Coal seam gas explorer Metgasco has successfully challenged the suspension of its drilling licence by the NSW government.
The company's licence to drill the Rosella well near Lismore in northern NSW was suspended by Resources and Energy Minister Anthony Roberts in May 2014, on the grounds the company hadn't properly consulted the community about its exploration.
But the Supreme Court on Friday ruled the minister's actions were not made according to law.
Notice of the suspension "came as a bolt from the blue to Metgasco", Justice Richard Button ruled, and procedural fairness was not implemented.
Justice Button also noted the public controversy leading up to the minister's decision to suspend the licence, and said his ruling related only to the legal processes followed, and not the "desirability" of Metgasco's activities in the northern rivers region.
The government has been ordered to pay Metgasco's legal costs.
Metgasco said it was reviewing the court's decision before issuing a detailed response.
Its shares were up 2.1 cents, or 37.5 per cent, at 7.7 cents at 1245 AEST.
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