The troubled explorer agreed to defer its legal action last week in order to give the OCSG time to conduct its review of what the company viewed as an unlawful decision to suspend the well.

"The grounds for Metgasco's claim are that the decision was unlawful because it was not authorised by legislation and was made without affording Metgasco procedural fairness," the company said in a statement when it initially instigated legal action earlier this month.

The company is now planning to investigate the government's reasons for continuing the suspension and will re-initiate legal proceedings if it considers that its perceived errors in the original decision have not been addressed.

"The government should not allow itself to be intimidated by activists making spurious and ill-informed claims about drilling for natural gas, when the state is running out of gas and regional areas are crying-out for investment," Metgasco managing director Peter Henderson said.

The unconventional explorer is investigating all its options, including whether it may be able to recover damages suffered as a result of the suspension, which at last count were marked up to around $21 million.