necessary & emerging

From 2013 Edison report (link below).

Metgasco has spent more than A$100m over a 10-year CSG work
programme identifying a 2P reserve base of 428PJ in NSW’s Clarence Moreton basin. However, in March it announced the immediate suspension of all activities in response to the NSW government’s flagging of further changes to the NSW CSG policy regime. With c A$20m cash on hand and no debt, “where to from here?” for Metgasco is for now a very open question.

Metgasco has a sole focus on the Clarence Moreton Basin in the north-eastern corner of NSW, where over a 10-year work programme it has undertaken extensive seismic and drilled nearly 50 wells. A 2P reserve base of 428PJ, a 2C resource
base of 2,511PJ and Petroleum Initially in Place (PIIP) of 24tcf have each been defined. With the current resource estimates accounting for just 10% of its acreage holding, Metgasco had been targeting a potential reserve base of >5tcf. Metgasco had been scoping a 145km pipeline to connect its acreage with the Roma to Brisbane high pressure pipeline to connect with the East Australian gas market. As an initial stage, it had been planning to commence supplying gas to a local industrial customer during 2013 with plans for a larger-scale roll-out.

On 30 June, Metgasco reported cash on hand of A$21m, which approximates the amount raised from shareholders in Q412 via an institutional placement and share purchase plan, each at A$0.20/share.

http://www.edisoninvestmentresearch.com/sectorreports/Australian_onshore_150813.pdf

At around 10c this is a great buy. Early profits being taken and people now building positions.