This recent quarter was eventful and positive for Metgasco, with the NSW Government issuing a range of new regulations, renewing numerous exploration licences and approving our first production licence to support, Metgasco’s Casino Gas Project / Richmond Valley Power Station project.
In doing so, the NSW Government gave the green light to the CSG industry. The announcements end a prolonged period of uncertainty and little field activity.
The company ended the quarter with a cash position of $20 million, which included a placement of $10.2 million, with shares issued at $0.20.
A Share Purchase Program, which provides pre-placement shareholders to contribute on the same terms as the placement is currently underway, with October 22 as the expiry date.
The highlights of the quarter were:
- the NSW Government’s announcement of new regulations and codes of practice;
- the renewal of Metgasco’s PEL 13 and PEL 16 exploration licences; • the approval of Metgasco’s first production lease, PPLA 9 (actual numbering/title still to be confirmed);
- Metgasco has been offered a new exploration licence, PEL 130, immediately adjacent to PEL 13;
- continued progress with local sales gas initiatives, with Pacific Intermodal and companies proposing compressed natural gas distribution and sales options;
- submission of a revised water management plan for Metgasco’s exploration activities;
- further preparation for the planned drilling program, with Metgasco’s new Drilling and Production Manager commencing work in August; and
- the placement of new shares to raise $10.2m to fund the ongoing program and the initiation of a share purchase plan to allow pre-placement shareholders to participate under the same terms.
The market for natural gas remains very strong, with open recognition that NSW’s contracted gas supplies expire in the 2014 to 2017 period. The NSW Infrastructure report referred to development of NSW’s CSG industry as vital and CSG as a “game changer“ for the state. The Queensland Gas Market Review forecast gas prices to be in the range of $6.50 to $10/GJ by 2015 and $7 to $12/GJ by 2020.
LNG World News Staff, October 16, 2012