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Drilling of pilot production well in Meridian SeamGas CSG fields begins

World Coal,

WestSide Corp. Ltd, the operator of the Meridian SeamGas CSG gas fields, has advised that drilling of the MER08V pilot production well in PL 94 near Moura in the Bowen basin, Australia, has commenced. The MER08V well is the fourth in an exploration programme designed to increase the Meridian SeamGas joint venture’s gross proved and probable (2P) reserves by up to 200 petajoules.

The well spudded on 22 January 2011 with EastCore’s EC1 rig drilling ahead toward a final depth of 550 m, targeting the Baralaba coal measures and Kaloola formation. The well is being air-drilled to test for productivity improvements.

WestSide is an ASX-listed company with interests in coal seam gas (CSG) projects in Queensland and Indonesia. It operates the Meridian SeamGas CSG fields the Bowen basin. The Meridian fields comprise a range of CSG assets including a petroleum lease, gas rights in mining leases and gas compression and pipeline infrastructure connected to Queensland’s commercial gas network.

WestSide holds a 51% interest in the fields with Mitsui E&P Australia Pty Ltd holding the remaining 49%.  Elsewhere in the Bowen basin, WestSide is currently operating an exploration and appraisal programme at the ATP 769P (Paranui) and ATP 688P (Tilbrook and Mount Saint Martin) sites. WestSide holds a 50% interest in each area with QGC holding the other 50% in each case.

WestSide also has a position in the Galilee basin, Queensland, with two new tenements (ATP 974P and ATP 978P) covering an area of over 14,000 km2. The company expects to commence exploration activities in these tenements later this financial year, and is also assessing the CSG potential of certain coal deposits in Indonesia through its relationship with PT Bumi Resources TBK, one of Indonesia’s largest coal miners.

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