WestSide Corporation Limited (ASX:WCL) Meridian SeamGas Drilling Underway With A$14.5m Program
Brisbane, Aug 25, 2010 AEST (ABN Newswire) - WestSide Corporation Limited (
ASX:WCL) and Meridian SeamGas joint venture partner Mitsui E&P Australia Pty Ltd (MEPAU) have begun rolling out the A$14.5 million first stage of a field development program to lift production and expand reserves.
The joint venture took control of the Meridian SeamGas CSG fields (formerly the Dawson Seamgas fields) in Queensland's Bowen Basin on July 1 2010, from Anglo American (LON:AAL) (PINK:AAUKY) and expects to complete this initial drilling and work-over program by the end the calendar year.
Representatives from WestSide, which has a 51 per cent operating stake, and MEPAU met recently to finalise the drilling and maintenance schedule and budget for the next two quarters.
Work is now well advanced on Pretty Plains #5 - the first of a series of dual-lateral production well sets to boost CSG output - while a work-over program has already restored field output to January 2010 levels.
WestSide Chairman and Acting CEO Mr Angus Karoll said the response to the workover program equated to a 6.3 per cent increase in field production since WestSide took control.
Mr Karoll said the vertical component of Pretty Plains #5, which spudded on July 24, and the first of the lateral wells had been completed, with work on the second lateral well scheduled to commence later this week.
"Our goal is to steadily increase production while undertaking further seismic and basin modelling work with a view to further field expansion and increasing certified reserves," Mr Karoll said.
Planning is also underway for the second stage of the drilling campaign initially targeting a further six vertical production wells for completion further to the south of Pretty Plains by the end of FY2011.
Mr Karoll said the lift in field performance to date had been encouraging and WestSide was looking forward to receiving its first monthly cash flow payment for gas sales which had risen to approximately 11.4 Tj/d.
"We have been impressed with the field production reliability which has increased our level of confidence in the joint venture's strategy," Mr Karoll said.
Each of the new production wells involves drilling a vertical component to a total depth of approximately 1300m and two diverging lateral holes targeting the Baralaba Coal Measures at separate depths.
The joint venture also has plans to consider the use of a trilateral configuration to target another of the gas-bearing seams within the structure.
WestSide's joint venture with MEPAU has provided an opportunity to access international LNG markets through Mitsui's global LNG networks. The joint venture will also consider supplying new domestic gas contracts from 2015-16 once the current supply contracts in place expire.
The Company is preparing to welcome new CEO Dr Julie Beeby who will assume responsibility for leading WestSide though the next exciting stage of its development and growth from Monday August 30, 2010.
The Meridian SeamGas CSG fields have certified(1) Proved (1P) gas reserves of 30 petajoules (Pj), 94 Pj of Proved and Probable (2P) reserves and 170 Pj of Proved, Probable and Possible (3P) reserves (net to WestSide).
This increases WestSide's certified 3P reserves from 211 Pj(2) to 381 Pj - including 135 Pj at Paranui in ATP 769P and 76 Pj at Tilbrook in ATP 688P.
The Meridian fields depicted in the map (refer to link at bottom of release) 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.
To view the Meridian fields map, please refer to the following link below:
http://www.abnnewswire.net/media/en/docs/63587-ASX-WCL-223171.pdf
Contact
Angus Karoll
Chairman and CEO
WestSide Corporation Ltd
Tel: +61-7-3020-0900
www.westsidecorporation.com
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