WestSide Corporation Limited (ASX:WCL) is pleased to announce a significant upgrade to total Proved, Probable and Possible reserves (3P), after receiving a new reserves report on the Meridian SeamGas gas fields 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 asset base following completion of a large work program of exploration, production well drilling and production work overs in 2011.
As a result, WestSide's total net 3P reserves have increased 96 per cent or 356 PJ to 725 PJ while 2P reserves increased 17 per cent or 37 PJ to 258 PJ and 1P reserves rose 86 per cent or 3 PJ to 6.5 PJ. The reserves were certified in accordance with SPE PRMS guidelines.
WestSide's Chief Executive Officer Dr Julie Beeby welcomed the MHA report identifying the volume and potential value of the previously uncertified reserves.
MHA were previously engaged by WestSide as certifier of reserves within the Company's other tenements ATP 769P and ATP 688P and bring a broad perspective to their analysis by way of certification work conducted for other operators in the surrounding Meridian region.
Dr Beeby said the new MHA report provided corporate and regional consistency at Meridian and took into account all available information on all coal seams.
"This follows a review of old and new production and test data for all the seams across the region to support the upgrade," Dr Beeby said.
"The field development plan has also been advanced to account for exploitation of the reserves across a wider area to capture the full potential of additional future gas sales."
Dr Beeby said the 2P reserves from the main five coal seams between 200 metres and 800 metres within PL94 had been assessed and conservatively risked to arrive at the final numbers.
"There remains an upside to the current total reserve position, particularly to further increase the 2P reserves by conversion of the newly certified 3P reserves from the upper and lower seams," Dr Beeby said.
"The recognition of 3P reserves in the newly certified upper seams, as well as in the deeper seams to a depth cut-off to 1,350 metres, provides large upside for reserves maturation and growth."
The reserves increase confirms WestSide's position among Australia's top three listed junior Coal Seam Gas companies in terms of 2P and 3P reserves, whilst it has the largest gas production for an ASX-listed junior Coal Seam Gas producer.
For the complete WestSide Corporation announcement including Net Reserves tables, please view the following link: