11/17/2014

RIGZONE - Metgasco Responds to Gas Plan Mooted by NSW Government in Australia

Metgasco Responds to Gas Plan Mooted by NSW Government in Australia

by Metgasco Ltd.
Press Release 11/14/2014
URL:http://www.rigzone.com/news/oil_gas/a/135916/Metgasco_Responds_to_Gas_Plan_Mooted_by_NSW_Government_in_Australia
Natural gas explorer Metgasco Limited announced Friday that it welcomes the New South Wales (NSW) Governments
recognition that gas supplies are essential to the future of NSW and that the gas industry in the Australian state can be managed
safely.
Metgasco is, however, concerned about the repeated changes in regulation and policy since the current Government came to office
and the uncertainty the latest announcement has created.
In March 2011 the NSW Government effectively put a hold on the industry while it created new regulations, which included a
Strategic Land Use Policy and a myriad of other regulations. In September 2012 it announced that the industry had the toughest
standards in the world and gave the green light for exploration and development to proceed. It correspondingly renewed exploration
licenses and announced the approval of Metgascos first production license (just south of Casino).
Since then it has taken a number of actions which have had the effect of stifling the industry.
The new policy announcement does not sufficiently clarify the business and regulatory environment for the gas industry in NSW.
Business needs a degree of certainty to justify expenditure. We now have new rules and regulatory responsibilities, many of which
will not be defined until well into 2015, uncertainty about the rules for land holder compensation and some indication that the royalty
regime might change to encourage exploration.
Metgasco has invested approximately $104.4 million (AUD 120 million) over the past ten years exploring for natural gas in NSW
and has established the second largest gas resource in the state. It did so with the expectation that its exploration rights would be
respected.
Metgasco is seeking a meeting with the Minister for Resources and Energy to clarify the impact of the new policy on the potential
of the significant gas resource in the Northern Rivers region.
It is important that the NSW Government sends a message to all investors that NSW is a place in which investment can be made
with confidence.

https://www.rigzone.com/news/article_pf.asp?a_id=135916

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