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Brisbane, July 27, 2011 (ABN Newswire) - Meridian SeamGas operator WestSide Corporation Limited (
ASX:WCL) is pleased to announce a 93 per cent increase in total Proved and Probable (2P) reserves attributable to the joint venture, based on results from the first stage of its reserves expansion program.
Independent certifiers Netherland, Sewell & Associates Inc. (NSAI) now estimate Meridian SeamGas had 2P reserves as at 30 June 2011, totalling 433 Petajoules (PJ), or 221 PJ net to WestSide.
This represents a 209 PJ increase on the 224 PJ of gross 2P reserves NSAI attributed to the joint venture as at 30 June 2010, in its report announced on 19 April 2011 in WestSide's ASX Release: NSAI update boosts Meridian SeamGas reserves at time of purchase by 30%.
WestSide's Chief Executive Officer Dr Julie Beeby welcomed NSAI's new report confirming the availability of additional commercial reserves to provide a strong platform for growth over the coming year and beyond.
"We are very pleased to have exceeded our targeted 200 PJ increase in 2P reserves, providing us with a substantial reserves base to underpin long term gas supply agreements," Dr Beeby said.
The upgrade more than doubles Meridian SeamGas's gross uncontracted 2P reserves from 167 PJ to 376 PJ, significantly enhancing the joint venture's ability to participate in Queensland's emerging Liquefied Natural Gas export industry being developed at Gladstone.
Dr Beeby said NSAI had revised its estimate of Meridian SeamGas's total 1P reserves down by 15 PJ from 22 PJ to 7 PJ. This was because production from new wells and work-overs had not yet increased sufficiently to offset natural field decline, economic conditions and the allocation of increased operating costs.
Dr Beeby said WestSide and Joint Venture partner Mitsui E&P Australia Pty Ltd remained committed to work programs to: lift production toward 25 Terajoules (TJ) a day by the end of 2012; boost gross 2P reserves by up to a further 200 PJ; mature 2P reserves to 1P; and deliver increased cash flow.
"Significantly, this updated reserves estimate still does not take into account all of the coal seams present, particularly any seams below 1,000 metres, or the key benefits of recent production drilling and work-overs, which will further enhance the reserves base," Dr Beeby said.
"We have analysed two wells drilled by one of the previous operators to a depth of 1,350 metres that achieved promising production rates and we will be implementing a work program during the coming year designed to demonstrate commercial flows from these extensive deeper seams."
Meridian's total Proved, Probable and Possible (3P) reserves also increased by 18 per cent or 80 PJ to 513 PJ due to technical adjustments in calculating estimated recoverable reserves and revisions of the drilling schedule that benefited from higher future gas prices.
As a result of NSAI's new report upgrading the Meridian SeamGas joint venture's reserves, WestSide's total net 3P reserves increased by 41 PJ to 472.6 PJ after including the 211 PJ(2) attributable to the Company's current 50 per cent interests in ATP 688P and ATP 769P. Reserves attributable from ATP 688P and ATP 769P will alter following settlement of Mitsui's (TYO:8031) farm-in.
For the complete WestSide announcement including reserve upgrade tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/68626-ASX-WCL-233596.pdf
ASX:WCL) is pleased to announce a 93 per cent increase in total Proved and Probable (2P) reserves attributable to the joint venture, based on results from the first stage of its reserves expansion program. Independent certifiers Netherland, Sewell & Associates Inc. (NSAI) now estimate Meridian SeamGas had 2P reserves as at 30 June 2011, totalling 433 Petajoules (PJ), or 221 PJ net to WestSide.
This represents a 209 PJ increase on the 224 PJ of gross 2P reserves NSAI attributed to the joint venture as at 30 June 2010, in its report announced on 19 April 2011 in WestSide's ASX Release: NSAI update boosts Meridian SeamGas reserves at time of purchase by 30%.
WestSide's Chief Executive Officer Dr Julie Beeby welcomed NSAI's new report confirming the availability of additional commercial reserves to provide a strong platform for growth over the coming year and beyond.
"We are very pleased to have exceeded our targeted 200 PJ increase in 2P reserves, providing us with a substantial reserves base to underpin long term gas supply agreements," Dr Beeby said.
The upgrade more than doubles Meridian SeamGas's gross uncontracted 2P reserves from 167 PJ to 376 PJ, significantly enhancing the joint venture's ability to participate in Queensland's emerging Liquefied Natural Gas export industry being developed at Gladstone.
Dr Beeby said NSAI had revised its estimate of Meridian SeamGas's total 1P reserves down by 15 PJ from 22 PJ to 7 PJ. This was because production from new wells and work-overs had not yet increased sufficiently to offset natural field decline, economic conditions and the allocation of increased operating costs.
Dr Beeby said WestSide and Joint Venture partner Mitsui E&P Australia Pty Ltd remained committed to work programs to: lift production toward 25 Terajoules (TJ) a day by the end of 2012; boost gross 2P reserves by up to a further 200 PJ; mature 2P reserves to 1P; and deliver increased cash flow.
"Significantly, this updated reserves estimate still does not take into account all of the coal seams present, particularly any seams below 1,000 metres, or the key benefits of recent production drilling and work-overs, which will further enhance the reserves base," Dr Beeby said.
"We have analysed two wells drilled by one of the previous operators to a depth of 1,350 metres that achieved promising production rates and we will be implementing a work program during the coming year designed to demonstrate commercial flows from these extensive deeper seams."
Meridian's total Proved, Probable and Possible (3P) reserves also increased by 18 per cent or 80 PJ to 513 PJ due to technical adjustments in calculating estimated recoverable reserves and revisions of the drilling schedule that benefited from higher future gas prices.
As a result of NSAI's new report upgrading the Meridian SeamGas joint venture's reserves, WestSide's total net 3P reserves increased by 41 PJ to 472.6 PJ after including the 211 PJ(2) attributable to the Company's current 50 per cent interests in ATP 688P and ATP 769P. Reserves attributable from ATP 688P and ATP 769P will alter following settlement of Mitsui's (
TYO:8031) farm-in.For the complete WestSide announcement including reserve upgrade tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/68626-ASX-WCL-233596.pdf
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About WestSide Corporation Limited
WestSide Corporation Limited (ASX:WCL) is an ASX-listed company with interests in coal seam gas (CSG) projects in Queensland.
WestSide operates the Meridian SeamGas CSG fields west of Gladstone in Queensland's Bowen Basin. The Meridian gas fields comprise a range of CSG assets including a petroleum lease, gas rights in mining leases and gas compression and pipeline infrastructure connected to Queensland's commercial gas network. WestSide holds a 51% interest in the fields with Mitsui E&P Australia Pty Ltd holding the remaining 49%.
Elsewhere in the Bowen Basin, WestSide is currently operating an exploration and appraisal program at the ATP 769P (Paranui) and ATP 688P (Tilbrook and Mount Saint Martin) sites. WestSide holds a 25.5% interest in the tenements with Mitsui E&P Australia Pty Ltd, which has a 24.5 % interest in each, and QGC, which holds the other 50% in each case.
WestSide also has a 51% operating interest in two Galilee Basin (Queensland) tenements (ATP 974P and ATP 978P) covering an area of over 14,480 sq km, with Mitsui E&P Australia Pty Ltd holding the remaining 49% in each.
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