Australia: Westside Revenue Down

Westside of Australia today said that its revenue from continuing operations for the six months to 31 December 2011, was $3.9 million (2010: $6.4m), including $2.6 million from Meridian SeamGas (2010: $2.9m) and $0.7 million from drilling rig operations (2010: $2.1m).

WestSide’s operating loss after income tax for the period was $1.7 million (2010: $3.5m). This included an operating loss of $2.5 million attributable to the Meridian SeamGas business (2010: $2.0m).

Production rates continued to recover from the effects of wet weather experienced early in 2011 during the September quarter, aided by the results of well work-overs and a contribution from new wells.

However, production was adversely impacted during the December quarter by natural field decline, necessary well work overs and a planned shutdown of Meridian’s main Hillview dehydration unit in November for essential five-year compliance testing work.

The result included a one-off $3.7 million profit from the disposal of WestSide’s Indonesian joint venture interests.

HIGHLIGHTS

– Finalised joint venture agreements with Mitsui E&P Australia and received payment of $13.4 million for the sale of 49% of WestSide’s Galilee Basin and Bowen Basin tenement interests

– Received upgraded reserves estimates, equating to a 96% increase in net 3P gas reserves to 725PJ, a 17% rise in Meridian Seamgas’ net 2P reserves to 258 PJ and an 86% rise in the field’s 1P gas reserves

– Executed Gas Swap Agreement to provide access to gas to assist in meeting Meridian’s commitments to supply up to 25 TJ/day

– Delivered net 819,034 GJ of gas for the six months to 31 December 2011 (2010 : 958,223 GJ), generating gross revenues of $2.61 million

– Recorded a net gain of $3.7 million upon the sale of the Group’s Indonesian interests

– Completed drilling and connecting seven new dual-lateral well sets for dewatering and gas production

– Drilled two of three planned up-dip lateral wells and completed and placed the first on pump

– Three of the seven new dual-lateral wells achieved production rates in excess of 600,000 scf/day each

– Continued Meridian SeamGas production enhancement/work-over programs Executed Gangulu Cultural Heritage and Management Agreement covering key areas of Meridian’s operations

– Granted new Environmental Authority for Meridian SeamGas Petroleum Lease PL 94

– Commenced the Galilee Basin exploration drilling program with drilling started on the second well

– Continued commercial negotiations for potential long term supply of gas to new customers

– Completed successful open hole production test at Paranui flowing at 340,000 scf/day.

[mappress]

LNG World News Staff, March 8, 2012