WestSide said it has notified the Queensland Department of Natural Resources and Mines that it will relinquish its interests in ATP 974P and ATP 978P in Queensland’s Galilee Basin to focus on development of its producing Meridian SeamGas gas field.
“WestSide has a unique opportunity to benefit from demand growth within the changing East coast gas market through the expansion of the Meridian SeamGas gas field at Moura, west of Gladstone,” said WestSide’s Managing Director Mike Hughes.
“Further investment in the exploration of these challenging non-core Galilee Basin tenements is unlikely to deliver any immediate value to the company and would divert capital and resources away from our primary assets,” he said.
A process to sell or farm-out the tenement interests failed to identify any other alternative to relinquishment.
Importantly, the relinquishment will have no material impact on the results for the year ended 30 June 2014 as the carrying value of the tenements was written-off in the previous financial year.
Hughes said WestSide remained committed to ongoing exploration within the company’s Bowen Basin exploration tenements ATP 688P and ATP 769P.
LNG World News Staff, March 18, 2014; Image: WestSide