Highlights:
• WestSide proposal to acquire up to 100% interest in producing Dawson Seamgas coal seam gas fields and up to 50% of the adjoining exploration tenements
• Potential to transform WestSide from an explorer to the second largest ASX listed dedicated coal seam gas producer in Queensland
• Gas reserves of up to 62 PJ (1P), 212 PJ (2P) and 514 PJ (3P) to be acquired
• Opportunity for significant value creation through facilitating the development of WestSide's adjacent Paranui coal seam gas project
WestSide has entered a conditional agreement to acquire Anglo American's stake in the Dawson Seamgas coal seam gas assets, and potentially, Mitsui Moura Investment Pty Ltd's interest in those assets.
The producing Dawson Seamgas fields comprise a range of CSG assets including a petroleum lease, gas rights in mining leases and gas pipeline infrastructure connecting to the main Queensland commercial network. These fields currently produce approximately 12 Terajoules of gas per day. The producing Dawson Seamgas field is currently owned by joint venture partners Anglo (51%) and Mitsui (49%). The adjoining CSG exploration tenements, ATP 602P and ATP 564P, including a sub-leased portion of PL94, are owned via two separate joint venture agreements, each comprising Anglo (25.5%), Mitsui (24.5%) and Molopo Australia Limited (50%).
The assets are located near Moura in central Queensland's Bowen Basin and are adjacent to WestSide's existing Paranui CSG project (ATP 769P). The assets are well positioned geographically, being the closest producing tenements to Gladstone and being adjacent to the planned pipeline route for the Surat to Gladstone gas pipeline.
The transaction presents WestSide a significant opportunity for further value creation through consolidation with the adjoining WestSide tenement. The Dawson Seamgas pipeline infrastructure has spare capacity to accommodate gas from both the Dawson Seamgas fields and from WestSide's adjacent and highly prospective Paranui field (ATP 769P).
Review all our latest Acquisitions and Mergers news