WestSide Corporation Limited (ASX:WCL) NSAI Update Boosts Meridian SeamGas Reserves By 30%
Brisbane, April 19, 2011 AEST (ABN Newswire) - Meridian SeamGas operator WestSide Corporation Limited (
ASX:WCL) is pleased to announce a 30 per cent increase in total Proved, Probable and Possible (3P) reserves attributable to the joint venture when the Company assumed operatorship on 1 July last year.
Independent certifiers Netherland, Sewell & Associates Inc. (NSAI) now estimate Meridian SeamGas had 3P reserves as at 30 June 2010, totalling 433 Petajoules (PJ).
This represents a 30 per cent increase on the 334 PJ of 3P reserves originally attributed to the joint venture, based on WestSide's calculations. WestSide's calculations rely on estimates of reserves as of 31 December 2008 provided by Resource Investment Strategy Consultants P/L (RISC)1 before WestSide purchased its 51 per cent operating stake from Anglo Coal.
Proved and Probable (2P) reserves also rose 20 per cent, based on WestSide's calculations, to 224 PJ, primarily reflecting the reclassification of some Proved (1P) reserves due to a lack of development work in the 18 months prior to WestSide assuming operatorship.
NSAI has updated its estimate of Meridian SeamGas's total 1P reserves to 22.1 PJ. Based on WestSide's calculations Proved, Developed and Producing (PDP) reserves increased 47 per cent from 7.6 PJ to 11.2 PJ.
WestSide's Chief Executive Officer Dr Julie Beeby welcomed NSAI's updated reserves estimate as compelling evidence of the significant latent value the Company had initially identified within the Meridian SeamGas assets.
The reported 30 per cent increase, as determined by Westside, in total reserves reflects improvements in a range of economic factors, including revised pricing assumptions and per well operating costs.
Dr Beeby said WestSide and Joint Venture partner Mitsui E&P Australia Pty Ltd had, since July 1 2010, implemented work programs to start lifting production toward 25 Terajoules (TJ) a day by the end of 2012 and boost gross 2P reserves by up by a further 200 PJ by mid-2011.
"Significantly, this updated reserves estimate does not take into account exploration and production drilling work undertaken at Meridian SeamGas since WestSide assumed operatorship. Nor does it include an additional seven or so coal seams present above 1000 meters or any seams below that depth," Dr Beeby said.
"WestSide is targeting a reserve upgrade in mid-2011 and remains confident the work programs in place will achieve a rapid maturation of Meridian's certified reserves."
As a result of NSAI's updated estimate of the Meridian SeamGas joint venture's reserves, WestSide's total net 3P reserves have increased by 50 PJ to 431 PJ after including the 211 PJ(3) attributable to the Company's 50 per cent interests in ATP 688P and ATP 769P.
Meridian SeamGas updated reserves estimate
----------------------------------------------------------------------- 2008 RISC Reserves 2010 NSAI Reserves Change estimate (PJ)(1) Report (PJ)(2)-----------------------------------------------------------------------Reserve Meridian WestSide Meridian WestSide Category Gross Net 51% Gross Net 51% %-----------------------------------------------------------------------1P (Proved) 59.7 30.5 22.1 11.3 -52*-----------------------------------------------------------------------2P (Proved +Probable) 186.0 94.9 224.1 114.3 +20-----------------------------------------------------------------------3P (Proved +Probable +Possible) 334.3 170.5 432.61 220.6 +30-----------------------------------------------------------------------
1. Resource Investment Strategy Consultants P/L
2 Netherland, Sewell & Associates Inc * Includes an adjustment for production
For a Competent person's statement, please refer to the following link below:
http://www.abnnewswire.net/media/en/docs/231280.pdf
Contact
Julie Beeby
Chief Executive Officer
WestSide Corporation Limited
Tel: +61-7-3020-0900
Richard Owen
Investor & Community Relations Manager
WestSide Corporation Limited
Tel: +61-7-3020-0900
Mob: +61-412-869-937
Email: richard.owen@westsidecorporation.com
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