WestSide Corporation Limited (ASX:WCL) New Meridian SeamGas Well Becomes a Top Producer

Sydney, Sep 28, 2011 AEST (ABN Newswire) - As Operator of the Meridian SeamGas CSG gas fields WestSide Corporation Limited (ASX:WCL) is pleased to advise that one of the joint venture's seven new dual-lateral production well sets has become a top producer.

WestSide's Chief Executive Officer Dr Julie Beeby said the new well-sets were located at Pretty Plains within the Co-development area on the Dawson Coal Mine's Mining Lease near Moura in Queensland's Bowen Basin.

"The flow rate from Pretty Plains 2 has risen to the point where it has become one of Meridian SeamGas's best performing wells by producing up to 680,000 standard cubic feet a day from just two of the multiple seams available for future production," Dr Beeby said.

"We have been greatly encouraged by the performance of this well which shows that careful commissioning of these newly drilled production wells at Meridian SeamGas is paying off."

The well-sets have not all started delivering significant gas volumes yet due to a planned dewatering phase and prevalence of coal fines on start-up, although the time being taken to bring them into production is comparable to the previous operator's experience.

Dr Beeby said the seven new wells were expected to produce an aggregate of 6-7 Terajoules a day (TJ/d) as Meridian SeamGas advanced plans to increase production toward 25 TJ/d by the end of calendar 2012.

"Pretty Plains 2 remains controlled via water and gas pressure at present, so a peak significantly higher than the current production rate is anticipated as the well is gradually allowed to flow freely over the next few months," Dr Beeby said.

"The other new production wells are progressing in a similar manner and we are confident of achieving increased production in the coming quarter.

"We believe we will be able to bring wells into production more quickly in future and more importantly, replicate the strategy successfully as we continue to develop the gas fields," Dr Beeby said.

Work-overs on 22 wells have arrested field decline and delivered approximately 2.7 TJ/d of production since July 1 2010.

A further 19 wells have been targeted for production enhancement, including a blind lateral well which is being tested to demonstrate reliable production from lateral sections without the need for connection to a vertical well, which is a first for the region.

The production success follows WestSide's achievement in July 2011 of a targeted reserves upgrade which more than doubled Meridian SeamGas's gross proved and probable (2P) reserves to 433 Petajoules.

Meridian SeamGas now has sufficient uncontracted 2P reserves to supply up to 60 TJ/d under contract for almost 20 years and is pursuing Gas Sales Agreements with domestic users and export LNG projects.

Contact

WestSide Corporation Ltd Dr Julie Beeby Chief Executive Officer Tel: +61-7-3020-0900 Investors and Media Richard Owen Investor & Community Relations Manager Tel: +61-7-3020-0900 Mob: +61-412-869-937 Email: richard.owen@westsidecorporation.com