Shareholder Newsletter - June Quarterly Activities Report
Brisbane, Aug 9, 2012 AEST (ABN Newswire) - WestSide Corporation Limited (
ASX:WCL) are pleased to provide a Shareholder Newsletter - Quarterly Activities Report for the period ending 30 June 2012.
WestSide and Meridian SeamGas joint venture partner Mitsui E&P Australia Pty Ltd (Mitsui) remained focused during the quarter on increasing production through the progressive commissioning of the field's 10 new wells and work overs of existing wells.
As a result, Meridian SeamGas gross June quarter production, excluding fuel gas, was up 30.2% on the March quarter at 1,041,657 Gigajoules (531,245 GJ net to WestSide) and 46.9% on the same period last year. Consequently, gross sales revenue to WestSide of $1.95 million was up 42.5% on the previous quarter and 51.4% on the same period last year.
During the quarter, Meridian 27 joined Pretty Plains 10 to become the second of the new dual-lateral well sets to start steadily flowing gas at a choked rate of more than 1,000,000 standard cubic feet a day (scf/d).
Significantly, new wells drilled since WestSide assumed operatorship in July 2010, now account for approximately 35% of production.
The joint venturers are now preparing to drill three more new dual-lateral well-sets and an up-dip lateral well over coming months at Meridian, renovate 10 existing wells and refurbish and bring another eight old dormant wells back into production.
Results from a trial of new pumping technology at Meridian have also been sufficiently encouraging to support a decision to extend the trial to eight more Meridian wells and one well within the adjacent Paranui Pilot.
Plans are also in place for the installation of two booster compressors to reduce back pressure on some existing wells to increase production and longer term gas recovery.
Exploration and development activity within the Company's other Bowen Basin tenement interests will ramp up during the September quarter, subject to finalisation of joint venture approvals.
WestSide successfully completed a $25.4 million capital raising in April. This placed the Company in a strong financial position to fund its planned future production and exploration work programs, irrespective of the outcome of the indicative takeover proposal received in late January 2012 from Liquefied Natural Gas Limited (LNG Limited)(ASX:LNG).
The Board granted LNG Limited and associated parties non-exclusive access to conduct due diligence (which has been continuing) and advised that other interested parties may also be granted due-diligence access.
As previously noted, no set timeframe was established for completion of this process and there is no guarantee that a binding takeover offer will subsequently be made. WestSide will keep shareholders informed of any material developments.
The Company had $34.0 million in cash at 30 June 2012.
OPERATING HIGHLIGHTS
- June quarter production, excluding fuel gas, up 46.9% on the same period last year and 30.2% on the previous March quarter
- Sales volumes up 35.3% on the same period last year and 27.3% the previous March quarter
- Revenue to WestSide up 51.4% on the same period last year at $1.95 million and 42.5% on the previous March quarter
- Meridian 27 becomes the second of seven new dual-lateral wells to achieve a production rate of more than 1,000,000 scf/d
- Confirmed reliability of lateral well development technology to underpin future business growth
Subsequent to the end of the quarter:
- Commenced new production drilling program at Meridian SeamGas
- Signed agreements for new low-cost water treatment pilot program
- Signed agreement for installation of mobile screw compressor unit to lower costs and improve gas recovery
- Signed Memorandum of Understanding for supply and further development of gas lift technology
To view the complete WestSide Corporation quarterly report including all data, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-WCL-244234.pdf
Contact
WestSide Corporation Limited
T: +61-7-3020-0900
F: +61-7-3020-0999
WWW: www.westsidecorporation.com
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