WestSide Corporation Limited has received a notice of intention from Mitsui E&P Australia Pty Ltd to exercise its options to acquire 49% of the Company's 50% interests in Bowen Basin tenements ATP 688P and ATP 769P.

Under the terms of the farm in option Mitsui will pay WestSide approximately AUD 11.5 million a sum equivalent to 49% of WestSide's exploration costs within the tenements to date.

Mitsui would then have a 24.5% interest in those tenements while WestSide's interest in each tenement would reduce from 50% to 25.5% subject to receipt of a waiver of pre-emptive rights from QGC WestSide's existing joint venture partner in those areas.

Dr Julie Beeby CEO of WestSide welcomed Mitsui's decision to expand the existing alliance to include the Company's other prospective Bowen Basin tenement interests via a three way exploration joint venture with Liquefied Natural Gas project developer, QGC.

Dr Beeby said that "Subject to receipt of QGC's waiver, these farm-ins will significantly strengthen WestSide's joint venture relationship with Mitsui and credentials as an effective, low-cost operator, and validate the Meridian SeamGas joint venture's LNG strategy.”

He added that "Significantly, ATP 769P is contiguous with the Meridian SeamGas gasfields and contains the Paranui gasfield where WestSide is currently operating an expanded production pilot project."

In addition to receipt of QGC's waiver, the farm-ins also remain subject to receipt of all relevant regulatory approvals, the execution of documentation joining Mitsui to the existing Joint Operating Agreements and receipt of payment.

(Sourced from ABN Newswire)