The New South Wales Supreme Court has reinstated the right of Metgasco Limited to drill at the Rosella E01 well.
Managing Director, Peter Henderson, said this was a landmark decision for the resources industry in New South Wales and could have implications for broader industry in the state.
“Had we lost, future investors in NSW would have had to consider the real threat of sovereign risk and NSW’s image would have been tarnished.
“We believe that our decision to pursue legal action has been vindicated. We will be seeking compensation for the damage that has been inflicted on Metgasco and its 5,000 shareholders by the NSW Government’s unlawful decision.”
He said that the company was very keen to develop a gas business in NSW and hopes to be able to work cooperatively with the Government to achieve this outcome.
“Before recommencing drilling activities in the Northern Rivers region, we would appreciate the opportunity to talk to Government”, Mr Henderson said.
APPEA has also welcomed the NSW Supreme Court’s decision to declare last year’s suspension of Metgasco’s operations at Bentley to be invalid.
The industry now looks forward to working with government to make the NSW Gas Plan a reality, to secure supply and put downward pressure on rising energy bills.