Metgasco hopeful of beating NSW in court November 28, 2014 - 1:43PM Coal seam explorer Metgasco is hopeful of winning a legal victory by Christmas against the NSW government for suspending its licence to drill. Energy Minister Anthony Roberts made the order in May after an audit found the company hadn't properly consulted the community about drilling exploration wells at Bentley, near Nimbin in northern NSW. The coalition government also referred Metgasco to the Independent Commission Against Corruption. In June, Metgasco filed for a judicial review in the NSW Supreme Court, arguing the minister's decision was "unlawful" because the company had been denied procedural fairness. Metgasco chairman Leonard Gill told shareholders on Friday he was hopeful of a court victory. "We are quietly confident of the outcome," he said. We do not know the timing of the judgment; although our legal advisors advise that based on experience we may get a decision prior to Christmas. Mr Gill said he expected the state government to settle in the event of a Metgasco court victory. "Failing this, we will be looking to pursue damages after carefully considering the findings of the judge," he said. Any decision will also need to consider the issues of time and cost. Metgasco's share price plummeted from 8.8 cents to 4.9 cents in May following its licence suspension. Its share price stayed at that level on Friday, after gaining 0.1 per cent by 1322 AEDT. "Metgasco's share price at present is a clear indication that many in the investment community are not confident in the NSW government's resolve to honour exploration rights," Mr Gill said. The net result is that, at least for the gas industry, NSW is not currently viewed as a good place to do business and the government's sovereign risk reputation looks questionable.