Bentley licence suspension.
And the company is still waiting to get formal approval for its gas production licence to produce gas for its planned Richmond Valley power station.
The company’s latest financial report shows it recorded a loss of just over $2 million ($2,105,164) for the half year to December 31, 2014 and an accumulated loss of almost $120 million ($119,761,170), with its total equity at just under $10 million ($9,906,903).
The report says that in the six-month period, its main activities involved the NSW Supreme Court action to try to overturn the suspension on its Rosella drilling approval and a merger with US miner Elk Petroleum Limited.
Directors say the company incurred ‘significant legal expenses’ over the ongoing legal action. It is still waiting on court decision.
The company lost a similar amount in the last half 2013.
Meanwhile, Metgasco is also still trying to seek the formal award of its production licence from the NSW government for the Richmond Valley Power Station and Casino Gas Project development approved in June 2010.
Directors say the company initially applied for the gas production licence (PPLA9) in 2008 and that ‘seven years later, the government is still to issue the formal licence document’.
The company’s latest quarterly activity report says ‘Minister Chris Hartcher announced the licence award in September 2012.
‘Metgasco has been offered the production licence and accepted all conditions on two occasions, the last being on 22 November 2012, and paid $140,000 of grant and security fees for the licence in 2010 and 2011,’ the directors said.
Former energy minister Mr Hartcher quit parliament in disgrace after an Independent Commission Against Corruption (ICAC) inquiry last year.
The former Liberal Party minister was accused of masterminding a scheme to funnel illegal political donations to candidates before the last NSW election.