 |
Brisbane, Dec 23, 2011 (ABN Newswire) - WestSide Corporation Limited (
ASX:WCL) and Meridian SeamGas joint venture partner Mitsui E&P Australia Pty Ltd (Mitsui) have today executed an agreement to fast-track access to gas to aid fulfilment of existing contracts and reduce payments to remedy shortfalls.
The agreement with a leading market participant provides the Meridian SeamGas joint venturers with flexibility on borrowed gas volumes during 2012 to complement increasing production.
Under the agreement, WestSide will purchase gas to help meet demand from existing customers supplied by Meridian SeamGas. WestSide will subsequently sell the same volume of gas back to the supplier by the end of 2015.
WestSide Chief Executive Officer Dr Julie Beeby said the agreement enabled the Meridian SeamGas joint venturers to fast track access to gas to help meet two sales contracts to supply an aggregate total of 25 Terajoules a day (TJ/d).
"By bringing forward this capacity to meet our gas sales commitments, WestSide is also positioned to reduce the payment of remedies factored into the price the Company originally paid for its 51 per cent interest in Meridian SeamGas," Dr Beeby said.
Under the inherited production rate, Meridian SeamGas has been unable to supply its gas sales agreements in full. A balance sheet provision in Westside's 2011 accounts covering this liability was based on the conservative assumption that the shortfall would remain for the life of the contract.
Dr Beeby said completion of the gas swap at the end of 2015 was timed to match the potential commencement of many opportunities for gas sales to domestic customers and Liquefied Natural Gas (LNG) export projects being developed at Gladstone in Queensland.
"This flexible gas swap arrangement will help Meridian SeamGas ramp up production to match requirements to secure larger volume, long-term gas supply contracts," Dr Beeby said.
ASX:WCL) and Meridian SeamGas joint venture partner Mitsui E&P Australia Pty Ltd (Mitsui) have today executed an agreement to fast-track access to gas to aid fulfilment of existing contracts and reduce payments to remedy shortfalls.The agreement with a leading market participant provides the Meridian SeamGas joint venturers with flexibility on borrowed gas volumes during 2012 to complement increasing production.
Under the agreement, WestSide will purchase gas to help meet demand from existing customers supplied by Meridian SeamGas. WestSide will subsequently sell the same volume of gas back to the supplier by the end of 2015.
WestSide Chief Executive Officer Dr Julie Beeby said the agreement enabled the Meridian SeamGas joint venturers to fast track access to gas to help meet two sales contracts to supply an aggregate total of 25 Terajoules a day (TJ/d).
"By bringing forward this capacity to meet our gas sales commitments, WestSide is also positioned to reduce the payment of remedies factored into the price the Company originally paid for its 51 per cent interest in Meridian SeamGas," Dr Beeby said.
Under the inherited production rate, Meridian SeamGas has been unable to supply its gas sales agreements in full. A balance sheet provision in Westside's 2011 accounts covering this liability was based on the conservative assumption that the shortfall would remain for the life of the contract.
Dr Beeby said completion of the gas swap at the end of 2015 was timed to match the potential commencement of many opportunities for gas sales to domestic customers and Liquefied Natural Gas (LNG) export projects being developed at Gladstone in Queensland.
"This flexible gas swap arrangement will help Meridian SeamGas ramp up production to match requirements to secure larger volume, long-term gas supply contracts," Dr Beeby said.
| Tweet |
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.
|
||
|
 |
Related Companies |
>>>       WestSide Corporation Limited |
| |
Related Industry Topics: |
Gas & Oil | Energy General | Financial General | Mining | Coal Seam Gas | |
| |
This Page Viewed: (Last 7 Days: 110) (Last 30 Days: 1010) (Since Published: 8300) |
Events & Exhibitions
|
Site Search
| ENGLISH All Languages |
Upcoming WebCasts
 | Mr Mark Paton CEO Cue Energy Resources Tuesday, June 12, 2012 |
 | Mr Alan Hopkins CEO Pan Asia Corporation Tuesday, June 12, 2012 |
 | Mr Barry Dawes Martin Place Securities Tuesday, June 12, 2012 |
 | Dr Andrea Grant CEO Living Cell Technologies Monday, July 02, 2012 |
Companies in the News
Mobile Video TV
|
||
|
||
){kind=link}