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Austria-based nano-cap gas explorer ADX Energy (ASX:ADX) has cited its “concern” over its entanglement in an eco-lawsuit that has arrived at a constitutional interpretation issue.
The Upper Court of Austria, handling an objection against an environmental clearance permit lodged by several environmental NGOs in the jurisdiction, has had to send the case up the chain.
That referral comes by way of uncertainty around whether or not ADX was permitted to keep drilling while the objection was made, which the company confirmed it did on Tuesday.
This in turn has prompted ADX Energy’s own lawyers to advise the company it stop drilling in the meantime. But the question now is how long the tools-down window will go on.
Management cited concerns on Tuesday – also referencing recent disappointments hitting the $15M capped company when it comes to the results of gas drilling at its Welchau Project, now caught in limbo.
“The Board of ADX is concerned about this recent development however we anticipate that the situation will be resolved in the near future. The interruption to permitting processes by special interest groups is becoming more and more commonplace,” ADX EC Ian Tchacos said.
“This comes at a time when energy security is of great importance to Austria and its people. While testing results have been disappointing, the potential of the Welchau play remains compelling.”
As Tchacos puts it, Austria’s constitutional court has suggested the Upper Austrian court change the laws, in effect, such that appeals against environmental permits do require a company to stop drilling while they are being handled.
“The latest request and order from the Austrian State (Constitutional Court) to change the Upper Austrian law with regard to further exclusions of suspensions requested by opposition NGOs etc. must be abandoned,” Tchacos said.
That an appeal to a permit allows work to still be carried out does, prima facie, seem strange – most other jurisdictions do not allow companies to go ahead gung ho while a permit is contested. Just look at Australia.
ADX last traded at 2.6cps; down -3.7% in afternoon trades.
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