Metgasco announced that it has signed a Memorandum of Understanding (MOU) with Casino NSW based manufacturing company Richmond Dairies Pty Ltd to supply it gas.
Under the terms of the MOU, Metgasco and Richmond Dairies will work together to optimise Metgasco’s gas supply to meet the Dairies needs with a view to concluding a final supply agreement.
It is expected that a final gas sales agreement can be confirmed by the end of 2011 (calendar) and, subject to environmental and production licences approvals, first sales can be made by 3Q 2012 (calendar).
This proposed agreement is likely to be Metgasco’s first gas sale and although it is not a large volume gas sale it is an important first step in commercialising the Company’s gas resources. This inaugural gas sale agreement is expected to be the first of other prospective local gas sale opportunities including gas supply for power generation and to other domestic customers. For Richmond Dairies, the gas supply will provide a more environmentally friendly and economic source of gas for its manufacturing operations.
Metgasco’s CEO, Mr Peter Henderson, said “ This MOU is a small but important step in moving the Company from its exploration phase to the production phase of its business. Metgasco continues to work vigorously to pursue further sales opportunities in both domestic and international markets .”
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Source: Metgasco, June 14, 2011;