WestSide to Expand Alliance with Mitsui
WestSide has agreed to expand its alliance with Mitsui to potentially include the Company's coal seam gas (CSG) interests in ATP 688P in Queensland's northern Bowen Basin.
WestSide currently holds a 50 percent interest in ATP 688P which contains a number of promising CSG prospects including its Tilbrook, Mount Saint Martin and Bald Hill projects.
In March 2010 WestSide and Mitsui announced they would jointly acquire the Dawson CSG fields and Mitsui would have the option to acquire 49 percent of WestSide's existing interests in the neighbouring Paranui prospect (ATP 769P) and its new Galilee Basin tenements (ATP 974P and ATP 978P).
WestSide's CEO and Chairman Angus Karoll welcomed the prospect of an expanded alliance with MEPAU.
"Mitsui brings substantial experience and marketing power to WestSide's operations and the inclusion of ATP 688P was a logical step to standardize our relationship across all of WestSide's operations," he said.
WestSide has booked 76 Petajoules of certified Proved, Probable and Possible (3P) gas reserves at the Tilbrook pilot and believes the area could contain an additional 1,300 billion cubic feet of gas in place (net to WestSide).
The Company has just completed a seven-well exploration program in the area, including six wells to test the extent of the resource previously identified in the Moranbah Coal Measures in the Mount Saint Martin precinct.
A review of the results from this program is currently being undertaken while production testing continues at the Tilbrook pilot from both vertical and dual lateral appraisal wells.
Mitsui's option in relation to ATP 688P is on the same terms as the existing arrangements for ATP 769P and the Galilee Basin permits.
Mitsui has until October 31, 2010 to exercise its options, and the farm-ins are conditional on completion of the Dawson acquisition and WestSide's existing joint ventures in ATP 688P and ATP 769P waiving their existing pre-emptive rights over those areas.