Half Year Financial Statements
Sydney, Mar 8, 2012 AEST (ABN Newswire) - WestSide Corporation Limited's (
ASX:WCL) emphasis during 2012 will be to increase aggregate gas production from the Meridian SeamGas gas fields through the commissioning of recently-drilled wells, workovers of existing producing wells and new enhancement methods.
Importantly, all seven new dual-lateral wells are dewatering and producing early stage gas which has increased confidence in the Meridian SeamGas gas fields' capacity to deliver strong production growth.
Planning for the 2012 drilling and work over campaign is well underway with drilling expected to commence in the June quarter of 2012 after the wet season as well as the completion of the Meridian 34 and Meridian 35 up-dip lateral wells.
Plans are well advanced to trial gas lift water pump technology to overcome the fines issue delaying consistent production which has been a feature of the start-up phase.
In late December the Meridian SeamGas joint venturers executed a flexible Gas Swap Agreement with a leading market participant to provide access to gas (when available) to help meet contractual commitments to supply up to 25 TJ/d.
WestSide is yet to draw on any gas under the agreement and is working with the supplier to finalise logistical arrangements to secure the physical delivery of gas at the required delivery point. Under the swap agreement the same volume of gas purchased during 2012 must be sold back to the original supplier by the end of calendar 2015.
WestSide continued commercial negotiations with various parties for the potential long term supply of gas to new customers in the export and domestic markets and hopes to reach agreement with a new customer in coming months.
Exploration
Planning is underway for appraisal testing of pilots at Paranui within ATP 769P and Mount Saint Martin within ATP 688P. Plans are in place at Paranui to trial the new gas lift system once the initial results from the Meridian trials are known.
The Galilee Basin exploration drilling program was suspended in mid-December due to the onset of the wet season. An expanded drilling program for ATP 974P and ATP 978P will commence in the second quarter of 2012.
Corporate
As previously announced, WestSide has received an indicative, conditional, non-binding and confidential proposal from an interested party to acquire all of the shares in WestSide.
The Board is committed to maximising value for shareholders and has been working co-operatively with the interested party to progress the Proposal, including by offering the Potential Acquirer due diligence access, on a non-exclusive basis.
The Board intends to continue to assess the Indicative Proposal alongside other strategic options available to the Company.
The Company has announced a fully-underwritten non-renounceable entitlement offer to raise $25.4 million to fund ongoing activity across the Company's operations.
For the full Half Year Financial statement, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-WCL-240339.pdf
Contact
WestSide Corporation Limited
T: +61-7-3020-0900
F: +61-7-3020-0999
WWW: www.westsidecorporation.com
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