Metgaso Limited (ASX: MEL) today announced the suspension of the company’s Clarence Moreton exploration and development program. This is a carefully considered decision by the Metgasco Board in light of the uncertain operating environment created by the New South Wales Government’s announcement on 19 February that it intends to change the regulations for Coal Seam Gas (CSG) operations in the State.
Long term tenure over Metgasco’s exploration licences with a minimal work program has been sought and granted to ensure the value inherent in the company’s extensive gas reserves is retained. Given this decision, the company will also be reducing its organisational structure in line with its reduced operating activities. Once CSG investment regulations are firmly established and it once again becomes prudent to invest shareholder capital exploring and developing CSG reserves in New South Wales (NSW), Metgasco will resume its operations.