The stock is currently trading at about 51 cents a share, up about 18% from last week when shares were valued at about 33 cents.
The stock is currently trading at about 51 cents a share, up about 18% from last week when shares were valued at about 33 cents. Jacklyn Wagner

Metgasco at a loss over investment

METGASCO'S share price has soared in recent days although the company has denied knowing why there is sudden investor interest in its activities.

The stock is currently trading at about 51 cents a share, up about 18% from last week when shares were valued at about 33 cents.

Queensland based ERM Power has just acquired a 6 % stake in the company. However, that alone does not account for the price spike.

Some media outlets have speculated the most obvious player was LNG, which is 20% owned by China National Petroleum. It is building a facility plant in Gladstone and is short of gas.

LNG's stock price also rose, by 10% this week to 38 cents a share.

Metgasco said that the company was not aware of any material information which had not been announced to the market that may explain the sudden investor interest.

Meanwhile, the NSW Government in its submission to a parliamentary inquiry, released on Wednesday, said co-existence of farming and mining was essential.

The government acknowledged community concerns about its potential impact on water supplies and food production, but said "balanced co-existence of mining (including CSG) and agriculture is not only possible, it is essential".

While the industry was currently worth just $34.5 million, production could exceed $1 billion by 2025, the submission said.

Greens MP Jeremy Buckingham said the government's support for coal seam gas would worry farmers, who have voiced concerns about its impact on agriculture.

"Many farmers were under the impression that the government would protect agricultural land and precious water resources from coal and gas mining," Mr Buckingham said in a statement.

 

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