Meridian SeamGas update - Gas Sales Rising
Perth, Aug 21, 2013 AEST (ABN Newswire) - As Operator of the Meridian SeamGas CSG gas field, WestSide Corporation Ltd (
ASX:WCL) is pleased to advise August gas sales have averaged 11.1 Terajoules a day (TJ/d) month to date - up 22 per cent from a low in May 2013.
Key Points
- Meridian SeamGas August gas sales averaging 11.1 TJ/day month to date - up 22 per cent from an operational low in May 2013
- Production from the Advanced Treatment Wells has partly recovered and increased water flows reflect enhanced connectivity which should deliver further production gains
- Strategy to recover production from new dual-lateral wells starting to deliver results with four regaining gas flow rates in excess of 500 Mscf/d.
WestSide's out-going Chief Executive Officer Dr Julie Beeby said Meridian's production to May 2012 had been adversely affected by slower than anticipated progress of the Advanced Treatment Trial and the cumulative impact of restrictions in a number of high producing dual-lateral wells.
"Since then significant progress has been made in both areas, reflecting the benefits of superior technical analysis, more effective well-management techniques, and bringing more wells on line," Dr Beeby said.
"The newer dual-lateral wells are now producing more sustainably. Three of these wells have regained gas flow rates in excess of 650,000 standard cubic feet a day (scf/d) and a fourth in excess of 500,000 scf/d, with more about to be modified to restore additional production."
All 10 Advanced Treatment wells are also now back on pump and five wells are producing gas at the same rate as they were when taken off line in November 2012 or better. Increased water flows reflect enhanced connectivity, which should deliver further production gains.
Dr Beeby said the completion and commissioning of two new booster compressors in the field would further enhance gas production by reducing back pressure on several key wells.
"With these continuing improvements in stable, sustainable production and the commissioned external validation of the Meridian Field Development Plan, WestSide should be well placed to enter into new Gas Supply Agreements to capture higher gas prices forecast from 2015," she said.
WestSide's net share of Meridian's total gas sales volume for FY2013 was up 7.2 per cent to 1,935 TJ from 1,805 TJ the previous year. This increase was achieved despite a significant fall in available third party gas, the loss of five wells to facilitate expansion of the adjacent Dawson mine, and the curtailment of production from the 10 wells taken off line in November 2012 in preparation for the Advanced Treatment Trial.
WestSide's net share from Meridian sales revenue for FY2013 of $7.3 million was also up 23 per cent on the previous year. Revenue growth exceeded the increase in sales volumes due to the receipt of compensation for the loss of production from wells impacted by the mine.
Contact
WestSide Corporation Limited
T: +61-7-3020-0900
F: +61-7-3020-0999
WWW: www.westsidecorporation.com
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