Coal seam gas explorer Metgasco will press for a multi-million dollar compensation payment from the NSW government after the Supreme Court overturned a ministerial decision to ban it from drilling in the politically sensitive Northern Rivers region.

The NSW Supreme Court on Friday struck down a decision last May by NSW Energy Minister Anthony Roberts to suspend Metgasco's drilling permit for the Rosella well near Lismore. The well was opposed by strong local protests and a campaign by radio presenter Alan Jones.

Metgasco managing director Peter Henderson said he was relieved at the court's decision and "It's an important decision for the resources industry. Had it gone against us it would have scared investors off from coming to NSW," Mr Henderson said.

Protesters at the Metgasco drill site near Lismore, NSW last year. The Supreme Court has overturned a moratorium on drilling in the Northern Rivers region.

only for the $3 million cost of abandoning drilling last May but also for the 40 per cent drop in share price Metgasco after Mr Robert's announcement. "The government's decision did us a lot of damage," he said.

Mr Henderson said the government needed to take control of the energy debate, which had been hijacked by the Greens. Mr Henderson said the court ruling showed that while companies were obligated to conduct community consultation this did not mean waiting until all the locals agreed.