WestSide Corporation Limited (ASX:WCL) Operational Report And Expansion Of Bowen Basin Drilling Program

Brisbane, Nov 11, 2009 AEST (ABN Newswire) - WestSide Corporation Limited (ASX:WCL) has commenced an expanded drilling program in its Bowen Basin tenements which could see 16 new wells drilled by mid-2010. The program aims to build on WestSide's initial gas reserves, targeting:

- commercial flow rates from horizontal drilling at the Tilbrook pilot to support certification of 2P reserves;

- 2P reserves to underpin Petroleum Lease applications at Tilbrook and Paranui, with the ultimate goal of gas sales;

- accelerated appraisal of the Mount Saint Martin area, with up to six exploratory wells now planned following promising gas content data from the recent core well;

- additional gas resources in the deeper coals below 1,000m to the west of the Paranui pilot;

- commercial flow rates from new and re-worked wells at the Paranui pilot; and

- seismic acquisition to confirm geological structure.

In addition, the Tilbrook lateral well will be worked-over to remove accumulated coal fines.

PROJECTS
Bowen Basin
Paranui (ATP 769P)
(WestSide interest 50%)
Reserves: 135 PJ (3P) net to WestSide

The Paranui pilot comprises three appraisal wells (Paranui #5R, #6R and #8), two observer wells (Paranui #4 and #7) and one core well (Paranui #10). Production testing of the Paranui #5R and #8 wells continued during quarter.

Coal cores from the Paranui #10 core well drilled were desorbed and analysed, confi rming gas contents and gas quality. Final results for the isotherms and saturation levels are expected in late November.

WestSide will now drill a new core well to the west of the Paranui pilot to assess the gas resource at depths greater than the 1,000m depth currently addressed by the pilot. The ability to access gas from coals deeper than 1,000m could add significantly to WestSide's current 3P gas reserves.

Up to four new wells will be drilled to expand the existing pilot, while two existing pilot wells will be stimulated or cavitated to increase production rates.

The new wells and 12 km of seismic analysis and processing conducted in November will aim to confirm the geological structure and to convert some of the existing 3P gas reserves into 2P reserves to support an application for a Petroleum Lease in 2010.

Tilbrook, Mount Saint Martin and Bald Hill (ATP 688P)
(WestSide interest 50%) Reserves: 76 PJ (3P) net to WestSide

Tilbrook

The Tilbrook pilot is designed to appraise the Moranbah Coal Measures and is comprised of one dual-lateral horizontal appraisal well (Tilbrook #8), one vertical appraisal well (Tilbrook #7) and two observation wells (Tilbrook #4 and #6).

Production testing of the Tilbrook #8 dual-lateral well commenced in July. Within three months the well was performing ahead of expectation with gas flowing at 340,000* scfd and water at 400 barrels per day.

Production has been restricted in recent weeks due to a build-up of accumulated coal fines in one of the lateral wells. CSG wells normally encounter some fines build up during the initial production period which requires flushing and or cleaning. A standard remedial program to clear the well is being prepared for execution and a work over rig is being secured to complete the work in November.

These promising results have prompted the joint venturers to approve a further set of dual-lateral wells at Tilbrook (Tilbrook #9).

The first exploratory well, Tilbrook #9a was completed in November.

The horizontal wells will target commercial gas flow rates to underpin certification of 2P gas reserves at the pilot.

Tilbrook #8 is being prepared for cleaning to enhance production. An extended production test of the current appraisal wells, Tilbrook #8 and Tilbrook #7, is planned to continue for several months with production from Tilbrook #7 now increasing following de-watering from the lateral well.

WestSide is planning a radial drilling trial from one of the proposed wells to assess whether that technique could deliver commercial gas flows in comparison to conventional vertical or horizontal completions.

Seismic data was acquired in October over 5 km and will be analysed to confirm the coal structure for horizontal drilling and pilot expansion.

Bald Hill / Mount Saint Martin

Coal cores extracted in May / June to the north of Tilbrook at Mount Saint Martin and Bald Hill have been desorbed, delivering pleasing average gas contents. Final isotherm data will be available in November.

In response to this promising gas content and saturation data WestSide now plans to drill six new wells in the region to further define the gas resource. Four exploratory "chip" holes will be drilled to confirm the lateral extension of the target coal seams, while a further two core wells will appraise the gas contents over the wider area to extend the 3P reserves position.

The Mount Saint Martin #1 core well will be converted to a production well for gas flow-testing.

Seismic data was acquired over 5 km in October and will be analysed to confirm the geological structure for potential future horizontal drilling.

Galilee Basin
(ATP 974P and ATP 978P - pending approval)
(WestSide interest 100% - pending approval)

WestSide has secured a significant foothold in Queensland's coalrich Galilee Basin under an agreement to acquire two petroleum exploration tenements.

The Galilee Basin is the focus of increasing CSG exploration, with extensive coal seams throughout the basin believed to contain significant quantities of gas.

The Company will target CSG at the two pending exploration tenements, ATP 974P and ATP 978P, which cover a combined area of 14,480 km2 in the north-western part of the Galilee Basin.

WestSide believes the area could contain up to 21 trillion cubic feet of gas in place.

Following the issue of the permits and completion of the acquisition, WestSide will conduct geological, geophysical and other engineering studies at the two tenements as a precursor to exploratory drilling in 2010.

The acquisition is subject to WestSide shareholder approval at the forthcoming Annual General Meeting on 30 November.

New drilling rig

WestSide completed commissioning of a new Schramm TXD drilling rig with the drilling of its maiden well, Tilbrook #9a which was completed in early November. The Schramm TXD 180 rig is one of the largest dedicated CSG rigs in Australia.

The Schramm rig is expected to allow WestSide greater control over its programs and will be a valuable resource as the Company moves into its next phase of exploration and appraisal.

The rig is operated by international drilling contractor, Boart Longyear and will be available for use by other industry participants at commercial rates when the rig is not in use on WestSide's projects.

International

WestSide has agreements with Indonesia's leading thermal coal producer, PT Bumi Resources, to jointly explore for CSG in Indonesia. Bumi subsidiaries PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia are together the largest thermal coal producers in Indonesia.

WestSide is awaiting confirmation of its interests in recently-awarded CSG permits in Indonesia from Bumi Resources.

Contact

WestSide Corporation Ltd Angus Karoll Chairman and CEO TEL: +61-7-3020-0900