OVERVIEW AND OUTLOOK
WestSide and Meridian SeamGas joint venture partner Mitsui E&P Australia Pty Ltd (Mitsui) remained focused during the quarter on increasing production through the progressive commissioning of new wells, drilling additional wells and working over existing wells.
Several of Meridian's new high performance wells needed to be taken off line for workovers during the quarter, but production has since been recovering toward their previous output rates and a return to full performance is expected.
Importantly, WestSide's net share of sales revenue from Meridian of $2.02 million, including processing fees and production compensation payments, was up 3.6% on the June quarter and 51% on the previous corresponding September quarter.
Work-overs were completed on eight of the field's old wells with the focus now shifting onto dormant wells with strong production histories, as the cost per GJ of production recovered from rejuvenated wells is expected to be lower than that from newly drilled wells.
This well work-over program will continue in the months ahead based on the application of a range of innovative treatment technologies used widely in North America to re-enter older wells and recover production.
The Schramm TXD rig was returned to service in July and has been deployed on the next phase of production drilling which will continue during the next few months.
During the September quarter the surface engineering and operations teams prepared for the arrival of two new booster compressors to efficiently increase production and reserves. Installation and commissioning of the first of these compressors will be undertaken during the current quarter, as will construction and commissioning of the new water treatment pilot. The second compressor will be installed in 2013.
Regarding exploration at Meridian, a rig is being engaged to drill a core well in a producing area of the field to measure gas content in coal seams being targeted as part of Meridian's reserves maturation program.
On 13 February 2012, WestSide announced that a potential acquirer, later identified as Liquefied Natural Gas Limited (ASX:LNG.AX - News), had been granted due diligence access on a non-exclusive basis to progress its indicative acquisition proposal.
WestSide has subsequently held discussions with LNG and its associated parties, and other parties which were invited by WestSide's advisers to consider potential change of control proposals involving the Company.
Some of these parties were also invited to undertake due diligence investigations, which have included access to an electronic dataroom, technical reviews and discussions with the WestSide management team. WestSide is now seeking firm proposals prior to the Company's Annual General Meeting on 22 November 2012.
The Company had $29.45 million in cash at 30 September 2012.
View the complete WestSide Corporation quarterly report at the link below:
About WestSide Corporation Limited:
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 13,280 sq km, with Mitsui E&P Australia Pty Ltd holding the remaining 49% in each.
WestSide Corporation Limited T: +61-7-3020-0900 F: +61-7-3020-0999 WWW: www.westsidecorporation.com
WestSide Corporation Limited
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