WESTSIDE’S $11.5M JV DEAL CLOSE

Written on the 7 April 2011

WESTSIDE’S $11.5M JV DEAL CLOSE

BRISBANE explorer WestSide is one step closer to sealing a deal with Mistui E&P Australia, where 49 per cent of WestSide’s 50 per cent joint venture interests in the Bowen Basin will be acquired by the Japanese subsidiary for $11.5 million.

Under the terms of the farm-in option, Mistui will pay a sum equivalent to 49 per cent of West Side’s exploration costs within the tenements.

This will give Mitsui a 24.5 per cent interest in those tenements, while WestSide’s interest in each tenement will reduce from 50 per cent to 25.5 per cent, subject to receipt of a waiver of pre-emptive rights from QGC – WestSide’s existing joint venture partner in those areas.

WestSide’s chief executive officer Dr Julie Beeby 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 (LNG) project developer QGC.

“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 Seam Gas joint venture’s LNG strategy,” she says.

Beeby says WestSide had $36.3 million in cash at December 31 2010 and remained well funded to undertake planned work programs within its tenements into calendar 2012.

“The additional funds from the farm-ins will provide WestSide with greater financial flexibility to accelerate reserves expansion exploration and production programs at Meridian SeamGas.”

Meanwhile, Queensland Treasurer Andrew Fraser has called for a fairer GST distribution methodology that promotes growth ahead of the Ministerial Council of Federal Financial Relations in Canberra today.

"The undeniable fact is that under current arrangements, Victorians and New South Welshmen benefit more from the resources sector than Queenslanders and Western Australians," says Fraser.

"What incentive does this offer to resource states to provide the billions of dollars in public investment necessary for a sustainable and lucrative mining industry?

"Currently mining revenue comprises 7 per cent of all revenue collected by all states, yet it constitutes 76 per cent of the GST funds that are distributed based on states' revenue raising capacity.

"The way the current methodology works, Queensland ends up keeping funds which amount to $228 per person in revenue from mining compared with $315 per person in New South Wales and $343 per person in Victoria.

"The Queensland Government takes its role as a donor state seriously - but we should be donating to our smaller states, not Victoria and New South Wales. The resource states have done the heavy lifting in supporting the nation's growth and our export success.

"It is in the national interest to encourage the resource states to continue to promote that growth not stunt it."


Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter