“The new policy announcement does not sufficiently clarify the business and regulatory environment for the gas industry in NSW,” Metgasco said today.

“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 $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.”

The company said it was seeking a meeting with NSW Resources and Energy Minister Anthony Roberts to “clarify the impact” of the new policy on the gas resources of 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,” Metgasco said.

The NSW suspended the licence for the Rosella-E01 well near Lismore earlier this year, just days before spud, and Metgasco’s case against this “unlawful” action was heard by the Supreme Court last month.