WestSide Corporation Limited (ASX:WCL) Second Well-Set Underway At Meridian SeamGas Production Drilling Program

Brisbane, Oct 13, 2010 AEST (ABN Newswire) - WestSide Corporation Limited (ASX:WCL) and Meridian SeamGas joint venture partner Mitsui E&P Australia Pty Ltd (MEPAU) have started drilling the second of a series of well-sets under the A$14.5 million first stage of a work program to lift field production and increase 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.

The Schramm TXD 180 rig was mobilised late last week after completing Pretty Plains #5 and spudded the Pretty Plains #8 vertical well on Tuesday, 12 October 2010.

Chief Executive Officer Dr Julie Beeby said WestSide, which has a 51 per cent operating stake in Meridian SeamGas, planned to expedite work on the next two well-sets using a multi-rig strategy.

"A separate contractor is to be engaged to drill the radius bends for the Pretty Plains #8 lateral wells to accelerate completion of this work sequentially and improve operating efficiency," Dr Beeby said.

Each of the new production wells involves drilling a vertical component to a total depth of approximately 600m and lateral holes targeting the Baralaba Coal Measures at separate depths.

Dr Beeby said the well locations and configurations aimed to maximise coal exposure and increase well productivity per dollar spent on the program.

"A specialised work-over rig is scheduled to arrive later this month to complete the new Pretty Plains #5 well set for production with a view to ramping up production as quickly as possible on completion of water management and pipe works," Dr Beeby said.

"We were encouraged by good gas indications flowing to surface while the horizontal sections of this well were being drilled and are therefore confident the production potential can be achieved."

WestSide has also started upgrading key roads and drill pads to provide all-weather access.

"We plan to continue drilling during the wet season at Meridian and step up our work-over program targeting more wells to enhance reserves, production and reliability," Dr Beeby said.

"The unseasonal wet weather we have been experiencing has curtailed anticipated progress on our well work-over program and hampered field maintenance activities as well, resulting in a temporary drop in production during the past month."
Dr Beeby said WestSide remained focused on steadily increasing production while undertaking additional studies and basin modelling work with a view to further field expansion and increasing certified reserves. Planning is continuing for stage two of the drilling campaign.

The Meridian SeamGas CSG fields have certified 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).

Meridian's inclusion has increased WestSide's certified 3P reserves from 211 Pj 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 attached map (see link at the bottom of the 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.

For the complete WestSide announcement including Map, please view the following link:

http://www.abnnewswire.net/media/en/docs/63937-ASX-WCL-224866.pdf

Contact

Dr Julie Beeby Chief Executive Officer WestSide Corporation Ltd Ph: +61-7-3020-0900 www.westsidecorporation.com