News

Metgasco admits protests delay CSG operations

Metgasco admits to the ASX that protests have delayed its operations.
Metgasco admits to the ASX that protests have delayed its operations. Cathy Adams

METGASCO has admitted to investors for the first time that community opposition to coal seam gas was disrupting its operations.

In a statement to the Australian Stock Exchange yesterday, Metgasco said protest action caused delays in drilling at Glenugie and also resulted in the company deferring one of its planned core wells.

"Our program started a little later than expected as a result of a range of factors which included rig availability, approvals and some protest action," CEO Peter Henderson said in the statement to the ASX.

He said: "Given the delayed start to the program, we have deferred one of the three planned core wells so that we can keep the more important lateral/pilot and conventional wells on schedule."

Activist and lecturer in law at Southern Cross University, Aidan Ricketts, who has been critical of Metgasco's failure to disclose the protests in the past, said the company had a legal obligation to ensure full "transparency" for investors.

"It's something that has been an issue for a while with Metgasco's previous statement to the market never mentioning the Lismore poll or the social movement," he said. "There is a line that is reached where a social movement represents a risk to investors and I think we have to admit Metgasco reached that line a long time ago with the size of the social movement."

While the share price fell almost 3% on the news to 17 cents, Metgasco remains upbeat about its outlook, hoping to transition from exploration to a commercial phase this year.

"Parallel with the drilling program we are seeking approvals to allow us to sell gas locally and position the business for production growth over the next few years," Mr Henderson told the ASX.

 

University still holds shares in Metgasco

ONE of Australia's leading universities, which is a top 20 shareholder in Metgasco, says it is still planning to sell its shares more than a year after promising to do so.

The Australian National University, which holds more than $900 million in listed and unlisted investments, holds 2.5 million shares in Metgasco.

In October 2011, the university promised to sell the stock, but hasn't.

While the stock does not represent any untoward investment behaviour by the university, it has grated on students who oppose the CSG extraction.

The issue has sparked a Freedom of Information application from a students group called the ANU Environment Collective that wants to see the stock sold.

ANU said yesterday it was still planning to sell down its shareholding in the company, but there were "few potential buyers".

APN Newsdesk
 

Topics:  coal seam gas, metgasco



Banana Festival makes a splash

Redland Shire Marching Drum band.

The Tweed Valley Banana Festival was a huge success.

Creating maximum potential in our youth

FUTURE LEADERS: Eight students and their mentors participated in the Max Potential program.

Students show their max potential in the community.

Gas smell concerns ongoing

SMELLY: The odour you can smell at Chinderah is emanating from the Tea tree plantation.

Investigations of the fuel storage systems proved inconclusive.

Latest deals and offers

Mick Jagger to pay £2.5m to the woman carrying his baby

Mick Jagger is reportedly paying millions to pregnant ballerina

Navy man Keller ready to marry a perfect stranger

Former Navy engineer Keller is a participant in season three of Married At First Sight.

Tattoos are just the surface of Married At First Sight groom.

Callea channels old for new album

Anthony Callea will play Twin Towns on Friday, September 2 as part of his Backbone national tour and album release.

Anthony Callea at Twin Towns.

Ozzy cheated with 5 women in 5 countries: Sharon

Sharon Osbourne claims her husband Ozzy has cheated on her

The Big Music Quiz gives The Block a run for its money

Darren McMullen hosts the TV series The Big Music Quiz.

NEW challenger in TV ratings race shakes up Sunday night.

Britney Spears calls Carpool Karaoke appearance "awkward"

Britney Spears admits her Carpool Karaoke segment was "awkward"

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

Investors eye Gladstone's $4m island with resort approval

UP FOR SALE: Turtle Island is on the market.

CHINESE and Sydney investors flag interest in Gladstone island.

Take a sneak peek at this $19m Whitsunday mansion

Mandalay House features a private helipad.

Mandalay is currently on the market with an asking price of $19m