Trouble brewing? Coal seam gas and the water table (part 2)
Earlier this week, the Council of Australian Governments (COAG) Reform Council said that the Commonwealth had now set up the “Independent Expert Scientific Committee on Coal Seam Gas and Large Mining Development” (IESC). This will give governments solid scientific advice on the potential effects of CSG and large mining developments on water resources. In the five years to 2010/11, CSG has increased from 2% to 11% of Australia’s total gas production (read the media release).
New NSW government regulations, banning Coal Seam Gas activity within two kilometres of residential areas (as well as horse-breeding and wine producing areas), saw Dart Energy (ASX: DTE) place its Fullerton Cove CSG project near Newcastle on a “care and maintenance” basis. Dart’s share price has declined from $1.36 to $0.06 (-95%) in the past thirty months, and with 879m shares on issue, it has a market capitalisation of $52m. After reporting a loss of $11.3m in the six months to 31 December 2012, its net cash reserves were cut to $23m. Meanwhile, Drew Hutton, president of the anti Coal Seam Gas group “Lock the Gate”, said, “If it is necessary to protect residential land and industry clusters, it would seem just as important to protect our best farmland”.
Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Paul Audcent
:
Yes I watched that ABC ‘Four Corners’ yet there was no mention of Origin and its LPG gas and conversion from CSG! Strange are Origin doing the right thing by the farmers? I must admit having an interest, I own Origin shares, This world of business is a strange one indeed. But the program was a real eye opener and I presume the rush for royalty cash by State governments may have had something to do with the lack of proper control?