WestSide updates Kalimantan coal seam gas project

The following is an excerpt from Westside Corporation Ltd. on Kalimantan coal seam gas (CSG) project, taken from the quarterly report ended June 30, 2008 released on Thursday.

International Developments

WestSide has agreements with Indonesia?s leading thermal coal producer, PT Bumi Resources, to jointly explore for CSG in Indonesia. Bumi subsidiaries PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia are together, by far, the largest thermal coal producers in Indonesia.

WestSide and Bumi Resources have now established a jointly-owned company, PT Seamgas Indonesia, which? is engaged in preparing a project definition study to identify CSG resources at the KPC mine site in Kalimantan.

Kaltim Prima Coal ? Kalimantan
(WestSide beneficial interest: 50%; Kaltim Prima Coal: 50%)

WestSide is currently working with KPC and US-based CSG consultants Advanced Resources International (ARI) to prepare a Project Definition Study (PDS) to assess the CSG potential of selected areas of the 91,000 hectare KPC coal mining permit site in Kalimantan. During the quarter ARI continued to analyse seismic and drilling data from previous mine site and petroleum exploration drilling.

In July, KPC commenced drilling the first of four deep core wells. Relevant data from this KPC-operated core program will be available to be incorporated into the PDS supplementing core data from previous wells which typically only access depths of up to 300m.

An assessment of the CSG potential of the area addressed by this study is expected late in 2008. (end of excerpt)