Metgasco has this morning confirmed that it is in negotiations with the state government to seek an out-of-court settlement over the suspension of its PEL16 exploration licence near Casino.
The company released a statement via the Australian Stock Exchange confirming the announcement.
"Metgasco continues to argue that the Government's suspension decision was unlawful and unjustified and has severely damaged its interests," the statement said.
"Court action is currently underway to have the suspension decision lifted."
The announcement comes less than two weeks after the government opted not to provide any evidence to the Supreme Court to justify its suspension of Metgasco's operation in May.
A spokesman for Resources Minister Anthony Roberts has reportedly confirmed the government was in discussions with Metgasco.