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Author Topic: NSW Government Buys Back Gas Exploration Licences  (Read 238 times)

Icyfroth

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NSW Government Buys Back Gas Exploration Licences
« on: November 03, 2015, 07:47:51 PM »

Metgasco offered $25 million to sell three coal seam gas exploration licences back to NSW Government

Gas company Metgasco says the New South Wales Government has offered to buy back three exploration licences in the state's north for $25 million.

The State Government suspended the company's licences to drill, including at its Rosella site near Bentley in the state's north in 2014, amid allegations of inadequate community consultation.

Earlier this year, the Supreme Court found the Government had acted improperly and lifted the suspension.

The NSW Government had been negotiating compensation with the company.
In a statement to the media and the Australian Stock Exchange, Metgasco said the settlement followed "protracted discussion" with the Government since July.

The board of directors unanimously supported the settlement deal and Metgasco chief executive Peter Henderson said the board recommended shareholders vote in favour of it.

"It's a very clear proposal and it's one that the board has had to spend a long time thinking about and it has been a difficult decision to recommend it to our shareholders," he said.

Metgasco chairman Len Gill said the company still believed in the value of the project and the board had to consider the risks associated with ongoing legal action, approval delays, higher costs and funding difficulties.

In September, Metgasco announced it would go to court to seek tens of millions of dollars in damages from the Government over the drilling suspension.

Metgasco says the buy-back deal settles those disputes.

http://www.abc.net.au/news/2015-11-02/metgasco-offered-$25-million-nsw-government-to-buy-back-licences/6904330

I wonder how much the NSW government got paid for the licences by Metgasco in the first place?
Will this be a precedent for other gas mining licence buy-backs?


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