Steady Half Year Results as WestSide Set To Benefit from Higher Gas Prices
Brisbane, Mar 13, 2014 AEST (ABN Newswire) - WestSide Corporation Limited (
ASX:WCL) reported an operating loss for the six months to 31 December 2013 of $5.65 million, consistent with the $5.62 million loss reported for the previous corresponding period.
The result included an operating loss of $3.2 million attributable to the Meridian SeamGas business (including depreciation costs of $3.4 million), down from a loss of $3.5 million during the previous corresponding period.
Revenue from continuing operations for the period was $5.0 million (2012: $4.7m), including $4.0 million from Meridian SeamGas operations (2012: $4.0m) and $0.3 million in interest income (2012: $0.6m). Revenue of $0.7m has been recognised from the release of excess remedy provisions as a result of improved sales volumes in the period (2012: Nil).
Gas sales volumes increased by 3.8% to 1,060 Terrajoules of gas (net to WestSide) in comparison to the corresponding 2012 half year and by 15.8% from the immediately preceding six months.
Meridian has been consistently supplying close to 12 TJ/day of gas for the past six months despite no new wells having been drilled since mid 2012.
WestSide Managing Director, Mike Hughes said he was pleased that the Meridian SeamGas operations were now performing consistently in line with expectations, enabling the Company to confidently plan for an expansion of the field.
"WestSide is poised to benefit from a significant increase in revenues as expected new contract pricing takes effect from 2015," Mr Hughes said.
Plans are well advanced to commence drilling new production wells in the 2nd quarter of this year to increase production volumes to take advantage of the expected higher gas prices.
Contact
WestSide Corporation Ltd
Michael Hughes
Managing Director
T: +61-7-3020-0900
Damian Galvin
Chief Financial Officer
T: +61-7-3020-0900
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