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Social Media campaigns
Some time ago I wrote that the CSM sector was getting dodgy for investors on the basis that environmental concerns would be a driving force for litigation and social media "wars".
Today's announcement by Metgasco (ASX: MET) that it was pulling out of the Clarence Moreton basin in Northern NSW seems to confirm my view. Even though Metgasco denies it was the social media campaigns that did them in the cited causes 1. The NSW government's decision to ban all CSG activities within 2km of a town of more than 1000 people. 2.The Federal Government's decision to duplicate existing environmental regulations re groundwater etc. were due to government regulations that followed on from those campaigns. That Metgasco had previously described the Clarence-Moreton basin as having " vast gas resources" and that the basin "covers an area of approximately 1.1 million acres, and contains both unconventional and conventional hydrocarbon resources" points to the seriousness of their decision. I wonder if we will see other CSM explorers that are near to farming or populated regions react similarly? If so it would confirm my view that the safer way to play the sector would be to look for large basins in arid, sparsely populated regions. (If you'd like to monitor what is being said about your company or sector Dialogix's social media monitoring could be the right tool at the right time (forewarned = forearmed)
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. Comments on this forum should never be taken as investment advice. |
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