WestSide aims to build a sustainable and profitable energy business for the benefit of all stakeholders and has established four strategies to drive the company's growth.
These strategies are to:
- Demonstrate value of Meridian SeamGas
- Engage strong partners
- Develop a diversified portfolio; and
- Pursue sustainable development.
WestSide is focused on demonstrating the Company's reserves and production capability to be a long term supplier to major markets such as LNG which will be produced for export in Gladstone just 160km to the east of Meridian SeamGas.
WestSide launched a reserves expansion exploration program in November 2010 targeting a gross increase of 200 PJ of 2P reserves in 2011. The program exceeded target by increasing Meridian's gross 2P reserves 135% from 184 PJ to 433 PJ.
Significantly five coal seams were not included in this reserves certification, nor was gas in seams at depths greater than 1000 metres.
Work is also underway to develop the reserves potential of the Company's adjacent Paranui joint venture with QGC.
Increasing production will be pivotal to demonstrating WestSide’s capability as a reliable and sustainable gas supplier. WestSide launched a production drilling program in July 2010 to establish a series of new dual-lateral well sets, in conjunction with a well workover program, to lift field production toward 25 TJ a day by the end of calendar 2012.
The key to unlocking the value of Meridian SeamGas reserves and production has been the development of strong partnerships which provide downstream marketing potential.
WestSide’s purchase of its operating stake in Meridian SeamGas was supported by two CSG sector investment pioneers in New Hope Corporation and the Infrastructure Capital Group-managed Energy Infrastructure Trust which are both now major WestSide shareholders.
Mitsui, our Meridian SeamGas joint venture partner through subsidiary Mitsui E&P Australia, is a major Japanese trading house and participant in the North West Shelf supplying LNG to international energy markets.
WestSide's other joint venture partner in ATP 769P and ATP 688P is QGC - a BG Group business - which has major CSG tenement acreage in the Surat and Bowen basins and was the first of a number of Gladstone LNG project proponents to financially commit to development.
WestSide's predominant focus remains on Meridian SeamGas. However, the Company's Bowen Basin joint ventures with QGC in ATP 769P and ATP 688P provide medium term growth opportunities to build a broader reserves base.
Our Galilee Basin tenements ATP 974P and ATP 978P contain an estimated 21 trillion cubic feet of gas in place and Mitsui has exercised its option to farm-in to earn a 49% interest in both tenements where the focus is on grass roots exploration.
WestSide takes its coporate social responsibilities seriously and is committed to sustainable development in all that we do.
This means working openly and constructively with landholders, respecting and collaborating with Traditional Owners, engaging and participating with the communities in which we operate and implementing best practice environmental management.