WestSide Corporation Ltd (ASX code: WCL) will exit from two Queensland coal seam gas (CSG) tenements as it sharpens its focus on the next stage of appraisal at its Paranui and Tilbrook CSG pilots with joint venturer, Sunshine Gas Ltd.
Executive Chairman Michael Cavell said WestSide’s resources would be best directed towards proving gas reserves within the Company’s two more-advanced Queensland tenements ATP769P (Paranui) and ATP688P (Tilbrook) and progressing its Indonesian projects.
“WestSide has advised Sunshine Gas of the Board’s decision not to complete its farm-in obligations in the two other exploration tenements, ATP693P (Cullin) and ATP811P (Foxleigh),” Mr Cavell said.
“The decision followed an assessment which concluded the results of work performed to date in these two areas did not satisfy the Company’s internal benchmarks,” he said.
To confirm its 50 per cent interests in the two tenements WestSide was to spend an aggregate of $2 million by November 2008. Acquisition and exploration costs of approximately $1.04 million incurred to date on the areas will be written down.
WestSide recently notified Sunshine Gas that it has completed its earning obligations in the ATP769P (Paranui) and ATP688P (Tilbrook) tenements, in which it holds 50 per cent interests. WestSide and Sunshine Gas are currently conducting production testing at the pilots with an aim of proving gas reserves and are in the process of finalising plans for an expansion of appraisal activities in these areas for the coming 12 months.
WestSide remains well-funded, with cash reserves of over $16 million available to fund ongoing activities.
