A listing on the Australian Stock Exchange has revealed the federal government provided almost $400,000 in funding to MEC Resources, the company conducting seismic blasting off Newcastle and the Central Coast.
In the listing, MEC Resources says "the company was granted a Research and Development incentive in the quarter ended 31 December 2018 after recent seismic activities within PEP 11. An amount of $384k was received under the scheme."
The issue of seismic testing off the coast of Newcastle, the Central Coast and Sydney has been a 12-month long saga since Asset Energy were given approval off the National Offshore Petroleum Safety and Environmental Management Authority in January last year. The approval was given to conduct testing, which involved sending sonic blasts into the ocean floor to identify natural gas deposits. Since then, large-scale community protests have taken place.
Founder and co-director of Save Our Coast Natasha Deen said the grant is out of line with community expectations.
"We thought the project would become financially unstable and now of course with the news that the government has given the companies a grant to prop them up, well we just cannot believe that," Ms Deen said.
Meanwhile, potential investor Sacgasco has withdrawn its support for the PEP11 project "due to unresolved issues at the joint venture level and complex approval procedures."
Sacgasco’s Managing Director Gary Jeffery said PEP11 is a technically interesting project. However, "the uncertainty around approval risks and timing associated with regulatory and public processes make the project unattractive for Sacgasco shareholders."
The Perth-based company announced it had refused an option it received last year to acquire RL Energy, the company engaged in a farm-in agreement with Asset Energy, which owns the PEP11 title.
A Farm-on-agreement is a contract signed between two companies, the Farmor and the Farmee, where the Farmor is the owner of the acreage and the Farmee is willing to perform the drilling and exploration in the acreage of the Farmor.
NSW Greens Marine and Fisheries Spokesperson Justin Field said Asset Energy and their remaining partners should heed the warning and shelve plans for more seismic testing before they waste more money on an unviable project.
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| Satellite image of the seismic testing area. Image: The Newcastle Herald. |
