Business

Metgasco cites ‘political climate’ in gas reserves downgrade

METGASCO has reclassified its assets and gas reserves, citing uncertainty in the NSW political climate.

The move, ratified by the Metgasco board, comes as the company prepares its annual accounts.

In a statement issued to Australian Stock Exchange shareholders on Friday, the company announced "Metgasco's board determined that it was appropriate to reduce the value of previously capitalised exploration and evaluation expenditure to nil, and reclassify its reserves to resources".

"This is despite the company's confidence in NSW needing its gas supply and in the medium term development of the company's coal seam gas resources," the statement said.

Metgasco managing director Peter Henderson said despite the reclassification the company remained determined to explore gas reserves in NSW.

"The board fully considered these accounting matters and considered that the changes are appropriate to properly reflect the state of Metgasco's New South Wales business interests," he said.

"The company's current share price indicates that the financial market has already recognised the New South Wales political climate and its effects on Metgasco.

"Despite the asset impairment and reserves reclassification, Metgasco remains committed to pursuing the significant gas potential in its New South Wales exploration licences."

The NSW Government's Office of Coal Seam Gas suspended Metgasco's permit to test drill a tight sands gas well on a Bentley property in May.

Metgasco has begun legal action in the NSW Supreme Court.

Topics:  coal seam gas, csg, metgasco, unconventional gas




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

'My husband lasted 6 weeks as a stay at home dad'

APN Hey Mummy Feature for online - stock images. Katie Dykes being interviewed for the webisodes. Photo Marc Stapelberg / The Northern Star

FROM the outside, being a stay at home mum looks like a breeze.

THE EXPERT: Stop judging working mothers

SUPER MUMS: Being a working mums comes down to perfecting time management.

"WORKING for money is all right; so is working because you want to.”

OPINION: How to prepare your child for day care

Your kids will love childcare, but it may take some adjusting.

GETTING your child ready for day care is vital.

Health and nutrition with kids - how do you balance it?

HOW important is health and nutrition in your household?

Smack or no smack - where do you stand?

THE debate is reignited - is smacking acceptable?

Technology and kids: Do you ever cut their wi-fi?

Check out our new video series featuring mums having a chat

Doctor 'firmly advised' mother against home birth

An inquest into the home birth death of a baby at Nimbin is continuing in Lismore.

UPDATE: Inquest hears doctor was 'struck by the nonchalance'

7 cheap homes to buy in Lismore right now

Three-bedroom home for sale in Keen St, Lismore.

It might be easier than you think to get out of the rental cycle

MISSING PERSON: Have you seen Sarah?

18 year old Sarah McDonald.

She was last seen on Monday leaving the Lismore Library

Latest deals and offers

PROPERTY BOOM: Coast prices set to skyrocket

Like other areas in south-east Queensland, the Sunshine Coast is at the start of the upturn on the property clock.

Values predicted to rise 25-33%

DIY: How to build a backyard fire pit

DIY stars and Weekend magazine columnists Ayden and Jess Hogan.

Would you build this for your backyard?