A vote to sell the three Northern Rivers narrowly backed the board’s recommendation to take the $25 million on offer.

Proxies were 116 million for the sale, 109 million against, but when the poll was called the vote widened 150 million to 108 million.

It’s hardly a ringing endorsement for the plan proposed by chairman Len Gill and managing director Peter Henderson, but at least it clears the decks and gives the company a mandate to take the funds and go looking for a new project in a market where cash is king.

"This is a very disappointing day for all of us who believed in an oil and gas exploration in the Northern Rivers," Gill said.

"We are not defenders of the NSW government and its actions. But it is also our job as board members to negotiate robustly and put the best option to shareholders," he said.

He urged shareholders to accept the offer so the company could move on and find other opportunities in the oil and gas industry, which they did.

The board didn’t get its own way completely.

The company took a first strike on its remuneration report, and there was a strong protest vote against the re-election of Greg Short as a director, although he was re-elected.

A bid to put Grant Dunham on the board by rebel shareholders was also narrowly averted, with shareholders accepting the board’s recommendation he not be elected.

Henderson told the meeting that Metgasco’s plan is to now decommission and rehabilitate the two remaining CSG wells, shut up its Casino shopfront and workshop, let go its remaining staff in the region and sell the land it has purchased in happier times for the proposed Richmond Valley Power Station.

Henderson left open the door on resuming talks with Elk Petroleum over the Grieve EOR project in Wyoming, as demand for oil and gas are likely to continue to grow, but he said the company would look broadly, targeting distressed sellers with its $30 million in cash.

“There will be opportunities for which Metgasco can help finance development opportunities that other small to medium companies are struggling to finance,” he said.

“We might also be able to add value to shareholders through an M&A strategy, bulking up with well-considered M&A deals.”

The company will look at established onshore conventional producing assets and exploration assets with back-end work and expenditure commitments to avoid large expenditures over the next few years, in a depressed funding environment.

“We will be investing in places that have a supportive investment climate – not NSW, not

Victoria,” he said.

He said the board is confident it can revitalise the company, and “take it away from the frustrating and value destructive regime in NSW and make Metgasco a company that provides good returns to shareholders, one in which you are proud to invest”.

The vote has not placated angry shareholders, who have previously flagged legal action to stop the sale, saying the company has given away billions of dollars of gas in the ground.

Local green groups and farmers argued the Bentley project was incompatible with the region's rural industries and environmental values.

Drilling by Metgasco had sparked mass protests and resulted in the so-called Bentley Blockade.

Metgasco has also announced an on-market buyback for up to 10% of its shares.