WestSide Corporation Limited (ASX:WCL) Quarterly Report For The Period Ended 31 December 2009

Brisbane, Jan 29, 2010 AEST (ABN Newswire) - WestSide Corporation Limited (ASX:WCL) is pleased to provide the Quarterly Activities Report for the period ended 31 December 2009.

WestSide Corporation 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, with the current phase targeting 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 and the identification of additional prospective coal seams.

WestSide has significantly increased the CSG reserves targets for the Company's 2009 / 2010 program after recent results from its drilling and appraisal works provided confidence for the expanded campaign.

The Company is now targeting up to 111 Petajoules (PJ) of Proved and Probable (2P) gas reserves and up to 1,710 PJ of Proved, Probable and Possible (3P) reserves in the Bowen and Galilee Basins, building on previously certified gas reserves.

Target gas reserves (2010)--------------------------------------------                   2P            3P                  2010     2010                 Target   Target  Current(1)--------------------------------------------ATP 769P           18       107      135ATP 688P           93       355       76Galilee Basin      -      1,248       ---------------------------------------------Total             111     1,710      211--------------------------------------------

In March, once the relevant pre-emptive and participation rights are settled, WestSide expects to be able to confirm the extent of the interest in the Dawson Seamgas gas fields, ATP 564P and ATP 602P, which it will acquire. The acquisition has the potential to transform WestSide into a significant gas producer within six months.

WestSide expects to complete the purchase of two new Galilee Basin exploration tenements, ATP 974P and ATP 978P, in coming months. Drilling is expected to commence in the new tenements late in 2010.

New drilling rig commissioned

WestSide completed commissioning of a new Schramm TXD drilling rig with the drilling of the Tilbrook #9a well commencing in October. 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.

Proposed acquisition of Dawson Seamgas gas fields

WestSide has entered a conditional agreement to acquire Anglo American's (Anglo) stake in the Dawson Seamgas CSG assets, and potentially, Mitsui Moura Investment Pty Ltd's (Mitsui) interest in those assets. The proposed acquisition would result in WestSide acquiring a stake of up to 100% in the producing Dawson Seamgas CSG fields (PL 94 and ML gas rights) and up to 50% in two adjoining tenements (ATP 602P and ATP 564P/ PL94 North sublease). The ultimate interests acquired will be determined following resolution of pre-emptive and other rights of participation held by the existing joint venture partners.

The producing Dawson Seamgas fields comprise a range of CSG assets including a petroleum lease, gas rights in mining leases and gas pipeline infrastructure connecting to the main Queensland commercial network. These fields currently produce approximately 12 Terajoules of gas per day.

The assets are located near Moura in central Queensland's Bowen Basin and are adjacent to WestSide's existing Paranui CSG project (ATP 769P). The fields are the closest producing tenements to Gladstone and are adjacent to the planned pipeline route for the Surat to Gladstone gas pipeline.

The transaction presents WestSide with a significant opportunity for further value creation through consolidation with the adjoining Paranui prospect. The Dawson Seamgas pipeline infrastructure has spare capacity to accommodate gas from both the Dawson Seamgas fields and from Paranui.

WestSide proposes to invest in the field to increase current production rates to meet contracted rates. WestSide also believes there are significant resources yet to be certified which have the potential to increase the 2P and 3P reserves and also to convert 3P into 2P. Co-development agreements with the coal mining lease holders (Anglo and Mitsui) will enable WestSide to extract and sell CSG from within the mining and petroleum areas. Compensation is payable to WestSide if coal mining activities impact on WestSide's gas activities.

If successful, this transaction has the potential to transform WestSide from an explorer-only business to a significant CSG producer, with sales contracts in place and a portfolio of exploration projects in various stages of development.

WestSide's total acquisition cost is expected to be between A$55 million and A$80 million, depending on the ultimate ownership interest acquired, with a proportional reduction of WestSide's investment if WestSide seeks to work with a joint venture partner.

The transaction is subject to obtaining the necessary financing, which will be finalised once there is further certainty over the size of the ultimate interests to be acquired.

Further clarity around the transaction size, structure and WestSide's financial commitment will be provided following resolution of the various pre-emptive rights.

The resolution of all the various pre-emptive rights may not be finalised until early April 2010.

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.

(1)The certified reserves figures used in this report are based on information compiled by John P. Seidle, Ph.D., P.E.,Vice President of MHA Petroleum Consultants LLC. Mr Seidle is not an employee of WestSide Corporation Ltd and consents to the inclusion in this report of these reserves figures in the form and context in which they appear.

For the complete WestSide Corporation Quarterly Report for the period ended 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62175-ASX-WCL-217795.pdf

Contact

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