The state had until May 22 to lodge an appeal.

"The Supreme Court decision, handed down on April 24, was strongly in Metgasco's favour, finding against the government on all three major points, any one of which was sufficient to overturn the suspension order," Metgasco managing director Peter Henderson said.

"We are pleased that the NSW government appears to have recognised this and has avoided the damage it would have done to investor confidence in NSW and the waste of taxpayer funds had it appealed the decision."

Henderson said he now wanted to meet with government to discuss the damage caused to Metgasco as a result of the suspension decision, damages estimated to be as much as $10 million, and the future of the gas industry in the Clarence area where Metgasco has a significant CSG resource, and had been proving up a mix of conventional and tight gas in the large Greater Mackeller structure before various state governments started moving the goalposts.

"We would prefer to settle our claim for damages out of court," Henderson said.

"We are also keen and ready to drill the Rosella conventional gas exploration well and wish to confirm that the NSW government will maintain law and order."

Metgasco's last attempt to drill Rosella-1, a follow-up to the Kingfisher-1 discovery well, was met by thousands of protesters, and required potentially hundreds of police officers to manage.

"NSW needs a gas industry and the NSW government needs to show the investment community that businesses will be encouraged and licence rights honoured," Henderson said.