The explorer announced yesterday morning that negotiations with the government had failed to achieve a settlement over the divisive issue that has cost the company tens of millions, so it is returning to the courts.

The company said it had “paused” discussions with government after negotiations had “not resulted in a settlement” of the matters between the two parties.

Metgasco will now seek damages from the NSW government in relation to its “unlawful” suspension of the company’s 2014 drilling program at the eleventh hour, and is preparing for a judicial review to have PEL 426 renewed and for the award of a production licence for PPLA 9, both of which have been stalled for several years.

In the meantime, it will keep working where it can, and is ploughing ahead with securing contractors for a seismic acquisition program to the east of Lismore and for the drilling of the Rosella conventional/tight gas project.

Gasfield Free Northern Rivers co-coordinator Dean Draper said this morning’s announcement was Metgasco trying to strong arm the government, and hold the Northern Rivers region to ransom.

“No one is in any doubt that the Northern Rivers should be gasfield free forever. Metgasco are the only ones deluding themselves that it’s possible for unconventional gas to be mined anywhere in the region,” he said.

“It’s not going to work because this region is united in opposition to this industry.”

Gasfield Free Northern Rivers co-coordinator Elly Bird said Metgasco’s tantrum gives government and opening to kick Metgasco out of the region.

“If Metgasco doesn’t want to conclude negotiations for a graceful exit from the Northern Rivers, then that’s all the cue government needs to call their bluff, walk in to parliament next week, cancel the licences by act of parliament and protect the Northern Rivers forever through legislation,” she said.

“We have no doubt, the NSW government could walk into parliament next week and protect the Northern Rivers – every other political party in the state wants them to do so.

“The government tried to negotiate, and has mucked around with voluntary buy-backs. This is their opportunity to make a bolder move: make the Northern Rivers gasfield free forever, cancel all the licences and give the community what it wants.”

Metgasco says it will issue further details of the seismic and drilling programs over the next few months as it finalises contract terms.

Managing director and CEO Peter Henderson said the company, which has been assailed by anti-fossil fuel activists on its Rosella project near Bentley, will do so expecting the government to “provide all necessary police protection to allow the lawful activities to be undertaken safely and securely”

“We were given assurances in this respect as part of our discussions with government,” Henderson added.

“Metgasco would have preferred to settle its claim for 2014 suspension damages with the NSW government out of court and is happy to resume good-faith discussions with government in this respect, but not at the expense of having to indefinitely suspend its business activities.”

The company just posted a $3.8 million loss for the past year that largely constituted legal bills and administrative costs around its battle over the NSW government’s decision to cancel drilling approval on the Greater Mackellar structure.

That came on the back of a $85.9 million loss from 2014 after it decided to write down the value of its Clarence Moreton Basin CSG deposits near Casino, as government policies continued to stymie development over several years.