UBS said this ongoing review was not likely to have an outcome within two months.

“Our understanding is that options will be presented to the board at the next meeting in June and a formal decision will be made shortly thereafter,” UBS said.

“If a decision is made to exit it remains unclear whether AGL's Gloucester gas project will progress or not under AGL.”

Environmental opposition groups, which already had a victory when AGL suspended the Waukivory pilot fraccing operations at the project in late January, are applying pressure once again.

According to the ABC, the Hunter Valley Protection Alliance has asked AGL to reconsider its move to delay the next HV community consultative committee meeting on CSG until after October.

The group reportedly wanted a “quick decision from AGL on the future of its CSG activities in the region”

Meanwhile, UBS believes AGL’s plans to target $1 billion of asset sales within two years could create a dividend boost.

“We see no natural area for AGL to invest in, outside of the problematic Gloucester gas project, and as AGL's target credit rating is BBB it’s most likely they will return the cash,” UBS said.