Meridian Drilling on Track and New Program Planned
Perth, July 1, 2014 AEST (ABN Newswire) - WestSide Corporation Limited (
ASX:WCL) (WBRIF:OTCMKTS) advises that the first new lateral production well in the current Phase 1 well program has been successfully drilled at the Meridian gas field and is expected to be on line by the end of July.
Key points:
- First new lateral production well has been drilled and is expected to be on-line by the end of July
- An additional program of new wells is being planned for later this year
- Gas sales stable for tenth consecutive month
Once connected and on-line the new lateral well is expected to take several months to ramp up to peak production.
WestSide's Managing Director Mike Hughes said the new well was successfully drilled laterally into the 'A' seam at a depth of 320 metres.
"An investment in quality steering technology provided clear imaging of the coal and has contributed to the success of the well," Mr Hughes said.
"Drilling operations are continuing and progressing on track, with the remaining Phase 1 drilling program planned to be completed by the end of August."
Gas sales volumes from the Meridian field have remained stable for ten consecutive months, with an average of 11.5 TJ/day sold in June.
Mr Hughes said planning was now well underway for a second phase drilling program later in 2014 to further build on the success to date of the first phase.
"The stability of the production from existing wells and the successful drilling of this lateral well and the two vertical wells earlier in June have given WestSide further confidence in the expansion of the Meridian gas field," he said.
"This second phase drilling program will also be funded out of existing cash reserves."
As previously announced, WestSide is assessing several debt financing proposals from potential financiers to fund the Company's 51 per cent share of future Meridian gas field development costs.
The Meridian Joint Venture has a binding 20-year Gas Sale Agreement to supply up to 65 TJ/day to the participants in the GLNG project at Gladstone. The GSA with GLNG provides WestSide with flexibility for a staged ramp up in supply volume from 2015.
Contact
WestSide Corporation Limited
T: +61-7-3020-0900
F: +61-7-3020-0999
WWW: www.westsidecorporation.com
| ||
|
