Friday, 26 July 2013

Metgasco Limited enters the realm of make believe

This is Metgasco Limited’s attitude to Northern Rivers resistance to coal seam gas exploration and mining. Apparently local communities and councils are the forces of darkness and it a force for good.

Metgasco might like to consider whether it has permission from Lucasfilm to use these Star Wars images to support its own commercial agenda.

The company’s level of self-delusion is painfully displayed by this snaphot of its revamped website, which still claims an expectation of local gas sales by the end of 2013 despite having no wells in actual production:

Metgasco’s retreat into phantasy may be explained by the fact that its Bowerbird E03 CSG Core Well, Casino, NSW was refused by the NSW  Dept of Trade & Investment’s Division of Resources and Energy in July 2012 and its Water Management Plan rejected five months later.

And by its Quarterly Activities Report 30 June 2013 which stated that:

At the time of reporting it is still unclear how the exclusion zones will affect Metgasco’s reserves. However, it is expected the reduction could be in the order of 15% to 20% for 2P reserves and 20% to 30% for 3P reserves. Revised numbers will be calculated, certified and reported when the impact of the exclusion zones becomes clear. The revised numbers will also reflect the results of Bowerbird E04…..

Metgasco retains its development approval for the Casino Gas Project / Richmond Valley Power Station. The project is currently on hold. Apart from the NSW CSG regulatory environment, changes in the eastern coast electricity market have questioned the timing for new base load power stations. Metgasco will continue to review options, which include the building of a peak load power station rather than a base load power station….

Metgasco's commercial plan looks less like a Jedi on the march and more like a business braggart in retreat  - unable to meet even the weak environmental requirements of the NSW Coalition Government, having less available gas reserves in the future and the likelihood of a power plant which contributes to the delivery of a more expensive product.

In developed countries including Australia, increased peak demand has resulted in increased electricity cost due to the need for the installation of peaking power plants which serve for very short periods annually, normally during the peak summer days, and the cost of transmission infrastructure necessary to cope with the peak demand [Prof. W. Saman & Dr. E. Halawa, Sustainable Energy Centre, University of South Australia, 2009].

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