GLNG is set to begin receiving gas from Meridian in 2016.
The company has achieved relatively stable production from the Meridian field over the past eight months, with the 1 million gigajoules of gross gas produced over the March quarter, representing a 3% drop compared to the previous December quarter.
Workover improvements and better production controls have been instrumental in driving well performance, according to the producer.
WestSide ended the quarter with $23 million cash, a sufficient amount to drive its 2014 work program as well as modest growth, however, the company is looking into corporate debt or project finance to fund a more substantial growth program.
Average sales volumes came in at 11.5 Terajoules per day, compared with 11.6TJ/d for the December quarter, with WestSide’s net share of sales revenue from Meridian coming to $2 million.
The company estimates that its GLNG gas sales agreement to deliver a maximum of 65TJ/d could generate more than $60 million of revenue each year net to WestSide at a conservative rate of 40TJ/d.
A rigorous search for the appropriate contractor to complete the future Meridian drilling program is currently being conducted, with phase 1 of that program to begin this month.
Phase 1 will incorporate extensive recommended improvements in drilling procedures and practices to optimise drilling and production performance.
The company has not undertaken any significant exploration work in its Bowen Basin tenements during the quarter and relinquished its Galilee Basin permits in April to concentrate on its Meridian project.
On an executive level, the company’s board has continued to recommend WestSide’s shareholders take no action in relation to a renewed offer from Chinese company Landbridge Group.
Landbridge’s first offer for the company, made public on March 10, involved the acquisition of all of WestSide’s ordinary shares at 36c per share, an offer that WestSide rejected.
The new bid has upped the stakes to 40c per share, made through Landbridge’s Australian subsidiary, and follows hot on the heels of a mass share buy-up by the company, giving it a 19.99% interest in WestSide.
WestSide has extended a share trading closed period for key management personnel and employees until it can issue a target statement on the offer.
