WestSide Drills First Well in Meridian Gas Field Phase 1 Program

WestSide Corporation announced Tuesday that 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.

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, WestSide stated.

The company 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,” WestSide’s Managing Director Mike Hughes said.

Hughes added that second phase drilling program will also be funded out of existing cash reserves.

WestSide has previously announced that it 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.

WestSide operates the Meridian SeamGas CSG gasfields in Queensland's Bowen Basin in joint venture with Mitsui E&P Australia. The company holds a 51 per cent interest with Mitsui E&P Australia holding the remaining 49 per cent.