WestSide pushes on with Dawson Seamgas
WESTSIDE Corporation says its plans to form a joint venture with Mitsui E&P for the acquisition of the Dawson Seamgas coal seam gas fields in the Bowen Basin have been unaffected by the pre-emption on adjoining tenements.
The company announced the JV agreement last week under which WestSide will pay Anglo Coal $26.8 million for its 51% stake in PL 94, which holds Dawson Seamgas.
In December, Westside signed a conditional agreement with Anglo for the acquisition of its stake in two permits, ATP 602P and ATP 564P, subject to pre-emptive rights.
In a statement this morning, WestSide said the pre-emption by Molopo Energy and Mitsui Moura Investment to acquire Anglo Coal’s interest in tenements ATP 602P, ATP 564P and a subleased portion of PL 94 would not have any impact on the Dawson Seamgas purchase.
WestSide chief executive officer Angus Karoll said the decision by Molopo and MII to exercise their pre-emptive rights over the assets had always been anticipated.
“The exercise of their pre-emptive rights over those assets has no bearing on WestSide’s agreements announced to the market on March 4, 2010, to acquire Anglo’s 51 per cent operating stake in the Dawson CSG fields and the associated infrastructure,” he said.
WestSide is working with its financial advisers to arrange financing for the Dawson Seamgas purchase and is expected to announce details of fundraising once they have been finalised.
The company will become operator of the project with a 51% interest while Mitsui will hold the remaining 49%.
Tuesday, 9 March 2010
PNN
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