Metgasco has received advice from the NSW Office of Coal Seam Gas that it must suspend all work on the Rosella E-01 exploration well until the Company can demonstrate to the satisfaction of the Office of Coal Seam Gas that Metgasco has complied with condition 8 of the PEL 16 exploration licence regarding community consultation.
“ Metgasco is confident that it is in compliance with the PEL 16 licence conditions and is seeking to demonstrate this to the government ,” Metgasco said in a statement.
The company is in the process of mobilising a drilling rig to drill the Rosella well and therefore this advice from the NSW government comes at a very critical time. Accordingly, the company has sought and obtained a 48 hour ASX trading halt pending the opportunity to meet and discuss the matter with the government so that there is a clearer understanding of the outlook for rig mobilisation.
“ Metgasco will advise the market as soon as the situation becomes clear, ” Metgasco added.
[mappress] Press Release, May 15, 2014; Image: Metgasco