Watchtheeyes, I can only hope you are correct and the proposed...

Watchtheeyes, I can only hope you are correct and the proposed visit to Casino by Ian Macfarlane indicates MEL’s current CMB resources are being considered as a potential gas supply for NSW.

But I remain concerned all the indications are MEL has not engaged productively with the NSW Government. Just two further examples: -

Tonight on ABC “The Business” when being interviewed on the CSG summit, Martin Ferguson specifically mentioned the Santos and AGL developments. MEL was an obvious omission.

In the MEL Annual Report released today, we read that “Metgasco completed all the environmental studies and prepared the PAL early in 2013” in relation to the drilling and production required to support local gas sales. But then apparently never submitted the PAL application, ignoring a valuable opportunity to negotiate with the NSW Government. Over the same period Santos received approval to drill six wells in the Pilliga.

IMO the Board and management adopted a very foolish strategy in March by folding up camp and taking their bat and ball home. They suggest that this strategy is supported by similar action by other CSG companies in NSW. But we can now clearly see, that while Santos may have pulled back from actually drilling wells, they were proactively engaged in ongoing discussions about forward approvals. This is different from the approach apparently adopted by MEL.

I believe we have lost a valuable opportunity. The reality is that NSW can probably achieve what they desire through AGL and SANTOS. But time will tell if I am right and whether it can be rectified.