WestSide, Mitsui Sign CSG Farm-in for Galilee Basin

WestSide Corp. Ltd, the Brisbane-based coal seam gas (CSG) explorer and producer, has announced that it has signed farm-in agreements with Mitsui E&P Australia Pty. Ltd. for the Galilee Basin.

Mitsui will acquire a 49% interest in ATP 974P and ATP 978P in Queensland, Australia.  Mitsui had notified WestSide in November 2010 of its intention to exercise its option to farm in to the tenements, subject to negotiation of mutually agreeable farm-in and operating agreements.

WestSide as operator expects to start exploratory drilling this year on the tenements, which cover a combined 14,480 sq km of frontier coal seam gas territory with an estimated 21 tcf of gas in place. Mitsui is to pay $1.6 million (Aus.) to reimburse 49% of WestSide’s costs to date subject to ministerial approval of the change in tenement interests.

WestSide’s Chief Executive Officer Dr Julie Beeby welcomed Mitsui’s execution of the agreements to jointly explore the tenements in a prospective area acknowledged as Queensland’s last coal seam gas (CSG) frontier.

“The ownership structure of this new joint venture aligns with our existing Meridan SeamGas joint venture with Mitsui at Moura in Queensland’s Bowen Basin and extends this alliance into the Galilee,” Dr Beeby said.

Source: WestSide Corporation