Newspaper article The Northern Star (Lismore, Australia)

Metgasco Takes $3.8M Hit Company's Future Hinges on Licence Buyback Talks

Newspaper article The Northern Star (Lismore, Australia)

Metgasco Takes $3.8M Hit Company's Future Hinges on Licence Buyback Talks

Article excerpt

Byline: Hamish Broome hamish.broome@northernstar.com.au

METGASCO has copped a $3.8 million loss in the 2014-15 financial year while managing director Peter Henderson pocketed more than $612,000 in cash, super and share entitlements.

The company's annual report, released yesterday, came during closed-door negotiations with the New South Wales Government over the future of its Northern Rivers operations. Sources said they could reach a conclusion within the next six weeks.

Metgasco has now cost investors $116 million since inception, with last year's loss bringing its remaining equity to just $8 million.

A Metgasco share can now be bought for six cents.

The company's annual report said its negotiations with the government would "determine the company's future", with a government buyback of its three Northern Rivers gas licences now officially on the cards.

A buyback was listed in the report as one of four options for the company.

It would be contingent on any offer by the government being approved by shareholders, after which the company would use the proceeds to invest in opportunities outside NSW - effectively leaving the Northern Rivers for good. …

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