WestSide Corporation Limited (ASX:WCL) is pleased to announce a significant upgrade to its certified reserves after receiving a new reserves report on the Meridian SeamGas CSG gas field near Moura in Queensland's Bowen Basin.
The report was commissioned by WestSide from independent reserve certifiers MHA Petroleum Consultants LLC, as part of a regular review of the Company's assets with particular focus on Meridian SeamGas production results for calendar 2012.
WestSide's total net 1P reserves were up 40.7 PJ to 47.2 PJ - a more than six-fold increase from 6.5 PJ - while 2P reserves rose 34.5 per cent or 89 PJ from 258 PJ to 347 PJ and 3P reserves increased 22 per cent or 160 PJ from 725 PJ to 885 PJ.
The reserves were certified in accordance with SPE PRMS guidelines.
WestSide's Chief Executive Officer Dr Julie Beeby welcomed MHA's report which she said acknowledged the Company's achievements as Operator by bringing new wells into production at Meridian and extending the life and productivity of existing wells within the field.
"This reserves upgrade validates the effectiveness of WestSide's operating practices and particularly our success in rejuvenating older wells to improve Estimated Ultimate Recovery (EUR) per well, which in turn has delivered a substantial uplift in Meridian's 2P reserves."
"Importantly, the extension of productive well life enhances projected returns from Meridian's ongoing field development due to the anticipated future impact of higher gas prices."
Dr Beeby said there still remained significant upside to the current total reserve position, particularly to further increase 2P reserves through the conversion of 3P reserves from both upper seams and seams below 800 metres.
"The recognition of 3P reserves in the upper seams, as well as in the deeper seams to a depth cut-off to 1,350 metres, provides large upside for further reserves maturation and growth in the years ahead."
The reserves increase confirms WestSide's position as one of Australia's leading listed junior Coal Seam Gas companies with significant uncontracted 2P reserves just 160km west of Gladstone.
View the WestSide Corporation announcement at the link below: