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.

Dance injury launches young woman’s fashion career

19-year-old Coco Rogers found a new passion in fashion design after a broken back stopped her from becoming a professional dancer.

A 19-year-old former dancer from Dalwood launches fashion label.

Byron women connect in response to serial sexual assaults

Byron Bay lighthouse. Photo Mireille Merlet-Shaw / Northern Star

Women won't stop walking, just because groper is still on the loose

Nats promise to restore Bangalow Weir if re-elected

An artists impression of the restored Bangalow Weir.

$250,000 for the Bangalow Weir to be restored promised

Latest deals and offers

Lismore real estate agent celebrates 100th birthday

LJ Hooker Lismore principal Paul Deegan is the third generation to operate the 100-year-old family business.

A Lismore real estate is celebrating 100 years in business.

Coastal development keeps young people on Northern Rivers

Wes Bale is a 27-year-old born and bred Lennox Head local who is an example of the demographic shift in the region.

Young Northern Rivers residents are looking closer to home