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ANNUAL REPORT 2009-2010 - WestSide Corporation

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ANNUAL REPORT 2009-2010 - WestSide Corporation Powered By Docstoc
					ANNUAL
REPORT
2009-2010
WESTSIDE CORPORATION LIMITED




                               WestSide Corporation Limited Annual Report 2010   Page 1
   INDEX




The Schramm rig was drilling at Meridian SeamGas within weeks of WestSide assuming control




Company Profile                                             2         Annual Financial Report                   24
Project Portfolio, Report Card,                             3             Directors’ Report                    25
Goals, Highlights and Reserves                                            Auditor’s Independence Declaration   37
Chairman’s Report                                          5              Consolidated Statement of
Operational Report                                         9              Comprehensive Income                 38
     Meridian SeamGas CSG Fields                           12             Consolidated Balance Sheet           39
     ATP 769P – Paranui                                    14             Statement of Changes in Equity       40
     ATP 688P – Tilbrook, Mount Saint                      15             Cash Flow Statement                  41
     Martin & Bald Hill                                                   Notes to the Financial Statements    42
     Galilee Basin                                         16             Directors’ Declaration               72
     Indonesia                                             16             Audit Report                         73
Finance Report                                             17             Shareholder Information              75
Directors                                                  19             Corporate Governance Statement       77
Management                                                 21        Glossary                                  79
Community Standards                                        22        Corporate Directory                       80




Page 1   WestSide Corporation Limited Annual Report 2010
COMPANY PROFILE
WestSide Corporation Limited is an ASX-listed company      and Tilbrook and the Company is working to prove up
(ASX code: WCL) with interests in coal seam gas (CSG)      further reserves within surrounding tenement acreage.
projects in Queensland and Indonesia. The Company is
                                                           WestSide is focused on executing its strategy of
a significant gas producer and participant in Australia’s
                                                           commercialising known gas assets, identifying and
east coast energy market with established reserves and
                                                           proving up new reserves and seeking new CSG
production under contract.
                                                           opportunities.
WestSide operates the Meridian SeamGas CSG fields
                                                           The Company is financially well positioned with strong
west of Gladstone in Queensland’s Bowen Basin in joint
                                                           international partners, quality assets and experienced
venture with major Japanese trading house Mitsui.
                                                           leadership to take advantage of the potential value
These fields, in which WestSide has a 51 per cent
                                                           of its resources, from marketing opportunities to
interest, produce approximately 3.5 PJ of gas a year
                                                           downstream industrial applications and access to
and the Company is moving aggressively to expand
                                                           Australia’s domestic east coast gas market and
production, sales and certified reserves.
                                                           Queensland’s emerging export LNG industry.
Elsewhere in the Bowen Basin, WestSide has established
certified CSG reserves for two of its projects, Paranui




                                                                            WestSide Corporation Limited Annual Report 2010   Page 2
                                                           Gas is flowing from the Meridian SeamGas fields into the Moura central compressor station




Project Portfolio                                                              Indonesia (Permits Pending)
                                                                               KPC Mines – 50km from the Bontang LNG gas processing and
Bowen Basin                                                                    shipping facilities
Meridian SeamGas CSG fields – 160km west of Gladstone                           *To a depth of approximately 1000m

  Certified 1P gas reserves of 30 petajoules (PJ), 94 PJ of 2P reserves
  and 170 PJ of 3P reserves net to WestSide producing about 3.5 PJ             2010 – 2011 Goals
  a year or 1.75 PJ net to WestSide
                                                                               Increase production
  Additional estimated gas in place 1,436 (bcf) net to WestSide
                                                                               Increase production from the Meridian SeamGas CSG fields
ATP 769P – Adjacent to the Meridian SeamGas CSG fields
  Paranui – Certified 3P Reserves (PJ) 135                                      Increase certified reserves
  Additional estimated gas in place 360 (bcf)* net to WestSide                 • Expand Meridian SeamGas 2P reserves

ATP 688P – Close to Townsville, adjacent to pipeline                           • Increase and convert existing 3P reserves to 2P at Paranui and Tilbrook
  Tilbrook – Certified 3P Reserves (PJ) 76                                      • Establish initial certification at Mount Saint Martin
  Mount Saint Martin – initial reserves evaluation underway
                                                                               • New exploration campaign in the Galilee Basin
  Additional estimated gas in place 1,322 (bcf) net to WestSide
                                                                               Expand CSG asset base
Galilee Basin
                                                                               Conduct exploration in previously unexplored areas of existing
ATP 974P & ATP 978P – Equidistant from Mt Isa and Townsville                   tenements and secure interests in new CSG prospects
  Exploration tenements covering an area of 14,480km2 in the
  north-western part of the Galilee Basin
  Possible gas in place estimates of up to 21 tcf*


2009 - 2010 Report Card
Achievement of 2009 – 2010 goals

 2009 – 2010 Goal                                          Status                       Result
 Reserves
 Convert 3P reserves to 2P at Paranui and Tilbrook         Work on-going                Production pilot appraisal significantly advanced
 Increase 3P reserves at Paranui, Tilbrook &               Work on-going                Production pilot programs expanded via drilling and appraisal
 Mount Saint Martin
 Achieve certification of 100 PJ of 2P reserves             94% complete                 94 PJ of 2P secured via Meridian SeamGas
 Increase estimated gas in place to 10 tcf                 Achieved                     Increased to 24.1 (tcf) via Galilee Basin tenement acquisition
 Advance Petroleum Lease applications                      Work ongoing                 The process of Petroleum Lease applications is continuing
 Paranui & Tilbrook
 Expand CSG asset base                                     Achieved                     Acquired 51% operating stake in Meridian SeamGas
                                                                                        Acquired Galilee Basin tenements ATP 974P & ATP 978P

Page 3   WestSide Corporation Limited Annual Report 2010
HIGHLIGHTS
• Accelerated transformation from CSG explorer to producer by acquiring a 51% operating stake
  in the Meridian SeamGas CSG fields near Moura for $26.8 million
• Raised $64.4 million via placements to new cornerstone investors and an underwritten
  Entitlement Offer to fund acquisition and development of the Meridian SeamGas CSG field
• Significantly increased certified reserves by 170 PJ of Proved, Probable and Possible (3P)
  including 30 PJ of Proved (1P) reserves and 94 PJ of Proved and Probable (2P) reserves via the
  Meridian SeamGas acquisition
• Established a strategic alliance with major Japanese trading house and Meridian JV partner
  Mitsui and a pathway to domestic gas and export LNG markets
• Strengthened the Board with the appointment of two experienced new Non-executive
  Directors in Robert Neale and John Clarke
• Completed the second phase of an $18m exploration and appraisal program – 13 wells drilled
  in ATP 688P and ATP 769P
• Secured a strategic 14,480 km2 foothold in Queensland’s coal-rich Galilee Basin by acquiring
  exploration tenements ATP 974P and ATP 978P after balance date
• Completed commissioning of the Schramm TXD 180 drilling rig
• Subsequent to year end, WestSide appointed experienced energy and resources industry
  executive Dr Julie Beeby as CEO to lead the Company into its first full year of production
  operations.


Reserves

                                              76
                                                                                                                                       30
                                                                                                               1P & 2P
                                                3P gas reserves                                              gas reserves
                                                                               170
                                                      381 PJ                                                    94 PJ
                                                  (Net to WestSide)                                      (Net to WestSide)
                                                         (PJ)                                                   (PJ)
                                            135                                                         64



                                                       Paranui                                               Proved Gas reserves
                                                       Tilbrook                                              Probable Gas reserves
                                                       Meridian SeamGas



 Gas reserves (PJ)                                                                           % Share         1P* (PJ)      2P* (PJ)         3P* (PJ) Additional GIP (bcf)*
 Meridian                                                                                        51             30            94              170                     1,436
 ATP 688P                                                                                       50                -                -           76                         1,322
 ATP 769P (to 1,000m)                                                                           50                -                -          135                          360
 Galilee Basin ATP 974P & ATP 978P                                                              100               -                -            -                   21,000
 Total excluding impact of proposed expanded Mitsui alliance                                                    30            94              381                    24,118
* Net to WestSide
Note: Meridian reserves are effective from July 1, 2010 and will change once adjusted for production.

                                                                                                                        WestSide Corporation Limited Annual Report 2010     Page 4
   CHAIRMAN’S
   REPORT




                                                                         “WestSide has clearly been able to steal
                                                                          a march on many junior energy sector
                                                                          peers during 2010 and now harbours
                                                                          aspirations of becoming a financially
                                                                          sustainable ASX 200 company.”
Drilling at Mount Saint Martin kept running
around the clock in April 2010                                           Angus Karoll – Chairman



The 12 months to June 2010 proved a watershed year for WestSide          steps to resource and manage the Company’s rapid growth.
during which time the Company transformed from a coal seam gas
                                                                         Importantly, Meridian’s acquisition has saved WestSide at least three
(CSG) explorer into a gas producer and emerged as a significant           years’ build time and significant capital to establish compression and
participant in Australia’s east coast energy market.                     transmission infrastructure to commercialise its adjacent Paranui CSG
WestSide’s purchase of Anglo American’s 51 per cent operating stake in   project in joint venture with QGC – a BG Group company.
the Meridian SeamGas CSG fields (Meridian), also teamed the               BG Group is considered to be leading the field of energy companies
company up with major Japanese trading house Mitsui to become one        looking to establish Liquefied Natural Gas (LNG) plants at Gladstone
of Australia’s largest, dedicated, ASX-listed, CSG producers and         just 160km to the east of Meridian SeamGas, providing us with
operators.                                                               another strategic advantage.
We were pleased to have attracted significant cornerstone support         WestSide has clearly been able to steal a march on many junior
from pioneering CSG sector investors New Hope Corporation (NHC)          energy sector peers during 2010 and now harbours aspirations of
and the Infrastructure Capital Group-managed Energy Infrastructure       becoming a financially sustainable ASX 200 company.
Trust (EIT), which shared our vision.
                                                                         Meridian strategy
NHC was a major shareholder in Arrow Energy, which was recently
acquired by Shell and EIT was an early investor in Queensland Gas        In line with our broader strategy, WestSide has built a strong pipeline
Company (QGC), which was taken over by BG Group in late 2008.            of projects at various stages of exploration, appraisal and production
Their participation in an institutional placement and preparedness to    with a regional focus on Australia and Queensland in particular.
underwrite a 1:1 entitlement issue, enabled us to raise $64.4 million    At the time of writing Meridian SeamGas joint venture gas sales
in fresh equity to fund the $26.8 million Meridian acquisition and
                                                                         were approximately 11.4 Tj/d, including gas purchased and processed
execute our growth strategy.
                                                                         through Meridian’s compressors for on-sale. This equates to
After balance date WestSide completed the acquisition of Galilee         approximately 4 PJ a year and is providing WestSide with operating
Basin exploration tenements ATP 974P and ATP 978P, providing the         cash flow for the first time.
Company with a strategic foothold over a combined area of 14,480
km2 in the basin’s north-western region.                                 However, operatorship of Meridian SeamGas – with its infrastructure,
                                                                         access to domestic and emerging export markets and proximity to
WestSide now operates four separate exploration tenements and a
                                                                         the Company’s Paranui joint venture with QGC – has placed WestSide
producing gas field compared with just two exploration tenements 12
                                                                         in an enviable strategic position to exploit a range of opportunities.
months ago.
Having moved decisively to fast-track our progression from explorer      Importantly, the joint venture’s supply contract with AGL Energy
to producer in only our third full year of operation, WestSide’s         expires in 2014-15 leaving 68 per cent of the field’s existing 2P
transition and integration team took the necessary organisational        reserves and 82 per cent of 3P reserves uncontracted.

Page 5   WestSide Corporation Limited Annual Report 2010
The Meridian SeamGas CSG fields contain certified Proved (1P) gas           the Schramm drilling rig – a factor which has enabled us to control
reserves of 30 PJ, 94 PJ of 2P reserves and 170 PJ of 3P reserves (net    operating costs and execute our field programs with confidence.
to WestSide).
                                                                          Additional reserves
The quality of the coal within the Meridian SeamGas fields prompted
                                                                          In the medium term WestSide intends to focus on progressing its
previous owners of large Bowen Basin acreage positions, such as
                                                                          Paranui project in ATP 769P, due to its proximity to the Meridian
Conoco and BHP, to drill their first wells in this area due to the high
                                                                          field’s infrastructure, and the Mount Saint Martin and Tilbrook
gas content of up to 23 cubic metres a tonne.
                                                                          projects in ATP 688P.
We believe there is potential to increase the joint venture’s un-risked
                                                                          A reserves upgrade at Paranui and an initial reserve certification of
gross 2P reserves to in excess of 500 PJ, which would more than triple
                                                                          the Mount Saint Martin pilot area are expected to further increase
WestSide’s net reserves position.
                                                                          WestSide’s 2P reserve position and build on the Company’s 381 PJ of
Given the low cost development profile and access to gas transport         3P reserves.
infrastructure, WestSide’s near term objective is to boost Meridian
                                                                          Along the eastern margins of ATP 769, there is further potential for
SeamGas production and sales while simultaneously increasing the
                                                                          CSG at depths not exceeding 1,200m. Current modelling indicates
field’s certified reserve position.
                                                                          potential there for an additional 400 PJ of risked 3P reserves.
Meridian will therefore play a pivotal role in the achievement of
                                                                          Importantly, the acquisition of ATP 974P and ATP 978P in the
WestSide’s near term ambition to establish total net certified 2P
                                                                          Galilee Basin has provided WestSide with a longer term growth
reserves of 250 PJ and 3P reserves of 1,000 PJ.
                                                                          focus as well.
The joint venture is now rolling out the $14.5 million first stage of
                                                                          Based on current historical results our Galilee Basin tenements could
a field development program involving a series of dual-lateral and
                                                                          hold a potential 21,000 bcf of gas in place. A four-well grass roots
vertical production wells and a work-over campaign targeting 22
                                                                          exploration program being planned could yield an initial 170 PJ of
production wells for improvement.
                                                                          3C reserves.
We are also planning to drill exploration wells further to the south
west of existing production areas in PL94 during FY2011 in readiness
for further growth.
Significantly, WestSide started drilling at Pretty Plains within weeks
of taking over operatorship of the Meridian fields on July 1 2010.
This would have been difficult without WestSide’s priority access to


                                                                                                WestSide Corporation Limited Annual Report 2010   Page 6
The Hillview compressor station processes Meridian SeamGas output with plenty of capacity for expansion




Markets                                                                    Regulation
The Meridian acquisition provides WestSide an opportunity to access        Over the past 12 months the CSG industry has witnessed a range
international LNG markets through Mitsui’s global LNG network              of Queensland Government initiatives to strengthen the State’s
and for the joint venture to consider supplying new domestic gas           regulatory and compliance regime in response to public concerns
contracts from 2015-16 once the current supply contracts expire.           about a range of safety and environmental issues.
Exports aside, domestic market opportunities include production of
                                                                           WestSide is generally supportive of these initiatives and has been
ammonia, ammonium nitrate, other industrial chemicals and LNG for
use as a diesel replacement, as well as meeting demand from heavy          working closely with the Queensland Government to put in place
industry in Gladstone and new and existing power generators.               monitoring and reporting systems which will provide relevant
                                                                           operational information transparently and in a timely manner.
Domestic gas prices along Australia’s east coast are also likely to rise
significantly once exposed to international competition from the LNG        Meridian, Australia’s first producing CSG field, was established in
industry, as Western Australia’s recent experience suggests.               the late 1990s so surrounding landholders have had a great deal of
                                                                           experience co-existing and operating alongside the industry.
Relationships
                                                                           While water management has emerged as a significant issue for CSG
As a result of the Meridian acquisition, WestSide has developed a close
                                                                           producers in the Surat Basin, operations within WestSide’s Bowen
working relationship with Mitsui via its joint venture with Mitsui E&P
                                                                           Basin tenements produce comparatively minimal amounts of water.
Australia Pty Ltd and provision has been made to significantly expand
                                                                           Consequently we have not encountered any significant issues.
our alliance.
WestSide is committed to developing and maintaining a strong               WestSide anticipates that any additional water generated as a result
relationship with Anglo Coal and Mitsui on whose mining lease the          of the Meridian SeamGas fields’ continued development will be taken
Company now operates.                                                      by nearby users.

WestSide is also working closely with QGC as our 50 per cent joint         Leading industry team
venture partner in ATP 769P and ATP 688P.
                                                                           We have focused on building an industry-leading management team
These strong relationships position WestSide strategically well for        to provide the expertise required to manage WestSide’s continued
the future.                                                                growth and transformation from an explorer to a producer.
As a gas producer, WestSide also intends to nurture its new                WestSide’s Board has also been considerably strengthened through
relationship with gas customer AGL Energy with a view to increasing        the appointment of Infrastructure Capital Group’s managing director
production and sales.                                                      John Clarke and New Hope Corporation’s managing director Rob



Page 7   WestSide Corporation Limited Annual Report 2010
Neale, who have brought a wealth of experience and a pertinent
mix of skills to the Company.
                                                                        “This is an exciting time for WestSide
Rob’s commercial, coal industry and M&A experience and John’s            and I look forward to working with the
infrastructure and financial market strengths have balanced
and complemented those of the existing Directors to guide the
                                                                         Board and executive team on further
Company through this exciting period of growth.                          expanding WestSide’s operations
The appointment of Dr Julie Beeby to the position of Chief               following the Company’s recent
Executive Officer in July 2010 further bolstered the mix of technical
and commercial experience available to WestSide to lead the              transformation from an explorer to a
Company through its first year and beyond as a significant gas
producer and marketer.
                                                                         coal seam gas producer and operator.”
Consequently, I relinquished day-to-day management control of            Dr Julie Beeby – Chief Executive Officer
the Company to Dr Beeby on August 30, 2010 to continue in
the role as WestSide’s Chairman.
The Board remains committed to growing your Company and
increasing the value of WestSide for all shareholders.
In conclusion and on behalf of the Board, I would like to thank
all members of the WestSide management team and associated
people for their much-valued contribution and look forward to
what promises to be another exciting year.
Thank you for your support,




Angus Karoll
Chairman



                                                                                           WestSide Corporation Limited Annual Report 2010   Page 8
   OPERATIONAL
   REPORT




Running a clean operation while drilling to increase Meridian SeamGas production and reserves




WestSide enjoyed another year of notable achievements and growth             These functions include core petroleum and geological expertise
during its third full year of operations, culminating with the acquisition   as well as corporate governance and compliance, information and
of Anglo American’s 51 per cent joint venture operating interest in the      communications technology, accounting, investor and community
since renamed Meridan SeamGas CSG fields.                                     relations and workplace health, safety and environment.

WestSide significantly expanded its asset portfolio as a result of the        Early in the December quarter WestSide completed commissioning of
Meridian SeamGas and Galilee Basin acquisitions (ATP 974P and                the new Schramm TXD 180 drilling rig – one of the largest and most
ATP 978P), in addition to the Company’s existing interests in ATP 769P       efficient dedicated CSG rigs now operating in Australia.
and ATP 688P.                                                                The rig’s availability has reduced WestSide’s exposure to market costs
These transactions, together with the new joint venture with leading         and provided greater control over the Company’s drilling programs.
Japanese trading house Mitsui, have created a strong platform of             Immediately after the Meridian transaction settled, the Schramm rig
exploration and production assets for growth.                                was deployed to start the first of a series of new lateral production
                                                                             well sets. These wells form part of Stage One of a development program
The Company is now a marketer and seller of gas from a proven
                                                                             to increase field output.
CSG field with proved gas reserves, associated infrastructure and
significant additional gas in place exceeding 1.4 trillion cubic feet         The joint venture has set a development budget of $14.5 million for
(tcf) in Meridian SeamGas alone.                                             this initial stage of the Meridian SeamGas CSG fields’ development
                                                                             program, plus a work-over component targeting 22 of the existing
The safety of our staff and contractors is of paramount importance           73 production wells for improvement.
and one of WestSide’s most pleasing achievements again this year
was the completion of all operations on behalf of our partner –              WestSide has been working closely as operator with the Queensland
BG Group – without a reportable treatment incident.                          Government to ensure new environmental compliance regulations in
                                                                             relation to water management, drilling practices and production well
Prior to settling the Meridian transaction, WestSide established a           monitoring are being met.
dedicated transition and integration group and assembled a team of
                                                                             Despite an extended period of bad weather WestSide’s drilling
experienced gas field operators to take over control and management
                                                                             activities during the December and March quarters were accelerated
of these strategic, income-producing assets.
                                                                             to complete two pilots.
WestSide has created a new, experienced team to manage specialist
                                                                             The onset of heavy monsoonal rains occurred just as the Company
functions and services within the expanded business under the
                                                                             was preparing to launch an aggressive new program of work at
leadership of incoming CEO, Dr Julie Beeby.
                                                                             Paranui, in ATP 769 and Tilbrook and Mount Saint Martin, in ATP
                                                                             688P, in pursuit of additional gas reserves.


Page 9   WestSide Corporation Limited Annual Report 2010
                                                                        “The Company is now a
                                                                         marketer and seller of gas
                                                                         from a proven CSG field
                                                                         with proved reserves.”




                                                                         Wells Drilled
                                                                         15




                                                                         10



                                                                                                                13
                                                                         5
                                                                                  8              7

                                                                         0
                                                                                FY 2008       FY 2009         FY 2010


WestSide nevertheless drilled 13 new wells during the year – three of    encountering intersections of 9m and 10m in two wells and a net
which were completed at Paranui using a new completion technique         three metres in the other after adjusting for the impact of local
based on previous tests in the existing pilot.                           intrusions.
These new Paranui wells intersected between 26m and 30m of net           Any future horizontal wells to be drilled, following further reservoir
coal and have been under-reamed and flushed in selected coal seams.       modelling, will target commercial gas flow rates to underpin
The performance of these vertical wells will be compared to the          certification of 2P gas reserves at the pilot once the regional
results from the existing three Paranui pilot wells which were           prospectivity has been assessed.
subjected to fracture stimulation treatments.
                                                                         In the meantime, an extended production test of the current
In the new Mount Saint Martin area we completed a set of six wells       appraisal wells, Tilbrook #7 and Tilbrook #8, was continuing as
comprising three appraisal wells, two exploration wells and one core     this report went to print.
hole. Additional, deeper coal seams were identified that could
                                                                         In July 2010, WestSide completed the acquisition of 100 per cent
significantly increase the Company’s CSG resource in the area, with
                                                                         interests in two new exploration tenements, securing a significant
net coal ranging from 10m to 28m.
                                                                         foothold for the Company in Queensland’s coal-rich Galilee Basin.
Three of these wells are being completed with pumping equipment          This purchase was approved by shareholders at a meeting in
to form a production pilot. An extended production test will follow      November 2009.
to capture gas and water production data critical to evaluating the
                                                                         The Galilee Basin has been attracting increasing interest from CSG
prospects of the field.
                                                                         explorers and producers, with several exploration and appraisal
An additional core hole drilled at the nearby Mount Leslie prospect      projects already starting to deliver encouraging results.
to the south confirmed that coals in that particular area were heat
                                                                         WestSide believes the two tenements (ATP 974P and ATP 978P)
affected and not prospective for CSG at that location.
                                                                         could contain up to 21 tcf of gas in place and is conducting geological,
The Tilbrook #8 dual-lateral pilot well’s encouraging initial            geophysical and other engineering studies within the two tenements
performance, which peaked at 340,000 standard cubic feet a day           as a precursor to exploratory drilling.
before the blockage of one of the horizontal wells with accumulated
coal fines, demonstrated the producability of coals in the region.
WestSide drilled a further three wells during the December quarter
in preparation for new lateral wells to expand the Tilbrook pilot,




                                                                                               WestSide Corporation Limited Annual Report 2010   Page 10
WestSide now operates infrastructure to supply east coast markets and pursue export LNG opportunities




   Australian projects portfolio




Page 11   WestSide Corporation Limited Annual Report 2010
                                                                      “The Meridian SeamGas CSG
                                                                       fields are also of additional
                                                                       strategic importance as they
                                                                       provide a potential pathway
                                                                       to market for WestSide’s
                                                                       gas at Paranui within the
                                                                       adjacent tenement ATP 769P.”




Meridian SeamGas CSS Fields                                           Gas reserves
                                                                      The fields have certified Proved (1P) gas reserves of 30 PJ, 94 PJ of
PL94 & Mining Lease gas rights                                        Proved and Probable (2P) reserves and 170 PJ of Proved, Probable
                                                                      and Possible (3P) reserves (net to WestSide).
Location: Moura – Bowen Basin, Queensland
                                                                      However, there is significant un-appraised gas within the lease area
WestSide interest: 51%                                                which contains a number of prospects. An additional five seams are
                                                                      currently not reserve certificated. CSG contained at depths greater
Reserves: 30 PJ (1P), 94 PJ (2P), & 170 PJ (3P) net to WestSide
                                                                      than 1,000m has not been included either so the potential upside is
Additional GIP estimate: 1,436 bcf net to WestSide                    significant.

                                                                      Operations
In March 2010 WestSide joined Mitsui E&P Australia Pty Ltd
(MEPAU) to acquire the Dawson CSG fields near Moura in                Representatives from WestSide and MEPAU held a number
Queensland’s Bowen Basin from Anglo American (Anglo) and              of planning meetings after the joint venture took control
Mitsui Moura Investment Pty Ltd.                                      of the Meridian SeamGas CSG fields to finalise the drilling and
                                                                      maintenance schedule and budget for the next two quarters.
During the June quarter, WestSide assembled a team of experienced
gas field operators and on 1 July 2010, commenced operating the        Within six weeks of assuming operatorship, WestSide had lifted
field which is currently producing approximately 9-10 terajoules of    production by 6.3 per cent and restored field output to January
gas a day (Tj/d).                                                     2010 levels.
The renamed Meridian SeamGas CSG fields comprise a range of
                                                                      Total gas sales to AGL under the existing contract have been running
CSG assets including a petroleum lease (PL94), gas rights in mining
                                                                      at around 11.4 TJ/d – a little higher than production due to gas purchased
leases, 73 production wells and gas compression and pipeline
infrastructure connected to Queensland’s commercial gas network       and processed for onsale.
and Gladstone, just 160km to the east.                                WestSide has also been working closely as operator with the
                                                                      Queensland Government to ensure new environmental compliance
CSS Fields                                                            regulations in relation to water management, drilling practices and
The Meridian SeamGas CSG fields are also of additional strategic       production well monitoring are met.
importance as they provide a potential pathway to market for
WestSide’s gas at Paranui within the adjacent tenement ATP 769P
which the Company operates in joint venture with BG Group.


                                                                                            WestSide Corporation Limited Annual Report 2010   Page 12
The Schramm rig was on site and drilling the Pretty Plains #5 dual-lateral well in August 2010



Meridian SeamGas: Area of operations

                                                                                                 Future activity
                                                                                                 The joint venture is now rolling out
                                                                                                 the $14.5 million first stage of a field
                                                                                                 development program designed to
                                                                                                 increase production and certified
                                                                                                 reserves.
                                                                                                 At the time of writing Pretty Plains
                                                                                                 #5 – the first of a series of dual-lateral
                                                                                                 production well sets to boost CSG
                                                                                                 output – was nearing completion
                                                                                                 while seven wells, of 22 targeted for
                                                                                                 improvement, had been worked over
                                                                                                 and rejuvenated.
                                                                                                 Each of the new dual-lateral production
                                                                                                 wells involves drilling a vertical well
                                                                                                 component to a total depth of approximately
                                                                                                 600m and two lateral holes targeting the
                                                                                                 Baralaba Coal Measures at separate
                                                                                                 depths of around 400m.
                                                                                                 Use of a trilateral configuration is also
                                                                                                 being considered to target another of the
                                                                                                 more productive gas-bearing seams within
                                                                                                 the structure.
                                                                                                 The joint venture’s goal is to steadily
                                                                                                 increase production while undertaking
                                                                                                 further seismic and basin modelling work
                                                                                                 with a view to further field expansion.
                                                                                                 To this end planning is underway to drill
                                                                                                 exploration wells further to the south
                                                                                                 west of existing production areas in
                                                                                                 PL94 during FY2011 targeting an
                                                                                                 upgrade in certified 2P reserves.




Page 13   WestSide Corporation Limited Annual Report 2010
ATP 769P – Paranui
Location: Moura-Bowen Basin, Queensland
WestSide interest: 50%

Reserves: 135 PJ (3P) net to WestSide

Additional GIP estimate: 360 bcf net to
WestSide


The Paranui CSG pilot is located 10km south
of Moura and just 5km to the west of the
adjacent producing Meridian SeamGas CSG
fields in which WestSide has a 51 per cent
operating interest. The target Baralaba Coal
Measures in this part of the tenement, lie
at a depth of between 550m and 950m and
generally contain 21-25m of gas-bearing coal
in up to 12 seams.
The Paranui pilot comprises three exploration
wells (Paranui #5R, #6R and #8), two
observer wells (Paranui #4 and #7) and one
                                                                                                                                   ATP 769P – Paranui
core well (Paranui #10).

Gas reserves                                       Operations                                         on the initial certified gas reserves and
                                                                                                      converting some of the existing 3P gas
WestSide booked 135 PJ of certified 3P              Production testing of the Paranui #5R and          reserves into 2P reserves.
gas reserves at the 25km2 Paranui pilot in         Paranui #8 wells continued during the year.
June 2009. The result exceeded WestSide’s          Three new appraisal wells (Paranui #11,            The three new appraisal wells will be
expectations based on its previous gas in place    Paranui #12 and Paranui #13) were also             completed with pumps for an extended
estimates for the tenement.                        drilled in June and July of 2010. The new          production test. The performance of these
                                                   wells intersected between 26m and 30m of           flushed and air-lifted, vertical wells will
It is estimated that ATP 769P contains a                                                              then be compared to results from the
                                                   net coal and have been under-reamed and
further 360 bcf of gas in place (WestSide share)                                                      existing three Paranui pilot wells which
                                                   flushed in selected coal seams.
to a depth of 1,000m. Substantially higher                                                            were subjected to fracture stimulation
quantities of gas in place could be accessed by    Future Activity                                    treatments.
drilling to depths greater than 1,000m.
                                                   Planned activities at Paranui in ATP 769P in
Proximity to the Meridian SeamGas CSG fields        the coming year will be aimed at building
also importantly provides a strategic potential
pathway to market for gas from Paranui.

                                                                                                  WestSide Corporation Limited Annual Report 2010   Page 14
ATP 688P – Tilbrook,
Mount Saint Martin
& Bald Hill
Location: Collinsville – Bowen Basin,
Queensland

WestSide interest: 50%

Reserves: 76 PJ (3P) net to WestSide

Additional GIP estimate: 1,322 bcf net to
WestSide


Located to the south of Collinsville and
situated adjacent to the Moranbah-to-
Townsville gas pipeline, the projects within
ATP 688P target the coal seams of the
Moranbah Coal Measures. The coal seams in
this area lie at depths between 300m and
600m and contain between 7m and 15m of
gas-bearing coal.
WestSide also plans to examine the potential
of the Rangal and Fort Cooper Coal Measures
in the northern area of the tenement in
future exploration programs.

Gas reserves
WestSide’s share of 3P reserves from the
initial area addressed by the Tilbrook pilot
was certified at 76 PJ in June 2009.
This result was consistent with WestSide’s
previous gas in place estimates for the area,
providing an increased level of confidence
that the Company can convert its share of                   ATP 688P – Tilbrook, Mount Saint Martin & Bald Hill
gas in place in the remainder of the northern
precinct of the tenement, estimated at 1,322                The results from these wells confirmed           is comprised of one dual-lateral horizontal
bcf, into commercial reserves.                              that the Mount Saint Martin precinct has        appraisal well (Tilbrook #8), one vertical
                                                            the potential to contribute significantly to     appraisal well (Tilbrook #7) and two
Operations                                                  WestSide’s gas reserves.                        observation wells (Tilbrook #4 and #6).
The 2009-10 program for ATP 688P included                   In May 2010, ten 2D seismic lines covering      Production testing of the Tilbrook #8 dual-
four exploration wells (Tilbrook #9a and                    56km were surveyed in the Mount Saint           lateral well continued throughout the year
#10b; and Mount Saint Martin #6 and Mount                   Martin region.                                  despite an accumulation of coal fines which
Saint Martin#7), two core wells (Mount Saint                                                                blocked one of the horizontal wells.
                                                            In response to promising gas content and
Martin #5 and Mount Leslie #8) and four
                                                            saturation data from the Mount Saint Martin     The achievement of peak gas flow rates of
appraisal wells (Tilbrook #9 vertical, Mount
                                                            #1 well, WestSide drilled seven new wells       340,000 standard cubic feet per day and
Saint Martin #2, Mount Saint Martin #3 and
                                                            in the region during the year, including an     400 barrels of water per day, before this
Mount Saint Martin #4).                                                                                     well became partially blocked, provided
                                                            exploration core hole at Mount Leslie to the
Seismic data was also acquired at Mount                     south, to further define the gas resource.       confidence that commercial flow rates can
Saint Martin and Tilbrook to confirm the                                                                     be achieved from the field using this style of
                                                            These wells identified additional, deeper coal
suitability of the geological structure for                                                                 completion.
                                                            seams that could significantly increase the
horizontal drilling.                                        Company’s CSG resource within the area,         During the December quarter, WestSide drilled
                                                            with net coal ranging from 10m to 28m.          three additional wells (Tilbrook #9a, Tilbrook
Mount Saint Martin
                                                                                                            #9 and Tilbrook #10b) in preparation for new
The coring program to the north of Tilbrook                 However, the Mount Leslie #8 exploration        lateral wells to expand the Tilbrook pilot once
                                                            core well confirmed that the coals in this       the regional prospectivity has been assessed.
at Mount Saint Martin successfully identified
                                                            area even further to the south are heat
eight to nine metres of gassy coal in an area                                                               The Tilbrook #9a exploration well and
                                                            affected and therefore no longer considered
previously considered to be intruded and                                                                    Tilbrook #9 vertical appraisal well intersected
                                                            prospective for CSG in that area.
unsuitable for CSG production.                                                                              9m and 10m of net coal respectively. The
                                                            Tilbrook pilot                                  Tilbrook #10b exploration well encountered
Desorption of the coal cores delivered
impressive preliminary average gas contents                 The Tilbrook pilot which has been designed      three metres of net coal after adjustments
of 8.3 m3/t at Mount Saint Martin.                          to appraise the Moranbah Coal Measures,         for the impact of localised intrusions.

Page 15   WestSide Corporation Limited Annual Report 2010
Future activity                                                                                        Establishment of a material CSG resource in
                                                    Galilee Basin                                      the region could underwrite construction of
Studies of available data have confirmed an
                                                                                                       pipeline infrastructure to markets in Mt Isa
estimated additional gas in place of 1,322 bcf
in the northern part of the tenement.
                                                    ATP 974P & ATP 978P                                or on the Queensland coast.
                                                    Location: Hughenden – Galilee Basin,               WestSide believes the area could contain
The combined data sets from the wells and
seismic acquisition are being incorporated          Queensland                                         up to 21 trillion cubic feet of gas in place to
into a geological model which will form the                                                            depths of 1,050m and potentially more gas,
                                                    WestSide interest: 100%
basis for evaluation of gas reserves in the                                                            subject to prospectivity, at greater depths.
Mount Saint Martin area.                            GIP estimates: 21 tcf
                                                                                                       Future activity
Operations in the coming year will continue
to target achievement of commercial flow             In July 2010, WestSide completed the               WestSide is conducting geological,
rates at Tilbrook from horizontal wells and         acquisition of 100 per cent interests in           geophysical and other engineering studies
the results of the Mount Saint Martin testing       two new exploration tenements after they           within the two tenements as a precursor to
program to support an upgrade of reserves.          were formally granted by the Queensland            commencement of exploratory drilling. An
                                                    Government, securing a significant foothold         exploration program is planned to commence
Mount Saint Martin
                                                    for the Company in the state’s new coal-rich,      later this financial year to identify the extent
WestSide plans to complete three of the             CSG frontier in the Galilee Basin.                 of the coal resource and its gas content.
new wells at Mount Saint Martin with                WestSide will target CSG within the two            Successful results from the initial drilling
pumping equipment in the near future to             exploration tenements, ATP 974P and ATP
form a production pilot.                                                                               program could lead to up to 40 stratigraphic
                                                    978P, which cover a combined area of 14,480
                                                                                                       holes being drilled across each tenement in
An extended production test will then follow        km2 in the basin’s north-western region.
                                                                                                       the first four years to prove the extent of the
to capture gas and water production data            Regionally, the Galilee Basin has been             resource and target the certification of gas
critical to evaluating the prospects of the field.   attracting increasing interest from explorers      reserves.
                                                    and producers, with several exploration and
Tilbrook
                                                    appraisal projects already underway.
Reservoir modelling is continuing using data
accumulated during production testing and
a seismic survey undertaken in October 2009
to confirm the coal structure for horizontal
drilling and pilot expansion.
Once the regional prospectivity has been
assessed, WestSide will review a plan to drill
lateral wells during the year ahead to expand
the existing pilot. These planned horizontal
wells will target commercial gas flow rates
to underpin certification of 2P gas reserves at
the pilot.

Other Activity
WestSide and joint venturer QGC are
currently planning a program of additional
exploratory wells and up to 300km of seismic
surveys to be conducted in other areas of
ATP 688P during FY2011 to identify any
other likely producing areas in the tenement.
                                                                                                                 ATP 974P & ATP 978P –Galilee Basin




International
Indonesia                                           Bumi subsidiaries PT Kaltim Prima               Company will concentrate almost exclusively
                                                    Coal (KPC) and PT Arutmin Indonesia             on opportunities in Australia and more
Location: Kalimantan                                are together the largest thermal coal           particularly, those in Queensland.
WestSide has agreements with Indonesia’s            producers in Indonesia.
leading thermal coal producer, PT Bumi              However, until WestSide’s tenure in
Resources, to jointly explore for CSG in            these areas has been confirmed, the
Indonesia.




                                                                                                    WestSide Corporation Limited Annual Report 2010   Page 16
   FINANCE
   REPORT




The Mount Saint Martin project in ATP 688P was the focus of WestSide’s drilling campaign during FY2010




During the 12 months to June 2010 WestSide transformed from an            The year was also one of WestSide’s most active exploration periods
ambitious explorer to a growth-orientated producer with a range of        to date. Thirteen new exploratory and appraisal wells were drilled in
assets and projects in various stages of development.                     the Bowen Basin at a cost to WestSide of $6.5 million. Six of the new
                                                                          wells will be placed on production test in coming months.
At a time when many organisations were shoring-up their capital
position, WestSide’s management team was finalising a transaction          To combat rising costs and scheduling pressures fueled by
that would double the Company’s market capitalisation and deliver a       Queensland’s booming CSG sector, WestSide successfully
growing stream of revenue, gas reserves and an alliance with one of       commissioned a new Schramm TXD 180 drilling rig during the year.
Asia’s leading LNG suppliers.                                             The rig was commissioned in October 2009 and has been drilling on
The growth strategy was well supported by the investment                  the Company’s tenements since that time. Having now completed
community, with $64.4 million raised from two new cornerstone             the usual commissioning period the rig promises to deliver cost and
investors and from existing shareholders via a 1:1 entitlements issue.    scheduling efficiencies unavailable to other industry participants.

Completion of the fund raising in a volatile market was a significant      The Company’s operating loss of $2.5 million for the year was in
achievement. Importantly, this also led to a 70 per cent increase in      line with expectations and included $500,000 of transition costs
the number of shareholders on the register which should increase the      as the Company prepared to take control of the Meridian SeamGas
liquidity of WestSide shares over time.                                   CSG fields.
                                                                          WestSide has built an experienced team of professionals and
The capital raising was sized specifically to provide sufficient capital
                                                                          upgraded its office space, systems and controls to support an
to enable WestSide to cover, not only the $26.8 million acquisition
                                                                          operational and exploration budget for our joint ventures, which
price of the Meridian SeamGas assets, but also the Company’s
                                                                          is likely to exceed $30 million this coming year (WestSide’s share
share of the expected development costs required to increase field
                                                                          $15 million).
production toward the contracted rate of 25 Tj/d by late 2012.
                                                                          WestSide’s focus over the coming year will be to reduce the gap
This strong capital position leaves WestSide well placed to execute
                                                                          between the contracted quantities and the legacy production rates at
the program.                                                              Meridian SeamGas.
While the Meridian SeamGas CSG fields will be the cornerstone for          Every incremental gigajoule of gas delivered will result in direct
WestSide’s next phase of growth, the acquisition during the year          revenue and also reduce the remedy payable on the shortfall. Already
of two new exploration tenements in the Galilee Basin – regarded          a number of existing wells have been returned to production and
by some as Queensland’s last frontier for coal seam gas – provides        drilling of new wells is underway.
significant potential upside for the Company. Initial exploratory
drilling is scheduled to commence later this financial year.

Page 17   WestSide Corporation Limited Annual Report 2010
                                                                                “ WestSide’s focus over
                                                                                  the coming year will be to
                                                                                  reduce the gap between
                                                                                  the contracted quantities
                                                                                  and the legacy production
                                                                                  rates at Meridian SeamGas.”




The Company is determined to maintain the momentum for growth
in production and reserves in the coming year while targeting industry
benchmark operational and development costs at Meridian SeamGas.
The next 12 months look set to be a busy time across all of
WestSide’s areas of operations.
New gas reserves will be targeted through initial drilling in the Galilee
Basin; new pilot operations at Mount Saint Martin and Paranui; and                              1.46     0.78
exploratory drilling in QGC-operated areas of ATP 769P and ATP 688P.                                                2.21
Drilling and work-overs at Meridian SeamGas will also target                          1.36
additional production and reserves.
Importantly, WestSide starts the new financial year well-resourced                               Application of
and capitalised to fund its share of activities aimed at delivering                          funds to 30 June 2010
further value through increased reserves and production across its                                ($million)
diversified portfolio of assets.
                                                                                     5.36                                  4.85
Exploration and appraisal expenditure (WestSide’s Share)
            7

            6

            5
                                                                                             Purchase of tenements
$ million




            4
                                                                                             Share issue costs
            3
                                                                                             Australian Exploration & Appraisal
            2                                                                                Management & GST
            1                                                                                Property plant & equipment
                0.948   5.996   2.336   1.956   0.569   2.407   2.426   4.519                Commissioning of drilling rig
            0
                FY07    FY08    FY09    FY10    FY07    FY08    FY09    FY10
                          ATP 769P                       ATP 688P


                                                                                        WestSide Corporation Limited Annual Report 2010   Page 18
DIRECTORS




Angus Karoll                                                John Clarke                                      Tony Gall
Chairman                                                    Director                                         Director
Director since November 2005                                BCom, ACA                                        FCA

Angus is the founding Director of WestSide                  Director since May 2010                          Director since November 2005
Corporation Ltd and has been instrumental in                John is the Managing Director of                 Tony was a former employee and partner
establishing the Company, including forming                 Infrastructure Capital Group. John has           of Price Waterhouse for 39 years, during
strategic relationships with investors and                  extensive experience in the financing of          which time he gained international
joint venture partners.                                     infrastructure-related businesses and            experience in the UK, USA and Indonesia.
Angus was the key driver and initiator of the               projects, including the Condamine Power          More recently he has been an independent
development of a world-scale downstream                     Station (now owned by QGC) and Esperance         advisor and consultant to small and medium
processing project for ammonia and urea in                  Power Station and Pipeline in Western            enterprises. He brings extensive exposure
Asia and enlisted influential Australian and                 Australia. John’s previous experience includes   to a wide variety of industries and particular
international parties into a consortium to                  merger and acquisitions in the New Zealand       depth in the Audit and Corporate Advisory
develop the project.                                        electricity industry, and more recently he was   area in which he specialised at Price
                                                            the CEO of Infratil Australia Ltd and Managing   Waterhouse. Tony is Chairman of the Audit
He was also responsible for conducting due
                                                            Director of HRL Morrison & Co Pty Ltd.           and Compliance Committee.
diligence on several other conventional gas
projects in South East Asia.                                John is Chairman of Stadium Australia Group
                                                            (ANZ Stadium) and a Director of leading
Angus was the President Director and
                                                            infrastructure industry group Infrastructure
controlling shareholder of PT WestSide
                                                            Partnerships Australia, Gas Pipelines Vic Pty
Agritama, a major provider of logistics and
                                                            Ltd, Esperance Pipeline Co Pty Ltd, Esperance
transport services in Indonesia. He originally
                                                            Power Station Pty Ltd, Stadium Investments
established this company in 1997 as a joint
                                                            Pty Ltd, Biodiesel Producers Ltd, Neerabup
venture with JR Simplot International, one of
                                                            Power Station Holdings Pty Ltd and Ochre
the United States’ largest private agricultural
                                                            Services Ltd.
enterprises.
                                                            John has been a member of the Audit and
                                                            Compliance Committee since July 2010.



Page 19   WestSide Corporation Limited Annual Report 2010
Trent Karoll                                    Nathan Mitchell                                      Robert Neale
Director                                        Director                                             Director
BEc, FAICD                                      Director since December 2008                         BSc (Hons)

Director since August 2006                      Nathan was the Chief Executive Officer of            Director since May 2010
Trent is a former Joint Managing Director       Mitchell Drilling Corporation, overseeing its        Rob has more than 40 years’ experience
of the Nelson Group of Companies, a             expansion prior to the sale of its Australian        in the resources sector and is Managing
substantial private business, with operations   operations to Lucas Coal Technologies in 2008.       Director and CEO of New Hope Corporation
in Australia, New Zealand and Germany and       As the Chief Executive Officer of the                Ltd. His main areas of expertise lie in
over 400 employees.                             privately-held Mitchell Energy Group, Nathan         exploration and mining industries in several
                                                continues to manage international drilling           countries covering gold, base metals,
Trent has a strong financial and operations
                                                operations.                                          synthetic fuels, coal, bulk materials and
background across broad industry sectors
                                                                                                     shipping as well as power generation
including manufacturing, distribution,          Nathan has been involved with the research
                                                                                                     projects.
wholesaling and retail.                         and development of drilling techniques in the
                                                coal seam gas industry.                              Over the past 15 years, Rob has effectively
He has also gained commercial experience
                                                                                                     led corporate growth through business
in commodity futures trading and corporate
                                                                                                     improvement, asset management and
recovery. Trent is an experienced company
                                                                                                     successfully implemented new business
director occupying more than 10 board
                                                                                                     ventures.
positions in a variety of private companies.
Trent is a member of the Audit and                                                                   Rob is also a Non-executive Director of
Compliance Committee.                                                                                Planet Gas Limited and a Director of both
                                                                                                     the Queensland Resources Council and
                                                                                                     Australian Coal Association.




                                                                                                WestSide Corporation Limited Annual Report 2010   Page 20
MANAGEMENT




Dr Julie Beeby                                              Damian Galvin                                    Simon Mewing
Chief Executive Officer                                     Chief Financial Officer and                      Chief Operating Officer
BSc (Hons), PhD, MBA, GAICD                                 Company Secretary                                BE Chem (Hons)

Joined WestSide in July 2010                                BBus (Accounting), CA                            Joined WestSide in October 2008

Julie is a development and change                           Joined WestSide in 2006                          Simon is a chemical engineer with more
management leader with 22 years’                                                                             than 28 years’ experience in the oil and gas
                                                            Damian is a Chartered Accountant with            industry covering both upstream exploration
experience working within Australia’s
                                                            17 years’ experience in the financial             and production and downstream businesses,
resources sector, including senior coal, gas
                                                            management of companies in Australia and         including refining and Liquefied Natural Gas.
and chemicals management roles with
                                                            overseas.
Peabody Energy, Anglo and BHP Billiton.
                                                                                                             Simon joined WestSide from energy sector
                                                            A former Chief Financial Officer and             service provider AGR Asia Pacific where
Previously, Julie was employed by Peabody
                                                            Company Secretary of coal seam gas pioneer,      he was Queensland Manager. Previously,
Energy Australia as General Manager
                                                            Queensland Gas Company, Damian headed            Simon worked in refining engineering and
Strategic Planning and Projects, where she
                                                            QGC’s corporate function for five years, during   management for 16 years. He was also
was closely involved in the development and
                                                            which time the company grew from a junior        employed by Santos for 6 years where
expansion of Peabody’s mining operations in
                                                            CSG explorer to one of Australia’s major CSG     he gained experience in exploration and
Australia, including the $2 billion acquisition
                                                            producers.                                       production.
and integration of Excel Coal.
                                                            He has also had previous financial and
Significantly, Julie managed and developed
                                                            commercial experience with Premier Oil Plc
part of what now comprises the Meridian
                                                            and Price Waterhouse.
SeamGas CSG fields operated by WestSide,
having acted as Manager Seamgas from 1999
to 2002 at the Moura Mine then operated
under joint venture by Peabody Mitsui.
Julie is also a Director of Powerlink and a
Queensland Resource Industry Ambassador.




Page 21   WestSide Corporation Limited Annual Report 2010
   COMMUNITY
   STANDARDS




Building a sustainable business in coal seam gas exploration and          Access routes are also planned to minimise disruption to the local
production demands a proactive recognition of the breadth of              agricultural operations and, in many cases, improve the infrastructure
stakeholder interests in the Company’s operations. WestSide is            available for use by the landowner.
committed to satisfying ever increasing corporate and community
                                                                          WestSide continues to conduct its operations with a view to having
standards in this area. A key feature of WestSide’s operational ethos
                                                                          a long and collaborative relationship with the landowners and
is to engage with its stakeholders to optimise results for all parties.
                                                                          this commitment will be reflected as WestSide moves to increase
Traditional Owners                                                        production from the Meridian SeamGas CSG fields through the
                                                                          addition of new wells.
From the very beginning of its operations, WestSide has engaged the
assistance of Aboriginal parties representing the Traditional Owners      Meridian, Australia’s first producing CSG field, was established in the
of the land on which it operates. Representatives of the Birri People     late 1990’s so surrounding landholders have had an opportunity to
and the East Comet / West Dawson People have conducted site               gain a great deal of experience operating alongside the industry.
clearances prior to and during earthworks at the Tilbrook and Paranui
                                                                          Health and Safety
pilots and at Mount Saint Martin.
                                                                          WestSide operations are conducted in line with the underlying
An extensive Cultural Heritage Management Plan will be developed
                                                                          philosophy that all occupational injury and harm is avoidable.
in consultation with the Traditional Owners in conjunction with any
future Petroleum Lease application.                                       Members of the Company’s operational team have exerted
                                                                          considerable effort again during the past year in implementing and
WestSide is committed to ongoing communications and consultation
                                                                          enforcing site safety procedures for WestSide’s employees, joint
with Traditional Owners in all the areas in which it operates.
                                                                          venture personnel and contractors.
Landholders                                                               WestSide’s safety and emergency management policies and plans
The landholders in our operational areas typically have a long history    meet regulatory and community standards and remain a key focus of
of operations on their properties, sometimes spanning generations.        our operations team.
Their agricultural activities range from grazing to intensive cropping.   There were no reportable treatment incidents at any WestSide
WestSide’s goal has been to work constructively and proactively with      operations during the year.
landholders to minimise the impact on their livelihood and lifestyle.
For example, well sites are selected in consultation with
the landowner.




                                                                                               WestSide Corporation Limited Annual Report 2010   Page 22
Meridian SeamGas was established in the late 1990’s and has since established a history of coexistence with agricultural production.




Environment                                                              WestSide is generally supportive of these initiatives and has been
                                                                         working closely with the Queensland Government to put in place
Environmental Authorities have been granted by the Environmental         monitoring and reporting systems which will provide relevant
Protection Agency to conduct activities at ATP 688P and ATP 769P.        operational information transparently and in a timely manner.
Operations on these tenements have been conducted in accordance
with these authorities.                                                  Water has emerged as a significant issue for the CSG producers in
                                                                         the Surat Basin to the south of WestSide’s Bowen Basin tenements.
The Company has also been granted Environmental Authorities to
conduct exploration activities on its new Galilee Basin tenements        However, production testing has indicated that water production
ATP 974P and ATP 978P where operations have yet to commence.             rates at both Paranui and Tilbrook will be relatively low compared to
                                                                         those from well-publicised CSG operations in the Surat Basin.
Since taking over the operatorship of the Meridian SeamGas CSG
fields and infrastructure assets in July 2010, WestSide has completed     There is currently ample water storage capacity for the production
an initial environmental audit and started preparing a comprehensive     and testing planned for the foreseeable future. WestSide also
Environmental Management Plan and Water Management Plan in               anticipates that any additional water generated as a result of the
accordance with new regulatory requirements.                             Meridian SeamGas fields’ continued development may be taken
                                                                         by nearby users.
Over the past 12 months the CSG industry has witnessed a range
of Queensland Government initiatives to strengthen the State’s           Significantly, the amount of water produced by Meridian SeamGas
regulatory and compliance regime in response to public concerns          CSG operations is very low compared to the volumes associated with
about a range of safety and environmental issues.                        CSG extraction in the Surat Basin.




Page 23   WestSide Corporation Limited Annual Report 2010
       ANNUAL
       FINANCIAL
       REPORT
       For the year ended 30 June 2010
       WestSide Corporation Limited
       ABN 74 117 145 516




Directors’ Report                                                                25
Auditor’s Independence Declaration                                               37
Consolidated Statement of Comprehensive Income                                   38
Consolidated Balance Sheet                                                       39
Statement of Changes in Equity                                                  40
Cash Flow Statement                                                              41
Notes to the Financial Statements                                               42
Directors’ Declaration                                                           72
Audit Report                                                                     73
Shareholder Information                                                          75
Corporate Governance Statement                                                   77



                            WestSide Corporation Limited Annual Report 2010   Page 24
     Directors’ Report
     30 June 2010
     WestSide Corporation Limited



     Your Directors present their report on the Consolidated Entity (referred to hereafter as the Group) consisting of WestSide Corporation Limited (the
     Company) and the entities it controlled at the end of, or during, the year ended 30 June 2010.

     Directors
     The following persons are Directors of WestSide Corporation Limited at the date of this report. The number of ordinary shares and options in which the
     Directors hold a relevant interest, are:

     Director                                        Period as Director          Ordinary Shares              Incentive Options
     A Karoll (Chairman)                          Whole financial year                  17,312,770                       310,000
     J Clarke                                       From 28 May 2010                            –                              –
     A Gall                                       Whole financial year                  448,000                          300,000
     T Karoll                                     Whole financial year                   340,000                         200,000
     N Mitchell                                   Whole financial year                  5,621,338                               -
     R Neale                                        From 28 May 2010                            –                              -


     The qualifications, experience and special responsibilities of the Directors          pipelines, over 70 producing gas wells and several compressor stations.
     and Company Secretary are shown on pages 19 to 21 of the Annual Report.              The acquisition of an interest in these assets completed subsequent to
                                                                                          year end and will result in the rapid transformation of WestSide from
     Directorships of listed companies                                                    explorer to producer. $64 million was raised from share placements and a
                                                                                          1:1 entitlements issue to shareholders to cover the acquisition costs and
     Mr R Neale is a Director of New Hope Corporation Limited and Planet Gas
                                                                                          ongoing development of the gas fields.
     Limited. No other Director has been a Director of other listed companies
     at any time in the three years before 30 June 2010.                                  Two new exploration tenements were acquired through an agreement to
                                                                                          acquire Nazara Energy Pty Ltd. This transaction completed subsequent to
     Principal activities                                                                 year end.
     During the year the principal continuing activities of the Group consisted of        The Group continued its coal seam gas exploration and appraisal activities
     the exploration and appraisal for coal seam gas in the Bowen Basin in central        in Queensland through its exploration and appraisal program in Tilbrook
     Queensland.                                                                          (ATP 688P) and Paranui (ATP 769P).

     Dividends                                                                            During the year, commissioning was completed on a new drilling rig which
                                                                                          the Group has utilised to enhance the efficiency of its exploratory drilling
     During the financial year, no amounts have been paid or declared by way               operations.
     of dividend (2009: nil). No dividend will be recommended by the Directors
     for declaration at the forthcoming Annual General Meeting.
                                                                                          Matters subsequent to the end of the financial year
     As a matter of policy, the Board will, to the extent that is prudent, pay            Effective 1 July 2010, the Group completed the acquisition of a 51% interest
     dividends from profits. The payment of dividends will be dependent on a               in the Dawson Seamgas gas fields in Queensland’s Bowen Basin. The
     number of factors including availability of profits, the Company’s Franking           financial effects of this transaction have not been brought to account
     Credit position, operating results, cash flow, financial and taxation                  at 30 June 2010. The Group paid $26.8 million to acquire the interest in
     positions, future capital requirements and other factors considered                  the assets. The acquisition cost will be disclosed as Non-current assets.
     relevant by the Board. In view of the expected capital requirements for              The Group provided bank guarantees totalling $5.02 million in respect
     future exploration, appraisal and development activity, payment of a                 of its obligations under a Co-Development Agreement and gas supply
     dividend would not be appropriate prior to establishing a long term profit            agreements. Cash of $5.02 million is held as security for this facility.
     stream which is capable of supporting both capital expenditure and                   On 29 September 2010, the Company issued 3,500,000 Ordinary Shares
     dividend distribution.                                                               to Director, Angus Karoll to acquire Nazara Energy Pty Ltd, a company
                                                                                          which holds a 100% interest in two newly-issued exploration tenements
     Review of operations                                                                 (ATP974P and ATP978P) in Queensland’s Bowen Basin. This transaction was
                                                                                          approved by the Company’s shareholders at the Annual General Meeting in
     Information on the operations and financial position of the Group and
                                                                                          November 2009.
     its business strategies and prospects is set out on pages 3 – 18 of this
     Annual Report.                                                                       No other matter or circumstance has arisen since 30 June 2010 that has
                                                                                          significantly affected, or may significantly affect:
     The operating loss after income tax for the Group amounted to
     $2,462,687 (2009: $3,185,071).                                                       (a)        the Group’s operations in future financial years, or
                                                                                          (b)        the results of those operations in future financial years, or
                                                                                          (c)        the Group’s state of affairs in future financial years.
     Significant changes in the state of affairs
     In December 2009, WestSide announced it would acquire a 51% interest
     in the Dawson Seamgas (subsequently renamed Meridian SeamGas)
     gas fields in Queensland’s Bowen Basin. The Meridian SeamGas fields
     produce approximately 4 Petajoules of gas per year and include two gas




Page 25   WestSide Corporation Limited Annual Report 2010
Likely developments and expected results of operations                        demonstrate a clear relationship between performance and remuneration;
Likely developments in the operations of the Group are described in the       and has regard to prevailing market conditions.
Annual Report on pages 13 to 16.                                              The Board, within the maximum amount approved by the shareholders
Further information on likely developments in the operations of the Group     from time to time, determines remuneration of Non-executive Directors
and the expected results of operations have not been included in this         with advice from independent experts where required. Currently Non-
annual financial report because the Directors believe it would be likely to    executive Directors receive $45,000 pa, with an additional $5,000 pa
result in unreasonable prejudice to the Group.                                payable for Committee members. The Chairman, while acting in a combined
                                                                              CEO role receives $45,000 pa in addition to the CEO remuneration.
Environmental regulation
                                                                              Remuneration and other terms of employment for the Chief Executive
Both State and Federal laws regulate the entity’s environmental
obligations. The Department of Environment and Resource Management            Officer and certain other senior executives are formalised in employment
has issued Environmental Authorities for each exploration tenement.           contracts. Remuneration packages are set at levels that are intended
These authorities are relatively prescriptive in regard to environmental      to attract and retain executives capable of managing the Company’s
protection. The Group operated in full compliance with all local and          operations. The remuneration packages can include various components:
state legislation governing the environmental management of its gas           fixed remuneration; short term incentives (cash bonus linked to key
exploration activities during 2010. No Government agency has notified the      performance indicators or company performance generally); and long-
Company of any environmental breaches during the period ended 30 June         term equity-based incentives. The incentive components are structured to
2010. Further information is presented at page 23 of the Annual Report.       align executive reward with the achievement of strategic objectives and
Greenhouse gas and energy data reporting requirements                         the creation of shareholder value.

The Group has registered under the National Greenhouse and Energy             The key performance indicators (KPIs) and other targets are reviewed
Reporting Act 2007, and has systems and processes in place for the            at least annually to ensure that they remain relevant and appropriate,
collection and calculation of the data required to comply with the Act.       and may be varied to ensure that the benefits offered to each executive
                                                                              to incentivise performance and achievement are consistent with the
Meetings of Directors                                                         Company’s goals and objectives. In the initial years of the Company’s
The numbers of meetings of the Company’s Board of Directors and of            operations, short term KPIs are focussed on growth of Group assets,
each Board Committee held during the year ended 30 June 2010, and the         including identifying and acquiring new assets and the exploration and
numbers of meetings attended by each Director were:                           appraisal activities designed to achieve certification of sufficient gas
                                                                              reserves to underwrite sales contracts or downstream development. Key
                                                     Audit and Compliance
   Director             Board meetings                                        performance indicators are generally set so that targets can be measured
                                                     Committee meetings
                                                                              objectively, thus allowing simple and unambiguous assessment of
                       A                H               A               H
                                                                              achievement. A component of the short term incentive may be linked
J Clarke               -                1               *               *     more generally to the Company’s performance during the period to
A Gall                 8                8               2               2     provide further alignment between an executive’s performance and the
A Karoll               8                8               *               *     overall goals of the Company.
T Karoll               8                8               2               2
                                                                              Long term incentives can take the form of Incentive Options through the
N Mitchell             8                8               *               *
                                                                              WestSide Director and Employee Incentive Option Plan, grants of Ordinary
R Neale                1                1               *               *
                                                                              Shares or Performance Rights in accordance with the WestSide Employee
A Attended                                                                    Performance Rights Plan. Senior employees may be offered Incentive
H Number of meetings held during the time the Director held office or was a
                                                                              Options with exercise prices approximating the share price at the time
  member of the Board or Committee during the year.
* Not a member of the relevant Committee                                      each employee commences service. The Incentive Options do not vest
                                                                              for a significant period (up to three years in the case of Incentive Options
Retirement, election and continuation in office of Directors                  issued since 2007) so as to encourage long-term commitment by staff.
Mr J Clarke and Mr R Neale were appointed as Directors on 28 May              Long term value is thus linked to the increase in share value, aligning
2010, and in accordance with the Constitution, retire as Directors at the     performance with shareholders’ interests. In 2009, Ordinary Shares
forthcoming Annual General Meeting and, each being eligible, offers           were issued to a number of new employees as a sign-on incentive, with
himself for re-election.                                                      disposal restrictions to encourage commitment by staff.

Mr A Gall is the Director retiring by rotation who, being eligible, offers    In response to changes made to the taxation of employee equity
himself for re-election at the forthcoming Annual General Meeting.            incentives, a new Employee Performance Rights Plan was introduced
                                                                              in early 2010. As contractual obligations expire it is anticipated that the

Remuneration Report                                                           Performance Rights Plan will form the vehicle for all future employee
                                                                              equity incentives. Performance Rights issued in 2010 have a number of
The information provided in this Remuneration Report has been audited as      vesting conditions to encourage performance and commitment by staff
required by section 308(3C) of the Corporations Act 2001.                     and to align performance with shareholder interests. Vesting conditions
                                                                              include corporate targets for certification of additional gas reserves and
A Principles used to determine the nature and                                 assessment of individual performance. Each Performance Right that vests
  amount of remuneration                                                      converts into one ordinary share in the Company and is then subject to
The Board is responsible for setting a remuneration policy which              further disposal restrictions.
enables the Group to attract and retain valued employees; motivate            An annual allocation may be made to staff on similar terms to provide an
senior executives and executive Directors to pursue long term growth;         ongoing long-term incentive.



                                                                                                      WestSide Corporation Limited Annual Report 2010   Page 26
          Directors’ Report – Remuneration Report (cont’d)
          30 June 2010
          WestSide Corporation Limited



          The Company’s exploration and appraisal operations are expected to                                                                                                                      Company first listed on ASX, the Company’s share price has outperformed
          deliver results over a period of time, such that the relationship between                                                                                                               the ASX All Ordinaries Index, despite decreasing by 13% from 50 cents
          the Company’s remuneration policy and the Company’s short term                                                                                                                          at the time of the Initial Public Offering to 44 cents at 31 July 2010. This
          performance may not be immediately apparent on a year-to-year basis.                                                                                                                    compares favourably with the ASX All Ordinaries Index which decreased
          This has been the case in relation to earnings, as the Company does not                                                                                                                 from 5,502 to 4,507, a decline of 18% over the same period.
          expect to record a profit until gas reserves can be certified, developed and
          sold. Following the acquisition of an interest in the producing Meridian                                                                                                                          WestSide Market Capitalisation
          SeamGas gas fields after the end of the financial year, performance                                                                                                                       120.0
          targets for the forthcoming year will include production-related targets.
                                                                                                                                                                                                  100.0

          The Company’s performance during the year ended 30 June 2010 was
                                                                                                                                                                                                  80.0
          centred on the successful acquisition of a 51% interest in the producing




                                                                                                                                                                                         $ mill
          Dawson Seamgas (now renamed Meridian SeamGas) gas fields in                                                                                                                              60.0

          Queensland’s Bowen Basin. This acquisition was a significant achievement                                                                                                                 40.0
          for a Company of WestSide’s size – the company-transforming
          transaction will see WestSide producing gas from July 2010 and required                                                                                                                 20.0

          a major capital-raising to fund the acquisition and future development                                                                                                                     –
          work. In addition, the Company secured interests in new gas exploration



                                                                                                                                                                                                                   Mar 07

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                                                                                                                                                                                                                                              Sep 07

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                                                                                                                                                                                                                                                                                                                                               May 09

                                                                                                                                                                                                                                                                                                                                                        Jul 09

                                                                                                                                                                                                                                                                                                                                                                 Sep 09

                                                                                                                                                                                                                                                                                                                                                                          Nov 09

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                                                                                                                                                                                                          Jan 07




                                                                                                                                                                                                                                     Jul 07




                                                                                                                                                                                                                                                                                                                                                                                                               Jul 10
          tenements in the Galilee Basin and completed several new exploration
                                                                                                                                                                                                                                                                                                       MONTH
          and appraisal wells in its existing tenements. In the 42 months since the
                                                                                                                                                                                                  Of particular note is the rapid growth of the Company during the year. The
                         WCL vs All Ordinaries Index
                                                                                                                                                                                                  Company’s market capitalisation has almost doubled from $57 million at
                  0.9                                                                                                                                             10,000                          30 June 2009 to $107 million at the end of the financial year.
                                                                                                                   WCL
                  0.8                                                                                                                                             9,000
                                                                                                                   All Ordinaries Index                                                           The acquisition of the Meridian SeamGas gas fields and two Galilee Basin
                  0.7                                                                                                                                             8,000

                                                                                                                                                                  7,000                           exploration tenements and the successful raising of $64 million in capital
                  0.6
                                                                                                                                                                                                  were significant achievements for the Company during the year, and this
                                                                                                                                                                           Index value
    Share price




                                                                                                                                                                  6,000
                  0.5
                                                                                                                                                                  5,000                           was reflected in the award of between 50% and 100% of the maximum
                  0.4
                                                                                                                                                                  4,000                           short term incentive applicable to overall company performance for the
                  0.3
                                                                                                                                                                  3,000                           year (representing 50% of maximum short term incentives). Of the
                  0.2                                                                                                                                             2,000                           maximum 50% of total short term incentive entitlements attributable to
                  0.1                                                                                                                                             1,000                           achievement of personal KPIs, employees received between nil and 100%
                   –                                                                                                                                              –                               of their maximum entitlement, depending on individual performance.
                        Jan 07


                                 Apr 07


                                          Jul 07


                                                   Oct 07


                                                            Jan 08


                                                                     Apr 08


                                                                              Jul 08


                                                                                        Oct 08


                                                                                                 Jan 09


                                                                                                          Apr 09


                                                                                                                   Jul 09


                                                                                                                              Oct 09


                                                                                                                                       Jan 10


                                                                                                                                                Apr 10


                                                                                                                                                         Jul 10




                                                                                       MONTH




          B Summary of remuneration
          Amounts of remuneration
          Details of the nature and amount of each element of remuneration of each Director and the other key management personnel (as defined in AASB 124
          Related Party Disclosures) and specified executives of WestSide Corporation Limited and the WestSide Corporation Limited Group are set out in the
          following tables.
          Non-executive Director Remuneration
          Details of the remuneration of each Non-executive Director of the Company and Group are set out in the following table.

                                                                                                                     Short-term employee                                                          Post-employment                                                                 Share-based
                   2010
                                                                                                                           benefits                                                                    benefits                                                                      payments
                                                                                                                            Cash salary / fees                                                      Superannuation                                                                                  Options(1)                                                                         Total
            Name                                                                                                                             $                                                                   $                                                                                        $                                                                               $
            J Clarke(2)                                                                                                                              4,243                                                                                    -                                                                          -                                                            4,243
            A Gall                                                                                                                              45,872                                                                               4,128                                                             24,321                                                                       74,321
            T Karoll                                                                                                                            45,872                                                                               4,128                                                                    17,931                                                                67,931
            N Mitchell                                                                                                                          41,284                                                                               3,716                                                                               -                                                         45,000
            R Neale(3)                                                                                                                              3,893                                                                             350                                                                                -                                                            4,243
            Total 2010                                                                                                                          141,164                                                                         12,322                                                               42,252                                                                        195,738

          (1) Full details of Incentive Options are set out later in this report in section C (Details of remuneration of Directors and other key management personnel).
          (2) Director’s fees for Mr J Clarke are paid to Infrastructure Capital Group Limited. Mr Clarke was appointed as Director on 28 May 2010.
          (3) Mr Neale was appointed as Director on 28 May 2010.




Page 27                 WestSide Corporation Limited Annual Report 2010
                                                          Short-term employee                   Post-employment                    Share-based
   2009
                                                                benefits                             benefits                         payments
                                                             Cash salary / fees                  Superannuation                          Options(1)                       Total
Name                                                                          $                               $                                $                             $
K Farrell(2)                                                             35,500                                    -                             -                      35,500
A Gall                                                                    41,284                               3,716                      20,500                        65,500
T Karoll                                                                  41,284                               3,716                       16,897                        61,897
               (3)
N Mitchell                                                                22,362                              2,013                                  -                   24,375
Total 2009                                                              140,430                              9,445                         37,397                       187,272
(1) Full details of Incentive Options are set out later in this report in section C (Details of remuneration of Directors and other key management personnel).
(2) Director’s fees for K Farrell are paid to PT Bumi Resources Tbk. Mr Farrell resigned on 15 May 2009.
(3) Mr N Mitchell was appointed as a Non-executive Director on 15 December 2008.

Remuneration of other key management personnel
Details of the remuneration of each of the Company’s and Group’s key management personnel, excluding Non-executive Directors whose remuneration is
disclosed above, for the year ended 30 June 2010 are set out in the following table. This includes all of the executives of the Company and Group.

                                                                                                   Post-employment
   2010                                             Short-term employee benefits                                                   Share-based payments
                                                                                                       benefits
                                             Cash salary /                                                                                       Performance
                       Remuneration                  fees       Cash bonus             Other       Superannuation                 Options (1)        Rights (1)               Total
Name                         period                      $               $                 $                    $                         $                 $                    $
Executive Directors
A Karoll                     Full year (2)        293,935                   –         30,500                   26,427                25,046                    –          375,908

Other key management personnel

P Dingle             From 21 June 2010               6,493                  –               –                     584                      –                598               7,675
D Galvin                      Full year            184,521            25,393           5,000                   25,190                 37,365             15,030           292,499
A Knight             From 19 April 2010             26,817                  –               –                  22,414                      –              8,487              57,718
S Mewing                      Full year           263,300            36,234            5,000                  26,958                  33,154             18,485             383,131

Other Group executives
K Potter (3)                  Full year            141,555                  –        118,959                           –              15,923                   –           276,437
Total 2010                                        916,621            61,627          159,459                  101,573               111,488              42,600         1,393,368
(1) Full details of Incentive Options and Performance Rights are set out later in this report in section C (Details of remuneration of Directors and other key management
    personnel). Where Option exercise prices were altered during the year, the remuneration attributable to Options above includes the increase in fair value of the Options as set
    out in more detail – section D (Share-based remuneration).
(2) A Karoll, acted in an executive role as the Company’s Chairman and Acting Chief Executive Officer for the full year. Mr Karoll’s cash salary includes $41,284 of Directors’ fees in
    respect of his position as Chairman and $252,351 in respect of his executive role.
(3) Mr K Potter is employed by PT Seamgas Indonesia, the joint venture entity in which WestSide Corporation Limited has a 50% interest. His short term and post employee
    benefits are disclosed at 50% their actual value being WestSide’s contribution to these costs.




                                                                                                                            WestSide Corporation Limited Annual Report 2010           Page 28
     Directors’ Report – Remuneration Report (cont’d)
     30 June 2010
     WestSide Corporation Limited



                                                                                                                     Post-
                                                                    Short-term employee
          2009                                                                                                    employment                 Share-based payments
                                                                          benefits
                                                                                                                    benefits
                                                      Cash salary /
                             Remuneration                     fees         Cash bonus                Other      Superannuation             Options(1)             Shares                 Total
     Name                          period                         $                 $                    $                   $                    $                    $                    $
     Executive Directors
     M Cavell               To 3 Sept 2008 (2)               79,060                    -                   -                6,440             (47,068)                   -             38,432
                                                (3)
     A Karoll                       Full year               265,916                    -            23,867                        -            21,080                    -           310,863

     Other key management personnel
     L Brown              To 4 August 2008                   26,092                    -                   -                 1,434                    -                      -         27,526
     D Galvin                        Full year              180,045              21,071              2,500                  23,931             40,139                        -        267,686
     G Hogarth (4)           To 13 Oct 2008                  171,500                   -                   -                      -                   -                      -        171,500
     S Mewing (5)         From 13 Oct 2008                   185,613                   -             2,500                  17,705             22,825                51,000          279,643

     Other Group executives
     K Potter (6)                   Full year                147,881                   -             87,061                       -              9,175                       -         244,117
     Total 2009                                           1,056,107              21,071            115,928                 49,510              46,151               51,000          1,339,767
     (1) Full details of Incentive Options are set out later in this report in section C (Details of remuneration of Directors and other key management personnel). Remuneration in the
         form of Options includes negative amounts for Options forfeited during the year.
     (2) Mr Cavell’s cash salary includes $9,633 of Directors’ fees in respect of his position as Chairman, and $69,427 in respect of his executive role. Mr Cavell resigned on 3 September 2008.
     (3) A Karoll, acted in an executive role as the Company’s Chairman and Acting Chief Executive Officer following the resignation of M Cavell on 3 September 2008. Mr Karoll’s
         cash salary includes $32,250 of Directors’ fees in respect of his position as Chairman, $5,166 of Directors’ fees while Non-executive Director and $228,500 in respect of his
         executive role.
     (4) Mr G Hogarth’s remuneration was paid by way of consultancy fees to Hogarth Project Management Services Pty Ltd (HPMS), a company controlled by Mr Hogarth. At 30 June,
         nil (2008: $41,324) was owing to HPMS.
     (5) Mr S Mewing was appointed to the position of Chief Operating Officer on 13 October 2008.
     (6) Mr K Potter is employed by PT Seamgas Indonesia, the joint venture entity in which WestSide Corporation Limited has a 50% interest. His short term and post employee
         benefits are disclosed at 50% their actual value being WestSide’s contribution to these costs.




Page 29    WestSide Corporation Limited Annual Report 2010
C Details of remuneration of Directors and other key management personnel
Non-executive Directors
On appointment to the Board, all Non-executive Directors agree to terms of appointment as set out in a letter of appointment. The letter sets out the
remuneration applicable and other matters such as general Directors’ duties, compliance with the Company’s Corporate Governance Policies, access to
independent professional advice and confidentiality obligations.
Non-executive Directors’ fees and the Chairman’s fees are $45,000 pa, inclusive of compulsory superannuation where applicable. Committee members
receive an additional $5,000 pa. There are no termination payments applicable.
Directors who held positions during the process of raising capital from cornerstone investors and from the Initial Public Offering in the year ended 30 June
2007 received Incentive Options. Further details are set out in section D of this report (Share-based compensation).
Other key management personnel
Remuneration and other terms of employment for the Chief Executive Officer and the other key management personnel are generally by way of employment
contracts. These agreements may provide for the provision of performance-related cash bonuses and Incentive Options. Subsidised car parking has been
provided for key management personnel since December 2008. Major provisions of the agreements relating to remuneration are set out below.

A Karoll, Chairman and Acting Chief Executive Officer
•   Commenced as Acting Chief Executive Officer on 3 September 2008 for an initial three month period, or up to the date of the appointment of a
    permanent Chief Executive Officer (whichever occurs first). The term has subsequently been renewed on a rolling basis. A permanent Chief Executive
    Officer has been engaged and commenced on 30 August 2010.
•   Remuneration package of $276,750 per year in the capacity as Acting Chief Executive Officer in addition to standard Chairman’s fees of $45,000 per
    annum and an allowance of $500 per week as compensation for living away from home whilst performing his duties.

P Dingle, Moura Area Manager
•   Commenced 21 June 2010
•   Base remuneration package, inclusive of superannuation of $230,000 per annum, reviewed annually and a $2,500 per month allowance for living away
    from home whilst performing his duties (from August 2010).
•   Employment can be terminated with one month notice by either party, or immediately by the Company in a number of circumstances including serious
    misconduct, wilful neglect of duties, bankruptcy or criminal conviction.
•   Short-term annual performance bonus of up to 15% of annual base salary earned upon assessment of overall personal performance and general
    company performance. No bonus is available for the year ended 30 June 2010.
•   Grant of 110,000 Performance Rights (to be issued in October 2010). Of these, 80,000 will vest after 31 December 2012 if still employed at that
    time and up to 30,000 will vest after 31 December 2010 dependent on the employee satisfying various vesting conditions tied to overall personal
    performance and general company performance. Further details of Performance Rights granted are set out in section D of this report (Share-based
    compensation).

D Galvin, Chief Financial Officer and Company Secretary
•   Base remuneration package, inclusive of superannuation of $206,664 per annum, reviewed annually.
•   Short-term performance bonus of up to 15% of annual base salary earned upon assessment of overall personal performance and general company
    performance by 30 June 2010. In recognition of performance during the year, 100% of the bonus was awarded, resulting in payment of a bonus of
    $28,440 in September 2010.
•   Grant of 410,000 Performance Rights in March 2010. Of these, 350,000 will vest after 31 December 2012 if still employed at that time and up to 60,000
    will vest after 31 December 2010 dependent on the employee satisfying various vesting conditions tied to overall personal performance and general
    company performance. Further details of Performance Rights granted are set out in section D of this report (Share-based compensation).

A Knight, Exploration Manager
•   Commenced 19 April 2010
•   Base remuneration package, inclusive of superannuation of $240,000 per annum, reviewed annually.
•   Employment can be terminated with three months notice by the employee and one month’s notice by the Company, or immediately by the Company in
    a number of circumstances including serious misconduct, wilful neglect of duties, bankruptcy or criminal conviction.
•   Short-term annual performance bonus of up to 15% of annual base salary earned upon assessment of overall personal performance and general
    company performance. No bonus is available for the year ended 30 June 2010.
•   Grant of 270,000 Performance Rights (to be issued in October 2010). Of these, 200,000 will vest after 31 December 2012 if still employed at that
    time and up to 70,000 will vest after 31 December 2010 dependent on the employee satisfying various vesting conditions tied to overall personal
    performance and general company performance. Further details of Performance Rights granted are set out in section D of this report (Share-based
    compensation).




                                                                                                           WestSide Corporation Limited Annual Report 2010     Page 30
     Directors’ Report – Remuneration Report (cont’d)
     30 June 2010
     WestSide Corporation Limited



     S Mewing, Chief Operating Officer
     •    Fixed term of three years commencing 13 October 2008.
     •    Base remuneration package, inclusive of superannuation of $286,997 per annum, reviewed annually.
     •    Employment can be terminated with three months notice by either party, or immediately by the Company in a number of circumstances including
          serious misconduct, wilful neglect of duties, bankruptcy or criminal conviction.
     •    Awarded a cash bonus of $39,495 paid in August 2010 in recognition of performance during the year to 30 June 2010.
     •    Grant of 483,000 Performance Rights in March 2010. Of these, 400,000 will vest after 31 December 2012 if still employed at that time and up to
          83,000 will vest after 31 December 2010 dependent on the employee satisfying various vesting conditions tied to overall personal performance and
          general company performance. Further details of Performance Rights granted are set out in section D of this report (Share-based compensation).
     •    Additional long term incentives of up to 100,000 Ordinary Shares may be offered in the Company subject to the discretion of the Board and
          consideration of performance targets and the Company’s financial position.

     K Potter, President Director – PT Seamgas Indonesia
     •    Fixed term employment agreement of three years commencing 1 July 2008.
     •    Mr Potter is seconded to joint venture entity, PT Seamgas Indonesia.
     •    The base remuneration package of USD $221,400 pa is paid by PT Seamgas. Annual remuneration review with minimum increase equal to CPI. PT
          Seamgas Indonesia also provides a number of benefits to Mr Potter consistent with his expatriate status in Indonesia: living expenses including
          accommodation, motor vehicle and utilities to a maximum of USD 6,150 per month; school fees up to USD 20,500 per child per annum; and an annual
          home leave travel allowance of USD 18,450.
     •    Employment can be terminated with three months written notice by Mr Potter or two months notice by WestSide. If terminated by WestSide, then
          a termination payment equal to 12 or 18 month’s remuneration must be paid (depending on the circumstances of termination) and the costs of Mr
          Potter’s relocation from Jakarta must be reimbursed. Employment can be terminated immediately by the Company in a number of circumstances
          including serious misconduct, wilful neglect of duties, bankruptcy or criminal conviction.
     •    Long term incentives consisting of 100,000 Incentive Options may be offered annually subject to the discretion of the Board under the conditions as
          may apply at the time of issue and the terms of the Director’s and Employee’s Incentive Option Plan. 100,000 Incentive Options were issued during the
          financial year. Further details of Incentive Options granted are set out in section D of this report (Share-based compensation).

     D Share based compensation
     Ordinary Shares
     No Ordinary shares were issued to Key Management Personnel during the year. During the previous financial year, as an incentive to join the Company,
     Ordinary Shares were issued to a new executive. The amount disclosed as remuneration relating to shares in the tables relating to the previous financial
     year ending 30 June 2009 in section B “Summary of Remuneration” of this report is the assessed fair value at grant date (25 September 2008) of the
     shares granted to the specified executive, allocated over the probationary period of service. The fair value was fully-recognised in the year ended 30 June
     2009 and no further amounts will be payable or recognised in future financial periods in respect of this grant.
     Options
     The amounts disclosed for remuneration relating to options in the tables in section B “Summary of Remuneration” of this report are the assessed fair value
     at grant date of the Incentive Options granted to Directors and specified executives, allocated equally over the period of service to which the grant relates
     up to the actual or expected vesting date. The fair value of options are determined using a Black-Scholes–Merton option pricing model that takes into
     account the exercise price, expected term of the options, the share price at grant date, expected price volatility of the underlying share and the risk-free
     interest rate for the expected term of the option.
     Incentive Options were granted by WestSide Corporation Ltd to one Group executive during the year under the WestSide Director and Employee Incentive
     Option Plan to align his interests with that of shareholders. Options were granted under the plan for no consideration.
     The Incentive Options cannot be exercised until their vesting date, and must be exercised before their expiry date. Incentive Options lapse 90 days after
     an employee/contractor ceases to be engaged by the Company except as indicated below. If, during the life of the Incentive Options, the Company makes a
     bonus issue to its shareholders, the option holder will be entitled, upon later exercise of that option, to receive additional shares as if the option holder had
     exercised the option prior to the record date for the bonus issue. The rights of option holders will also be changed to the extent necessary to comply with
     the ASX Listing Rules applying to a reorganisation of capital. The Board retains the discretion to waive exercise conditions including where there is a change
     of control of the Company.




Page 31   WestSide Corporation Limited Annual Report 2010
The terms and conditions of each grant of options affecting remuneration in the previous, this or future reporting periods are as follows:

                                                                                                             Value per option                Date exercisable
Grant date                                         Expiry date                Exercise price                    at grant date                  (Vesting date)
16 November 2006                              10 January 2013                       $0.3614                           $0.284           After 10 January 2010*
27 February 2007                              10 January 2013                       $0.3614                           $0.205           After 10 January 2010*
18 April 2007                                 10 January 2013                       $0.3614                            $0.195          After 10 January 2010*
26 July 2007                                      30 June 2012                      $0.7714                           $0.372                  After 1 July 2010
14 November 2007                                  30 June 2012                      $0.7714                          $0.2015                  After 1 July 2010
2 May 2008                                        30 June 2013                     $0.4999                            $0.184                  After 1 July 2011
24 July 2008                                      30 June 2013                     $0.4999                             $0.313                 After 1 July 2011
25 September 2008                                 29 June 2013                      $0.3614                           $0.292                  After 1 July 2011
18 December 2008                                  29 June 2013                      $0.3614                            $0.162                 After 1 July 2011
29 January 2010                                   30 June 2013                     $0.4999                             $0.186                 After 1 July 2011
* These options vested during the financial year


The fair value of options granted are determined using a Black-Scholes-Merton option pricing model that takes into account the following variables:
•   grant date
•   share price at grant date
•   exercise price
•   term of the option – the estimated exercise date part way through the vesting period
•   expiry date
•   expected share price volatility
•   expected dividend yield
•   risk-free interest rate: the five year Australian Government Bond Rate as applicable at individual grant dates
The expected price volatility is based on the historic volatility of the Company’s share price and of a selection of junior coal seam gas exploration companies
(based on the expected term of the options).
Details of options over ordinary shares of the Company provided as remuneration to each Director of WestSide Corporation Limited and each of the other
key management personnel of the Parent Entity and Group are set out below. When exercisable, each option is convertible into one ordinary share of
WestSide Corporation Limited. Further information on the options is set out in Note 16(e) to the financial statements.

                                                                 Number of options granted during the year       Number of options which vested during the year
Name                                                                      2010                    2009                          2010                     2009
Directors of WestSide Corporation Limited
A Karoll                                                                     —                        –                     300,000                          —
T Gall                                                                       —                        –                     300,000                          —
T Karoll                                                                     —                        –                     300,000

Other key management personnel of the Group
D Galvin                                                                     —                  62,000                      300,000                          —
S Mewing                                                                     —                 300,000                             —                         —


Other Group executives
K Potter                                                               100,000                 300,000                             —                         —
* These options vested during the financial year

Alteration of Incentive Option terms
On 28 May 2010 the exercise price of all Incentive Options on issue were altered in accordance with ASX Listing Rules as a result of the 1:1 entitlements
issue of new shares. The market value of a share in the Company on 28 May 2010 was $0.44.
Apart from the alteration of the exercise price, the terms of the Incentives Options after the exercise price were unchanged.
The Incentive Options cannot be exercised until their vesting date, and must be exercised before their expiry date. All Incentive Options lapse 90 days
after an employee/contractor ceases to be engaged by the Company (except for options issued to K Potter). If, during the life of the Incentive Options, the
Company makes a bonus issue to its shareholders, the option holder will be entitled, upon later exercise of that option, to receive additional shares as if the
option holder had exercised the option prior to the record date for the bonus issue. The rights of option holders will also be changed to the extent necessary
to comply with the ASX Listing Rules applying to a reorganisation of capital. The Board retains the discretion to waive exercise conditions including where
there is a change of control of the Company.


                                                                                                                 WestSide Corporation Limited Annual Report 2010   Page 32
     Directors’ Report – Remuneration Report (cont’d)
     30 June 2010
     WestSide Corporation Limited



     The table below sets out the Incentive Options held by Directors and key management personnel which were impacted by the alteration of exercise price:

                                                                                                                                                   Increase in total fair value
                                                                             Number of Incentive Options                                          of options as a result of the
                                                                                                                                                           alteration
     Vesting date                                    1 July 2010            10 January 2010                 1 July 2011             1 July 2011
     Expiry date                                   30 June 2012             10 January 2013              29 June 2013            30 June 2013
     Original exercise price                               $0.91                      $0.50                     $0.50                 $0.638
     New exercise price                                 $0.7714                     $0.3614                   $0.3614                $0.4999
                                                      Number                       Number                   Number                  Number                                    $
     Directors of WestSide Corporation Ltd
     A Karoll                                            10,000                    300,000                           –                       –                          13,575
     A Gall                                                    –                   300,000                           –                       –                          13,425
     T Karoll                                                  –                   200,000                           –                       –                           8,950
     Other key management personnel
     D Galvin                                           45,000                     300,000                           –                62,000                            16,093
     S Mewing                                                  –                           –                300,000                          –                          13,425
     K Potter                                                  –                           –                         –              400,000                             12,860

     Performance Rights
     Under the new Employee Performance Rights Plan eligible employees were granted an allocation of Performance Rights, while new employees may
     be granted Performance Rights upon the commencement of service. These will vest upon completion of a specified minimum service period. A further
     allocation of Performance Rights will vest upon the achievement of various company and personal performance targets and service milestones.
     The new plan is designed to align the performance of employees with that of shareholders and to assist in the retention of experienced personnel.
     Each Performance Right that satisfies its vesting conditions can be converted to one ordinary share for nil consideration. Upon conversion, the issued
     ordinary shares will be subject to a holding lock until the earlier of seven years from grant, or cessation of employment.
     The Board retains the discretion to waive vesting conditions in certain instances where there is a takeover offer for the Company or other events such as a
     merger or scheme of arrangement.
     The amounts disclosed for remuneration relating to Performance Rights in the tables in section B “Summary of Remuneration” of this report are the
     assessed fair value at grant date of an underlying Ordinary Share in WestSide Corporation Ltd, adjusted to reflect the proportionate number of Performance
     Rights which are ultimately expected to satisfy their vesting conditions. The value is allocated equally over the period of service to which the grant relates
     up to the actual or expected vesting date.
     The terms and conditions of each grant of Performance Rights affecting remuneration in the previous, this or future reporting periods are as follows:

                                                                                                                          Value per right
     Date rights issued                                                             Expiry date                            at grant date             Vesting conditions
     29 March 2010                                                            31 December 2011                                     $0.54                      (1)
     29 March 2010                                                           31 December 2013                                      $0.54                     (2)
     5 March 2010 (3)                                                         31 December 2011                                    $0.475                      (1)
                      (3)
     5 March 2010                                                            31 December 2013                                     $0.475                     (2)
     11 May 2010 (3)                                                          31 December 2011                                     $0.53                      (1)
     11 May 2010(3)                                                          31 December 2013                                      $0.53                     (2)
     (1) Vest after 31 December 2010 to participants employed at that time at the discretion of the Board after considering company and personal performance to 31 December 2010.
     (2) Vest after 31 December 2012 if the participant is employed at that date.
     (3) These Performance Rights were granted during the financial year, but will not be issued until after the required probationary period of service has been completed.

     Details of Performance Rights of the Company provided as remuneration to each of the other key management personnel of the Parent Entity and Group
     are set out below. When the vesting conditions are satisfied, each Performance Right is convertible into one ordinary share of WestSide Corporation
     Limited. Further information on the Performance Rights is set out in Note 16(f) to the financial statements.


                                                                                                               Number of Performance Rights granted during the year
     Name                                                                                                                         2010                                2009
     Other key management personnel of the Group
     P Dingle                                                                                                                 110,000                                     –
     D Galvin                                                                                                                 410,000                                     –
     A Knight                                                                                                                 270,000                                     –
     S Mewing                                                                                                                 483,000         –


Page 33   WestSide Corporation Limited Annual Report 2010
E Additional information
Details of remuneration: cash and equity bonuses
For each cash bonus and grant of options and rights included in section B (Summary of remuneration) and section C (Details of remuneration of Directors and
other key management personnel) of this report, the percentage of the available bonus or grant that was paid, or that vested, in the financial year, and the
percentage that was forfeited because the person did not meet the performance criteria is set out below.

      2010                     Cash bonus                                                          Incentive Options and Rights(1)
                                                          Proportion of                                               Year in which
                                                          remuneration                                               options/rights          Maximum              Value of
                                                           consisting of      Year granted                                may vest           total value        options at
                            Paid         Forfeited       options/rights(3)    (year ending           Forfeited        (year ending           yet to vest(2)     grant date(4)
Name                          %                 %                     %           30 June)                  %              30 June)                    $                 $
Directors of WestSide Corporation Ltd
A Gall                          —                —                     33              2007                  —                  2010                    –           85,200
A Karoll                        —                —                      7             2008                   —                   2011                   6             2,015
                                                                                       2007                  —                  2010                    –           85,200
T Karoll                        —                —                    26               2007                  —                  2010                    –           56,800
Other key management personnel
P Dingle                        —                —                      8              2010                  —                  2013              42,173            42,400
                                                                                       2010                  —                   2011             15,529             15,900
D Galvin                     100                 —                     18              2010                  —                  2013             179,409           189,000
                                                                                       2010                  —                   2011             26,961            32,400
                                                                                      2009                   —                  2012               6,690             19,406
                                                                                      2008                   —                   2011                 32             16,740
                                                                                       2007                  —                  2010                    –           85,200
A Knight                        —                —                     —               2010                  —                  2013              91,188            95,000
                                                                                       2010                  —                   2011             28,574             33,250
Other Group executives
K Potter                        —                —                      7              2010                  —                  2012                9,166            18,600
                                                                                      2009                   —                  2012              27,298            55,200

(1) The Incentive Options and Performance Rights have a minimum value yet to vest of nil, because failure to meet the vesting conditions will result in forfeiture of the options
    or rights.
(2) The maximum total value of Incentive Options and Performance Rights yet to vest has been determined as that amount of the value at grant date (amended for any
    subsequent fair value increment resulting from any alteration to the option terms) that is yet to be expensed.
(3) The proportion of remuneration consisting of Incentive Options and Performance Rights is based on the value of options and rights expensed during the financial year ending
    30 June 2010.
(4) The value at grant date is calculated as described in section D (Share-Based Compensation).




                                                                                                                        WestSide Corporation Limited Annual Report 2010         Page 34
     Directors’ Report – Remuneration Report (cont’d)
     30 June 2010
     WestSide Corporation Limited



             2009                     Cash bonus                                                                 Incentive Options(1)
                                                                 Proportion of                                                Year in which
                                                                 remuneration                                                  options may           Maximum              Value of
                                                                  consisting of      Year granted                                      vest          total value        options at
                                   Paid         Forfeited              options(3)    (year ending           Forfeited         (year ending           yet to vest(2)     grant date(4)
     Name                            %                 %                     %           30 June)                  %               30 June)                    $                 $
     Directors of WestSide Corporation Ltd
     M Cavell                         —                 —                     12             2007                   —                   2010 (5)               —            85,200
     A Gall                           —                 —                     31             2007                   —                   2010              10,896            85,200
     A Karoll                         —                 —                      7             2008                   —                    2011                582               2,015
                                                                                             2007                   —                   2010              10,896            85,200
     T Karoll                         —                 —                     27             2007                   —                   2010               8,981            56,800
     Other key management personnel
     L Brown                          —               100                     —              2008                 100                   2011(5)                —             70,680
     D Galvin                        85                 15                    15             2009                   —                   2012               9,710             19,406
                                                                                             2008                   —                    2011              4,475             16,740
                                                                                             2007                   —                   2010              13,809            85,200
     S Mewing                         —                 —                     8              2009                   —                   2012              64,175             87,000
     Other Group executives
     K Potter                         —                 —                     4              2009                   —                   2012             36,850              55,200

     (1)   The Incentive Options have a minimum value yet to vest of nil, because failure to meet the vesting conditions will result in forfeiture of the options.
     (2)   The maximum total value of Incentive Options yet to vest has been determined as that amount of the value at grant date that is yet to be expensed.
     (3)   The proportion of remuneration consisting of Incentive Options is based on the value of options expensed during the financial year ending 30 June 2009.
     (4)   The value at grant date is calculated as described in section D (Share-Based Compensation).
     (5)   L Brown and M Cavell resigned from their positions during the year. The value of options that lapsed during the year because the vesting condition was not satisfied was
           $15,390 and $29,400 for Mr Brown and Mr Cavell respectively. The value is determined at the time of lapsing, but assuming the condition was satisfied.


     Changes in key management personnel since 30 June 2010
     On 30 August 2010, Dr J Beeby was appointed as Chief Executive Officer and Mr A Karoll ceased acting in that role.

     Shares under option
     Unissued ordinary shares of WestSide Corporation Ltd under option at the date of this report are as follows:

     Date options issued                                     Vesting date                Expiry date        Issue price of shares        Number under option                 Note
     16 November 2006                                   10 January 2010              10 January 2013                       $0.3614                    1,100,000                 (i)
     10 May 2007                                        10 January 2010              10 January 2013                       $0.3614                      140,000                 (i)
     28 August 2007                                            1 July 2010              30 June 2012                       $0.7714                       60,000                 (i)
     14 November 2007                                          1 July 2010              30 June 2012                       $0.7714                       10,000                 (i)
     25 August 2008                                             1 July 2011             30 June 2013                      $0.4999                        98,000                 (i)
     25 August 2008                                             1 July 2011             30 June 2013                      $0.4999                      300,000                  (ii)
     19 May 2009                                                1 July 2011             29 June 2013                       $0.3614                     500,000                  (i)
     29 January 2010                                            1 July 2011             30 June 2013                      $0.4999                       100,000                 (ii)

     (i) Incentive Options: The Incentive Options cannot be exercised until their vesting date, and must be exercised before their expiry date. All Incentive Options lapse 90 days after
         an employee/contractor ceases to be engaged by the Company. If, during the life of the Incentive Options, the Company makes a bonus issue to its shareholders, the option
         holder will be entitled, upon later exercise of that option, to receive additional shares as if the option holder had exercised the option prior to the record date for the bonus
         issue. The rights of option holders will also be changed to the extent necessary to comply with the ASX Listing Rules applying to a reorganisation of capital. The Board retains
         the discretion to waive exercise conditions including where there is a change of control of the Company.

     (ii) Incentive Options: The Incentive Options cannot be exercised until their vesting date, and must be exercised before their expiry date. All Incentive Options lapse 90 days
          after an employee ceases to be engaged by the Company where employment was terminated by way of summary dismissal. If, during the life of the Incentive Options, the
          Company makes a bonus issue to its shareholders, the option holder will be entitled, upon later exercise of that option, to receive additional shares as if the option holder
          had exercised the option prior to the record date for the bonus issue. The rights of option holders will also be changed to the extent necessary to comply with the ASX Listing
          Rules applying to a reorganisation of capital. The Board retains the discretion to waive exercise conditions including where there is a change of control of the Company.




Page 35    WestSide Corporation Limited Annual Report 2010
Insurance of officers
Insurance and indemnity arrangements are in place for officers of the Company. The Company paid an insurance premium of $43,435 (2009: $44,558) in
respect of Directors and Officers Liability Insurance. An additional premium of $103,198 (2009: nil) was paid in respect of Directors and Officers Liability
Insurance in relation to the share placements and entitlements issue to raise funds for the Dawson SeamGas acquisition. It is not possible to apportion the
premium between amounts relating to the insurance against legal costs and those relating to other liabilities.
To the extent permitted by law, the Company indemnifies every person who is or has been an officer against:
•      any liability to any person (other than the Company, related entities or a major shareholder) incurred while acting in that capacity and in good faith; and
•      costs and expenses incurred by that person in that capacity in successfully defending legal proceedings and ancillary matters.

Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience
with the Company and/or the Group are important.
The Board has considered the position and, in accordance with the advice received from the Audit and Compliance Committee is satisfied that the provision
of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are
satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
•      all non-audit services have been reviewed by the Audit and Compliance Committee to ensure they do not impact the impartiality and objectivity of the
       auditor; and
•      none of the services undermine the general principles relating to auditor independence as set out in APES 110 “Code of Ethics for Professional Accountants”.
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act 2001 is set out on page 37.
Details of the amounts paid or payable to the auditor (PricewaterhouseCoopers) for non-audit services provided during the year are set out below (Amounts
paid or payable in respect of audit services are set out in Note 23).

                                                                                                                    Consolidated                Consolidated
                                                                                                                            2010                       2009
                                                                                                                                $                           $
Taxation services
Taxation return preparation                                                                                                8,000                       8,000
Taxation advice                                                                                                            28,132                           –
R&D Tax advice                                                                                                             13,369                       4,900
GST advice                                                                                                                32,236                        7,550
Total remuneration for taxation services                                                                                   81,737                      20,450


Other services
    Review of accounting treatment of specific transactions                                                                 17,000                           –


The following fees were paid or payable for services provided by related practices of
PricewaterhouseCoopers Australian firm:
Other services
Advice on potential business acquisitions                                                                                 45,082                     183,906
Total remuneration for non-audit services                                                                                 143,819                    204,356

Rounding of amounts
The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the ‘’rounding off ’’
of amounts in the Directors’ Report. Amounts in the Directors’ Report have been rounded off in accordance with that Class Order to the nearest thousand
dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of Directors.




Nathan Mitchell
Director
Brisbane,
29 September 2010



                                                                                                                WestSide Corporation Limited Annual Report 2010   Page 36
     Auditor’s Independence Declaration
     30 June 2010
     WestSide Corporation Limited




                                                                                                                           PricewaterhouseCoopers
                                                                                                                           ABN 52 780 433 757
                                                                                                                           Riverside Centre
                                                                                                                           123 Eagle Street
                                                                                                                           GPO Box 150
                                                                                                                           BRISBANE QLD 4001
                                                                                                                           DX 77 Brisbane
                                                                                                                           Australia
                                                                                                                           www.pwc.com/au
                                                                                                                           Telephone +61 7 3257 5000
                                                                                                                           Facsimile +61 7 3257 5999




     Auditor’s Independence Declaration
     As lead auditor for the audit of WestSide Corporation Limited for the year ended 30 June 2010, I declare that, to the best of my knowledge and belief,
     there have been:
     (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
     (b) no contraventions of any applicable code of professional conduct in relation to the audit.
     This declaration is in respect of WestSide Corporation Limited and the entities it controlled during the period.




     Brett Delaney
     Partner
     PricewaterhouseCoopers
     Brisbane, 29 September 2010



     Liability limited by a scheme approved under Professional Standards Legislation




Page 37   WestSide Corporation Limited Annual Report 2010
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2010
WestSide Corporation Limited



                                                                                                                                          Consolidated
                                                                                                                                      2010                2009
                                                                                                                      Notes         $’000                 $’000
Revenue from continuing operations                                                                                     3a            3,242                   851
Other Income                                                                                                           3b                7                     —
Total income                                                                                                                         3,249                   851

Other expenses:                                                                                                        4
Employment                                                                                                                           (1,757)               (1,152)
Operating costs and consumables – drilling rig                                                                                      (1,656)                    —
Occupancy                                                                                                                             (448)                 (161)
Accounting and compliance                                                                                                             (344)                 (247)
Investor relations                                                                                                                    (217)                 (152)
Directors’ fees                                                                                                                       (201)                (203)
Business development                                                                                                                  (177)                (278)
Legal                                                                                                                                 (165)                (209)
Insurance                                                                                                                              (121)                 (48)
Depreciation                                                                                                                          (102)                  (20)
Travel                                                                                                                                 (97)                  (83)
Communications and information systems                                                                                                  (61)                 (21)
Finance costs                                                                                                                          (32)                  (26)
Other                                                                                                                                   (21)                  (5)
Net foreign exchange losses                                                                                                               —                  (23)
Share of net losses of joint venture entity                                                                                           (313)               (1,350)
Impairment of investment in joint venture entity                                                                                          —                  (58)
Total other expenses                                                                                                                 (5,712)             (4,036)

Loss before income tax                                                                                                              (2,463)               (3,185)
Income tax expense                                                                                                     5                  —                    —
Loss after income tax attributable to the owners of WestSide Corporation Ltd                                                        (2,463)               (3,185)

Other comprehensive income
Exchange differences on translation of foreign subsidiaries                                                                               1                    —
Total comprehensive loss for the year attributable to the owners of WestSide Corporation Ltd                                        (2,462)               (3,185)


                                                                                                                                      2010                2009
                                                                                                                                     Cents                Cents
Earnings / (loss) per share for profit from continuing operations attributable to the ordinary equity holders
of the Company:
Basic and diluted earnings per share                                                                                   24            (1.92)               (3.87)


Earnings / (loss) per share for profit attributable to the ordinary equity holders of the Company:
Basic and diluted earnings per share                                                                                   24            (1.92)               (3.87)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.




                                                                                                                 WestSide Corporation Limited Annual Report 2010     Page 38
     Consolidated Balance Sheet
     As at 30 June 2010
     WestSide Corporation Limited



                                                                                                                     Consolidated
                                                                                                                 2010                2009
                                                                                                       Notes    $’000                $’000
     ASSETS
     Current assets
     Cash and cash equivalents                                                                          6       73,794              24,225
     Trade and other receivables                                                                         7      4,056                2,734
     Inventories                                                                                        8         706                  358
     Total current assets                                                                                       78,556               27,317


     Non-current assets
     Property, plant and equipment                                                                      10       1,787                 646
     Intangible assets – exploration and evaluation costs                                               11      22,786               15,914
     Other                                                                                              9       4,626                 2,179
     Total non-current assets                                                                                   29,199              18,739

     Total assets                                                                                              107,755              46,056


     LIABILITIES
     Current liabilities
     Trade and other payables                                                                           12       5,760               4,543
     Borrowings                                                                                         13          19                   17
     Provisions                                                                                        15(a)      234                   55
     Total current liabilities                                                                                   6,013               4,615


     Non-current liabilities
     Borrowings                                                                                         14         35                   55
     Provisions                                                                                        15(b)      998                  520
     Total non-current liabilities                                                                               1,033                 575

     Total liabilities                                                                                           7,046               5,190


     Net assets                                                                                                100,709              40,866


     EQUITY
     Contributed equity                                                                                 16     107,316              45,266
     Reserves                                                                                          17(a)      648                  392
     Accumulated losses                                                                                17(b)    (7,255)              (4,792)

     Total equity                                                                                              100,709              40,866
     The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.




Page 39   WestSide Corporation Limited Annual Report 2010
Statement of Changes in Equity
For the year ended 30 June 2010
WestSide Corporation Limited



                                                                                                                              Consolidated
                                                                                                                         2010                 2009
                                                                                                       Notes            $’000                 $’000

Total equity at the start of the financial year                                                                         40,866                26,803

Total comprehensive income and (expense) for the year                                                                   (2,462)               (3,186)


Contributions of equity, net of transaction costs                                                      16(c)           62,027                 17,053
Employee shares issued                                                                                 16(c)                23                   69
Employee share options                                                                                  17(a)              178                  127
Performance rights                                                                                      17(a)               77
                                                                                                                       62,305                 17,249

Total equity at the end of the financial year                                                                          100,709                40,866
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.




                                                                                                      WestSide Corporation Limited Annual Report 2010   Page 40
     Cash Flow Statement
     For the year ended 30 June 2010
     WestSide Corporation Limited



                                                                                                              Consolidated
                                                                                                         2010                  2009
                                                                                                Notes   $’000                 $’000
     Cash flows from operating activities
     Receipts from customers and joint venture entity                                                        –                  164
     Receipts of refunds of goods and services tax                                                       1,642                 1,487
     Payments to suppliers and employees (inclusive of goods and services tax)                          (8,437)               (6,256)
     Interest received                                                                                   1,207                   771
     Interest paid                                                                                          (5)                   (2)
     Net cash outflow from operating activities                                                  6(a)    (5,593)               (3,836)


     Cash flows from investing activities
     Receipts from joint venture participants (inclusive of Goods and Services Tax)                      6,466                3,533
     Payments for exploration and evaluation                                                            (11,315)              (7,792)
     Payments for property, plant and equipment                                                         (1,360)                 (316)
     Payments for development assets                                                                      (781)                    –
     Investment in joint venture entities                                                                    –                  (642)
     Net cash outflow from investing activities                                                          (6,990)               (5,217)


     Cash flows from financing activities
     Proceeds from issues of shares                                                                     64,375           18,089
     Payments of share issue costs                                                                      (2,205)              (1,036)
     Proceeds from borrowings                                                                                –                   77
     Repayment of borrowings                                                                               (18)                  (6)
     Net cash inflow from financing activities                                                            62,152               17,124


     Net increase (decrease)/ in cash and cash equivalents                                              49,569                 8,071
     Cash and cash equivalents at the beginning of the financial year                                    24,225                16,144
     Effects of exchange rate changes on cash and cash equivalents                                           –                    10
     Cash and cash equivalents at end of year                                                    6      73,794               24,225
     The above Cash Flow Statement should be read in conjunction with the accompanying notes.




Page 41   WestSide Corporation Limited Annual Report 2010
Notes to the Financial Statements
30 June 2010
WestSide Corporation Limited



This financial report covers the Consolidated Entity consisting of               Subsidiaries are fully consolidated from the date on which control is
WestSide Corporation Limited (the “Company” or “Parent Entity” or               transferred to the Group. They are de consolidated from the date that
“WestSide”) and its subsidiaries. The financial report is presented in the       control ceases.
Australian currency.
                                                                                The purchase method of accounting is used to account for the acquisition
WestSide Corporation Limited is a company limited by shares,                    of subsidiaries by the Group (refer to Note 1(f)).
incorporated and domiciled in Australia. Its principal place of business is
                                                                                Intercompany transactions, balances and unrealised gains on transactions
Level 8, 300 Queen Street, Brisbane, Queensland, 4000.
                                                                                between Group companies are eliminated. Unrealised losses are also
A description of the nature of the Consolidated Entity’s operations and         eliminated unless the transaction provides evidence of the impairment of
its principal activities is included in the attached Annual Report on pages     the asset transferred. Accounting policies of subsidiaries are consistent
3 to 18 and in the Directors’ Report on pages 25 to 36, both of which are       with the policies adopted by the Group.
attached to, but do not form part of this financial report.
                                                                                Non-controlling interests in the results and equity of subsidiaries are
The financial report was authorised for issue by the Directors on 29             shown separately in the consolidated Statement of Comprehensive
September 2010. The Company has the power to amend and reissue the              Income and Balance Sheet respectively.
financial report.
                                                                                Joint ventures

1 Summary of significant accounting policies                                     Jointly controlled assets
The principal accounting policies adopted in the preparation of the             The proportionate interests in the assets, liabilities and expenses of joint
financial report are set out below. These policies have been consistently        venture activities have been incorporated in the financial statements under
applied to all the years presented, unless otherwise stated.                    the appropriate headings. Details of joint ventures are set out in Note 19.

(a) Basis of preparation                                                        Joint venture entities
This general purpose financial report has been prepared in accordance            Interests in jointly-owned companies are accounted for in the consolidated
with Australian Accounting Standards, other authoritative                       financial statements using the equity method. Under the equity method,
pronouncements of the Australian Accounting Standards Board,                    the share of the profits or losses of jointly-owned companies are
Urgent Issues Group Interpretations and the Corporations Act 2001.              recognised in the Statement of Comprehensive Income, and the share of
                                                                                movements in reserves is recognised in reserves in the Balance Sheet. The
Compliance with IFRS
                                                                                cumulative profits, losses and reserves movements are adjusted against
The consolidated financial statements and notes of the WestSide                  the carrying amount of the investment. When the Group’s share of losses
Corporation Ltd group comply with International Financial Reporting             in a joint venture entity equals or exceeds the cost of its investment in the
Standards (IFRS) as issued by the International Accounting Standards            joint venture entity, including any other long-term unsecured receivables,
Board.                                                                          the Group does not recognise further losses, unless it has incurred
Historical cost convention                                                      obligations or made payments on behalf of the joint venture entity. Further
                                                                                details of jointly-owned companies are set out in Note 19.
These financial statements have been prepared under the historical
cost convention, as modified by the revaluation of financial assets and           Profits or losses on transactions with the joint venture are eliminated to
liabilities (including derivative instruments) at fair value through profit or   the extent of the Group’s ownership interest until such time that they are
loss and certain classes of property, plant and equipment where relevant.       realised by the joint venture on consumption or sale unless they relate to
                                                                                an unrealised loss that provides evidence of the impairment of an asset
Financial statement presentation
                                                                                transferred.
The Group has applied the revised AASB 101 Presentation of Financial
Statements which became effective on 1 January 2009. The revised                (c) Trade and other receivables
standard requires the separate presentation of a Statement of                   All trade and other receivables are recognised initially at fair value and
Comprehensive Income and Statement of Changes in Equity. To conform             subsequently measured at amortised cost less provisions for doubtful
with these changes, the Group now presents non-owner changes in equity          debts. Collectability is reviewed on an ongoing basis. Debts which are
in the Statement of Comprehensive Income. Comparative information has           known to be uncollectible are written-off. An allowance for doubtful debts
been re-presented accordingly.                                                  (provision for impairment of trade receivables) is made where there is
                                                                                objective evidence that the Group will not be able to collect all amounts
Comparative information
                                                                                due according to the original terms. The amount of the impairment
Comparative information has been reclassified where appropriate to               allowance is the difference between the asset’s carrying amount and
enhance comparability.                                                          the present value of the estimated future cash flows discounted at the
(b) Principles of consolidation                                                 effective interest rate. The amount of any impairment loss is recognised
                                                                                in the Statement of Comprehensive Income. Subsequent recoveries of
Subsidiaries                                                                    amounts previously written-off are credited against other expenses in the
The consolidated financial statements incorporate the assets and                 Statement of Comprehensive Income.
liabilities of all subsidiaries of WestSide Corporation Limited as at 30 June
2010 and the results of all subsidiaries for the year then ended. WestSide      Trade receivables are due for settlement no more than 30 days from the
Corporation Limited and its subsidiaries together are referred to in this       date of recognition.
financial report as the “Group” or the “Consolidated Entity”.                    (d) Inventories
Subsidiaries are all those entities (including special purpose entities) over   Stores, consumables and work in progress are stated at the lower of
which the Group has the power to govern the financial and operating              cost and net realisable value. Cost comprises direct materials and labour
policies, generally accompanying a shareholding of more than one half of        incurred and includes the transfer from equity of any gains/losses on
the voting rights. The existence and effect of potential voting rights that     qualifying cash flow hedges relating to purchases of inventory items. The
are currently exercisable or convertible are considered when assessing          costs are assigned to individual items on the basis of weighted average
whether the Group controls another entity.                                      cost. Costs of purchased inventory are determined after deducting
                                                                                rebates and discounts.


                                                                                                            WestSide Corporation Limited Annual Report 2010   Page 42
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     (e) Exploration, evaluation, development and restoration costs                  Change in accounting policy
     Exploration and evaluation costs                                                The revised AASB 3 Business Combinations became operative on 1 July
     Exploration and evaluation expenditure incurred by or on behalf of the          2009, bringing some changes to accounting for business combinations. As
     entity is accumulated separately for each area of interest. Such expenditure    no acquisitions have occurred in the current period or previous years, the
     comprises net direct costs and related overhead expenditure only to the         changes do not have any impact on the Group’s results.
     extent that those costs can be related directly to operational activities in    (g) Impairment of assets
     the area of interest to which the exploration and evaluation asset relates.
                                                                                     Assets are reviewed for impairment whenever events or changes in
     Each area of interest is limited to a size related to a known or probable       circumstances indicate that the carrying amount may not be recoverable.
     petroleum resource. Currently the Company operates in multiple areas of         An impairment loss is recognised for the amount by which the asset’s
     interest in the Bowen Basin in Queensland, and each is generally defined         carrying amount exceeds its recoverable amount. The recoverable amount
     by tenement permit boundaries. The Company’s interests in tenements is          is the higher of an asset’s fair value less costs to sell and value in use. For
     set out on page 76 of this Annual Report.                                       the purposes of assessing impairment, assets are grouped at the lowest
     Exploration expenditure for each area of interest is carried forward as an      levels for which there are separately identifiable cash flows.
     asset provided that one of the following conditions is met:                     Exploration and evaluation assets are assessed annually for impairment,
     •    such costs are expected to be recouped through successful                  and more regularly when facts and circumstances suggest that the
          development and exploitation of the area of interest, or alternatively,    carrying amount of an exploration and evaluation asset may exceed its
          by its sale; or                                                            recoverable amount.
     •    exploration activities in the area of interest have not yet reached        (h) Property, plant and equipment
          a stage which permits a reasonable assessment of the existence             Property, plant and equipment is stated at historical cost less
          or otherwise of economically recoverable reserves, and active and          depreciation. Historical cost includes expenditure that is directly
          significant operations in relation to the area are continuing.              attributable to the acquisition of the asset, including any gains or losses
     Exploration expenditure which fails to meet at least one of the conditions      from qualifying cash flow hedges of foreign currency purchases of
     outlined above is written off. As the assets are not yet ready for use no       property, plant and equipment.
     depreciation or amortisation is reognised.
                                                                                     Gains and losses on disposals are determined by comparing proceeds with
     Expenditure is not carried forward in respect of any area of interest unless    carrying amounts. These are included in the Statement of Comprehensive
     the Group’s rights of tenure to that area of interest are current.              Income.
     The ultimate recoupment of exploration and evaluation expenditure is            An asset’s carrying amount is written-down immediately to its
     dependent on successful development and commercial exploitation, or             recoverable amount if the asset’s carrying amount is greater than its
     alternatively, sale of the respective area.                                     estimated recoverable amount.
     Restoration, rehabilitation and environmental costs                             Depreciation
     Future estimated costs for the restoration and rehabilitation of areas          Depreciation on assets is provided on a straight-line basis to allocate
     affected by exploration activities are recognised at the present value of       their cost or revalued amounts, net of their residual values, over their
     those future costs. The discount rate used to determine the present value       estimated useful lives. Residual values and estimates of remaining useful
     reflects current market assessments of the time value of money and risks         lives are assessed annually for all assets.
     specific to the liability. Increases in the provision each year which result
     from the passage of time are recognised as borrowing costs.                     The expected useful lives are as follows:
     Restoration, rehabilitation and environmental obligations recognised            Plant and equipment             2-6 years
     include the costs of reclamation, plant and waste site closure and
     subsequent monitoring of the environment.                                       (i)   Trade and other payables
                                                                                     These amounts represent liabilities for goods and services provided to the
     Estimates are reassessed at least annually. Changes in estimates relating
                                                                                     Consolidated Entity prior to the end of the financial year which remain unpaid.
     to areas of interest in the exploration and evaluation phase are dealt
                                                                                     The amounts are unsecured and are usually paid within 30 days of recognition.
     with in the period that the change is made, with any amounts that would
     have been written off or provided against under the accounting policy for       (j)   Employee benefits
     exploration and evaluation immediately written off.
                                                                                     Wages and salaries, annual leave and sick leave
     (f) Business combinations                                                       Liabilities arising in respect of wages and salaries, annual leave and
     The acquisition method of accounting is used to account for all business        any other employee entitlements expected to be settled within twelve
     combinations regardless of whether equity instruments or other assets           months of the reporting date are measured at the amounts expected to
     are acquired. Cost is measured as the fair value of assets transferred,         be paid when the liabilities are settled.
     equity interests issued or liabilities incurred at the date of acquisition.
                                                                                     Long service leave
     The consideration transferred also includes the fair value of any
                                                                                     Long service leave liabilities are measured at the present value of the
     contingent consideration arrangement and the fair value of any pre-
                                                                                     estimated future cash outflow to be made in respect of services provided
     existing equity interest in a newly-acquired subsidiary. Any incidental
                                                                                     by employees up to the reporting date using the projected unit credit
     costs directly attributable to the acquisition are expensed as incurred.
                                                                                     method. Consideration is given to expected future wage and salary levels,
     Identifiable assets acquired and liabilities and contingent liabilities
                                                                                     projected employee movements and periods of service. Expected future
     assumed in a business combination are, with limited exceptions,
                                                                                     payments are discounted using market yields at the reporting date on
     measured initially at their fair values at the acquisition date.
                                                                                     national government bonds with terms to maturity that match, as closely
     Where settlement of any part of cash consideration is deferred, the             as possible, the estimated future cash flows. As no employees have
     amounts payable in the future are discounted to their present value as at       yet served with the Group long enough for long service leave to vest, no
     the date of acquisition. The discount rate used is the Group’s incremental      liability has been recognised at balance date.
     borrowing rate, being the rate at which a similar borrowing could be obtained
     from an independent financier under comparable terms and conditions.



Page 43   WestSide Corporation Limited Annual Report 2010
Bonus plans                                                                       recognised for deductible temporary differences and unused tax losses
A liability for employee benefits in the form of bonus plans is recognised         unless it is probable that future taxable amounts will be available to
in trade payables and accruals when there is no realistic alternative but to      utilise those temporary differences and losses.
settle the liability and at least one of the following conditions is met:
                                                                                  Tax consolidation legislation
•     There are formal terms in the plan for determining the amount of the        WestSide and its wholly-owned Australian entities have implemented
      benefit;                                                                     the tax consolidation legislation. As a consequence, WestSide and each
•     The amounts to be paid are determined before the time of the                subsidiary in the tax consolidated group continue to account for their own
      completion of the financial report; or                                       current and deferred tax amounts. These tax amounts are measured as
                                                                                  if each entity in the tax consolidated group continues to be a stand alone
•     Past practice gives clear evidence of the amount of the obligation.
                                                                                  taxpayer in its own right. In addition to its own current and deferred tax
Liabilities for bonus plans are expected to be settled within 12 months and       amounts, WestSide as the head entity also recognises the current tax
are measured at the amounts expected to be paid when they are settled.            liabilities or assets and the deferred tax assets arising from unused tax
Equity-based compensation benefits                                                 losses and unused tax credits assumed from controlled entities in the tax
                                                                                  consolidated group.
Equity-based compensation benefits are provided to employees via the
WestSide Director and Employee Incentive Option Plan and the Employee             (n) Foreign currency translation
Performance Rights Plan.                                                          Functional and presentation currency
The fair value of Ordinary Shares, Incentive Options or Performance               Items included in the financial statements of each of the Group’s entities
Rights issued to employees for no cash consideration is recognised as an          are measured using the currency of the primary economic environment
employee benefit expense with a corresponding increase in equity. The              in which the entity operates. The consolidated financial statements are
fair value is measured at grant date and recognised in reserves over the          presented in Australian dollars, which is the functional and presentation
period during which the employees become unconditionally entitled to the          currency of the Company.
shares, options or rights. When the shares are issued, options exercised or
                                                                                  Transactions and balances
rights converted to shares, the value is transferred to Contributed Equity.
                                                                                  Foreign currency transactions are translated into the functional currency
The fair value of Incentive Options are determined using a Black-Scholes-         at the rate of exchange at the date of the transaction. Foreign exchange
Merton option pricing model that takes into account the exercise price, term      gains and losses resulting from the settlement of such transactions
of the options, the share price at grant date, expected price volatility of the   and from the translation at year end exchange rates of monetary assets
underlying share and the risk free interest rate for the term of the option.      and liabilities denominated in foreign currencies are recognised in the
Performance Rights are valued at the market value of an underlying                Statement of Comprehensive Income, except when deferred in equity as
Ordinary Share in WestSide Corporation Limited at the grant date.                 qualifying cash flow hedges and qualifying net investment hedges.
The assessed fair value at grant date of Ordinary Shares, Incentive               Translation differences on non-monetary items are reported as either part
Options or Performance Rights granted to employees is allocated equally           of the fair value gain or loss, or are included in the fair value reserve in equity.
over the period of service to which the benefit relates up to the actual
                                                                                  Group companies
or expected vesting date with the quantity of shares or options being
included in the measurement of the transaction being adjusted to reflect           The results and financial position of Group entities which have a
the number of shares or options which are expected to, or actually vest.          functional currency different from the Group’s presentation currency
                                                                                  are translated into the presentation currency. Assets and liabilities
(k) Contributed equity                                                            are translated at the exchange rate applicable at balance date, while
Ordinary share capital is recognised at the fair value of the consideration       Statement of Comprehensive Income items are translated at the
received by the Company.                                                          exchange rates applicable at the dates of the transactions, or an average
                                                                                  exchange rate where it approximates the results of using individual
Any transaction costs arising on the issue of ordinary shares are
                                                                                  rates. All resulting exchange differences are recognised as a separate
recognised directly in equity as a reduction in the share proceeds received.
                                                                                  component of equity.
(l)   Revenue recognition
                                                                                  On consolidation, exchange differences arising from the translation of any
Revenue is measured at the fair value of the consideration received or            net investment in foreign entities are taken to shareholder’s equity.
receivable. Amounts disclosed as revenue are net of amounts collected on
behalf of third parties.                                                          (o) Investments and other financial assets
                                                                                  The Group classifies its investments in the following categories: financial
Interest income is recognised on a time proportion basis using the
                                                                                  assets at fair value through profit or loss; loans and receivables; held-
effective interest method.
                                                                                  to-maturity investments; and available-for-sale financial assets. The
(m) Income tax                                                                    classification depends on the purpose for which the investments were
The income tax expense or revenue for the period is the tax payable               acquired. Management determines the classification of its investments
on the current period’s taxable income based on the income tax rate               at initial recognition and re-evaluates this designation at each reporting
adjusted by changes in the deferred tax assets and liabilities attributable       date. The treatment of categories relevant to these financial statements
to temporary differences between the tax bases and liabilities and their          is as follows:
carrying amounts in the financial statements, and to unused tax losses.            (i) Loans and receivables
Deferred income tax is provided in full, using the liability method, on           Loans and receivables are non-derivative financial assets with fixed or
temporary differences arising between the tax bases of assets and                 determinable payments that are not quoted in an active market. They
liabilities and their carrying amounts in the consolidated financial               arise when the Group provides money, goods or services directly to a
statements. Deferred income tax is determined using tax rates and laws            debtor with no intention of selling the receivable. They are included in
that have been enacted or substantially enacted by the balance sheet              current assets, except for those with maturities greater than 12 months
date and are expected to apply when the related deferred income tax               after the balance sheet date which are classified as non-current assets.
asset / liability is realised or settled. The deferred tax assets are not         Loans and receivables are included in receivables in the Balance Sheet.



                                                                                                             WestSide Corporation Limited Annual Report 2010        Page 44
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     (ii) Held-to-maturity investments                                              qualify for hedge accounting are recognised immediately in the Statement
     Held-to-maturity investments are non-derivative financial assets with           of Comprehensive Income.
     fixed or determinable payments and fixed maturities that the Group’s
                                                                                    (q) Fair value estimation
     management has the positive intention and ability to hold to maturity.
                                                                                    The fair value of financial assets and financial liabilities must be
     Impairment                                                                     estimated for recognition and measurement or for disclosure purposes.
     The Group and Parent assess at each balance date whether there are
                                                                                    The fair value of financial instruments traded in active markets (such as
     indicators that a financial asset or group of financial assets is impaired.
                                                                                    publicly traded derivatives, and trading and available-for-sale securities)
     Where the carrying value of the asset is assessed as being greater
                                                                                    is based on quoted market prices at the balance sheet date. The quoted
     than the estimated present value of future cash flows discounted at
                                                                                    market price used for financial assets held by the Group is the current bid
     an appropriate discount rate, an impairment loss is recognised in the
                                                                                    price; the appropriate quoted market price for financial liabilities is the
     Statement of Comprehensive Income. Impairment losses recognised
                                                                                    current ask price.
     through the Statement of Comprehensive Income are not reversed.
                                                                                    The fair value of financial instruments that are not traded in an active
     (p) Hedging
                                                                                    market is determined using a variety of valuation techniques and
     The Group designates certain financial assets or derivatives as either:         assumptions that are based on market conditions existing at each balance
     (1) hedges of the fair value of recognised assets or liabilities (fair value   date. Quoted market prices or dealer quotes for similar instruments are
     hedge); or (2) hedges of highly probable forecast transactions or a firm        used for long-term debt instruments held. Other techniques, such as
     commitment which have a foreign currency risk (cash flow hedges); or            estimated discounted cash flows, and binomial option valuation models
     (3) hedges of a net investment in a foreign operation (net investment          are used to determine fair value for the remaining financial instruments.
     hedges).                                                                       The fair value of forward exchange contracts is determined using market
     The Group documents at the inception of the transaction the relationship       exchange rates and published forward margins at the balance sheet date.
     between hedging instruments and hedged items, as well as its risk              The carrying value less impairment provisions of trade receivables and
     management objective and strategy for undertaking various hedge                payables are assumed to approximate their fair values. The fair value of
     transactions. The Group also documents its assessment, both at hedge           financial liabilities for disclosure purposes is estimated by discounting the
     inception and on an ongoing basis, of whether the derivatives that are         future contractual cash flows at the current market interest rate that is
     used in hedging transactions have been and will continue to be highly          available to the Group for similar financial instruments.
     effective in offsetting changes in fair values or cash flows of hedged
     items.                                                                         (r) Cash and cash equivalents
                                                                                    For Cash Flow Statement presentation purposes, cash and cash
     Fair value hedge
                                                                                    equivalents includes cash on hand, deposits held at call with financial
     Changes in the fair value of financial assets or derivatives that are
                                                                                    institutions and other short term, highly liquid investments with original
     designated and qualify as fair value hedges are recorded in the Statement
                                                                                    maturities of three months or less that are readily convertible to known
     of Comprehensive Income, together with any changes in the fair value of
                                                                                    amounts of cash and which are subject to an insignificant risk of changes
     the hedged asset or liability that are attributable to the hedged risk.
                                                                                    in value.
     Cash flow hedge
                                                                                    (s) Earnings per share
     The effective portion of changes in the fair value of financial assets
                                                                                    Basic earnings per share is determined by dividing the profit or loss
     or derivatives that are designated and qualify as cash flow hedges is
                                                                                    attributable to equity holders of the Company, excluding any costs of
     recognised in equity in the hedging reserve. The gain or loss relating to
                                                                                    servicing equity other than ordinary shares, by the weighted average
     the ineffective portion is recognised immediately in the Statement of
                                                                                    number of ordinary shares outstanding during the period.
     Comprehensive Income.
                                                                                    Diluted earnings per share adjusts the amounts used in the determination
     Amounts accumulated in equity are recycled in the Statement of
                                                                                    of basic earnings per share to take into account the after tax effect of
     Comprehensive Income in the periods when the hedged item will affect
                                                                                    interest and other financing costs associated with dilutive potential
     profit or loss (for instance when the forecast expense that is hedged takes
                                                                                    ordinary shares and the weighted average number of shares assumed
     place). However, when the forecast transaction that is hedged results
                                                                                    to have been issued for no consideration in relation to dilutive potential
     in the recognition of a non-financial asset (for example, inventory) or a
                                                                                    ordinary shares. Potential ordinary shares are not considered dilutive
     non-financial liability, the gains and losses previously deferred in equity
                                                                                    where the Group incurs a loss per share.
     are transferred from equity and included in the measurement of the initial
     cost or carrying amount of the asset or liability.                             (t) Leases
     When a hedging instrument expires or is sold or terminated, or when a          Leases in which a significant portion of the risks and rewards of
     hedge no longer meets the criteria for hedge accounting, any cumulative        ownership are not transferred to the Group as lessee are classified as
     gain or loss existing in equity at that time remains in equity and is          operating leases. Payments made under operating leases (net of any
     recognised when the forecast transaction is ultimately recognised in the       incentives received from the lessor) are charged to the Statement of
     Statement of Comprehensive Income. When a forecast transaction is no           Comprehensive Income on a straight-line basis over the life of the lease.
     longer expected to occur, the cumulative gain or loss that was reported        (u) Rounding of amounts
     in equity is immediately transferred to the Statement of Comprehensive
     Income.                                                                        The Company is of a kind referred to in Class order 98/100, issued by
                                                                                    the Australian Securities and Investments Commission, relating to
     Net investment hedge                                                           the ‘’rounding off ’’ of amounts in the financial report. Amounts in the
     Hedges of net investments in foreign operations are accounted for              financial report have been rounded off in accordance with that Class Order
     similarly to cash flow hedges.                                                  to the nearest thousand dollars, or in certain cases, the nearest dollar.

     Derivatives that do not qualify for hedge accounting                           (v) Goods and services tax
     Certain derivative instruments do not qualify for hedge accounting.            Revenues, expenses and assets are recognised net of the amount of
     Changes in the fair value of any derivative instrument that does not           associated GST, unless the GST incurred is not recoverable from the


Page 45   WestSide Corporation Limited Annual Report 2010
taxation authority. In this case it is recognised as part of the cost of
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST
receivable and payable. The net amount of GST recoverable from, or
payable to, the taxation authority is included with other receivables or
payables in the Balance Sheet.
All cash outflows in respect of GST, including payments to suppliers and
employees, payments for exploration and evaluation, property, plant
and equipment, and payments for exploration inventory are included in
payments to suppliers and employees from operating activities in the
Cash Flow Statements.
Receipts of GST paid by the Company and subsequently refunded
by taxation authorities are disclosed separately as a cash flow from
operating activities. Receipts of GST included with receipts from
customers are included in receipts from customers from operating
activities on the Cash Flow Statements.
With the exception of receipts of cash contributions from joint venture
participants for their share of joint venture costs incurred by the Company
as operator, all cash flows from investing activities and from financing
activities are net of GST as all associated GST cash flows are included in
cash flows from operating activities.
(w) Critical accounting estimates and judgements
The preparation of financial statements requires the use of certain
critical accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group’s accounting policies.
Estimates and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future
events that may have a financial impact on the entity and that are
believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal
the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed below.
Impairment of exploration and evaluation expenditure
In accordance with the Group’s policy for deferral of exploration and
evaluation costs as set out in note 1(e), exploration expenditure for each
area of interest is carried forward as an asset as exploration activities
in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in relation to
the area are continuing.
The ultimate recoupment of exploration and evaluation expenditure is
dependent on successful development and commercial exploitation, or
alternatively, sale of the respective area. It is possible that the eventual
results of exploration will not satisfy these criteria and the costs may
have to be written-off as a loss against profits.
There are no critical judgements that management consider would
significantly affect amounts recognised in the financial statements.




                                                                               WestSide Corporation Limited Annual Report 2010   Page 46
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     (x) New accounting standards and UIG interpretations
     Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2010 reporting period. The Group’s
     assessment of the impact of these new standards and interpretations is set out below.

                                                                                                                                                    Applicable         Impact on
     Reference                Description                                                                                                             from*          financial report
     AASB 2009-5              Amendments to Australian Accounting Standards arising from the annual improvements project                             1/1/2010               (2)
     AASB 2009-8              Amendments to Australian Accounting Standard AASB 2 regarding Group cash-settled share-based                           1/1/2010               (2)
                              payment transactions.

     AASB 2009-10             Amendments to Australian Accounting Standard AASB 132 – relating to accounting for rights issues in                    1/2/2010               (2)
                              a currency other than the functional currency of the issuer.
     AASB 2009-11 /           New Accounting Standard AASB 9 Financial Instruments addresses the classification and                                   1/1/2013               (2)
     AASB 9                   measurement of financial assets.
     AASB 2009-12             Revision to AASB 124 Related Party Disclosures                                                                         1/1/2011                (1)
     AASB 2009-13 / AASB New AASB Interpretation 19 Extinguishing financial liabilities with equity instruments.                                      1/7/2010               (2)
     Interpretation 19
     AASB 2009-14             Amendment to Australian Interpretation – Prepayments of a Minimum Funding Requirement.                                 1/1/2011               (2)
     * The Consolidated Entity expects to implement these standards from their applicable dates.
     (1) Application of the standard will not affect any of the amounts recognised in the financial statements, but will impact the type of information disclosed in relation to the
         Group’s transactions with related parties.
     (2) Application of the standard is not expected to have an impact on the Group’s financial statements.


     (y) Segment reporting
     Operating segments are reported in a manner consistent with that reported to senior management and the Board.
     Change in accounting policy
     The Group has adopted AASB 8 “Operating Segments’ from 1 July 2009. The new standard replaces AASB 114 “Segment Reporting”. The new standard
     requires reporting of segments consistent with that used for internal reporting purposes. This new presentation has not resulted in any change to the
     measurement of the Group’s assets or liabilities. Comparatives for 2009 have been represented.




Page 47   WestSide Corporation Limited Annual Report 2010
2 Segment information
The Group’s primary operating segment is its exploration activities including the exploration and evaluation of potential gas resources. Management
manages activities in each exploration tenement separately, but as the operations in each area are similar, the various tenements have been aggregated
into one operating segment.
During 2009, the Group commissioned a drilling rig which it rents to a drilling contractor. The drilling operations are considered to be a separate operating
segment as the revenues and costs of drilling operations are reported separately to management and the Board.
The Group’s activities are conducted in two geographical areas, being Australia and Indonesia.
Revenue of $1,253,770 and $671,338 (2009: nil) are derived from single external customers attributable to drilling rig operations.
Primary reporting format – geographical segments

                                                                      Drilling rig                     Meridian
                                                                      operations     Exploration       SeamGas         All other segments                Total
                                                                        Austalia       Australia       Australia    Indonesia        Australia
Year ended 30 June 2010                                                    $’000          $’000           $’000         $’000          $’000            $’000


Revenue from external customers                                            1,925               –               –           33                 7          1,965
Add interest revenue                                                                                                                                     1,284
Total income                                                                                                                                            3,249


Segment profit / (loss) before interest                                        110              –           (396)         (282)           (3,147)        (3,715)
Add interest revenue                                                                                                                                     1,284
Less interest expense                                                                                                                                         (32)
Loss after income tax                                                                                                                                   (2,463)


Segment assets and liabilities
Segment assets                                                             4,753          26,845          1,392             –               678        33,668
Add jointly utilised assets:
Cash                                                                                                                                                    73,794
Interest receivable                                                                                                                                       293
Total assets                                                                                                                                           107,755


Segment liabilities                                                             –        (1,000)               –            –                –          (1,000)
Add liabilities not regularly reported by segment:
Trade and other payables                                                                                                                                (5,760)
Borrowings                                                                                                                                                    (54)
Provisions                                                                                                                                                (232)
Total liabilities                                                                                                                                       (7,046)


Other segment information
Acquisitions of property, plant & equipment and intangible assets          1,098          6,617                –            –               183          7,898
Depreciation and amortisation expense                                         42              –                –            –               60                102
Share of losses of joint venture entity                                         –             –                –          313                –                313




                                                                                                            WestSide Corporation Limited Annual Report 2010      Page 48
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited




                                                                         Drilling rig
                                                                         operations     Exploration     All other segments           Total
                                                                           Austalia       Australia   Indonesia       Australia
     Year ended 30 June 2009                                                  $’000          $’000        $’000         $’000       $’000


     Revenue from external customers                                               –             –          56                 –       56
     Add interest revenue                                                                                                             795
     Total income                                                                                                                     851


     Segment profit / (loss) before interest                                        –             –       (1,429)        (2,525)    (3,954)
     Add interest revenue                                                                                                             795
     Less interest expense                                                                                                            (26)
     Loss after income tax                                                                                                          (3,185)


     Segment assets and liabilities
     Segment assets                                                           1,649         19,039          28               900   21,616
     Add jointly utilised assets:
     Cash                                                                                                                          24,225
     Interest receivable                                                                                                              215
     Total assets                                                                                                                  46,056


     Segment liabilities                                                           –          (575)           –                –     (575)
     Add liabilities not regularly reported by segment:
     Trade and other payables                                                                                                      (4,543)
     Borrowings                                                                                                                        (72)
     Total liabilities                                                                                                             (5,190)


     Other segment information
     Acquisitions of property, plant & equipment and intangible assets             –         4,803           –               278    5,081
     Depreciation and amortisation expense                                         –             –           –                20       20
     Impairment of investment in joint venture entity                              –             –          58                 –       58
     Share of losses of joint venture entity                                       –             –        1,350                –    1,350




Page 49   WestSide Corporation Limited Annual Report 2010
3(a) Revenue
                                                                                                                                 Consolidated
                                                                                                                         2010                   2009
                                                                                                                        $’000                   $’000
From continuing operations
Sales revenue
Services provided to joint venture entity                                                                                   33                    56
Rig rental income                                                                                                        1,925                     –
Other revenue
Interest                                                                                                                1,284                     795
Total revenue from continuing operations                                                                                3,242                     851


3(b) Other income
Net foreign exchange gains                                                                                                   7                     –


4     Other expenses
Profit before income tax includes the following specific expenses:

Expenses arising from share-based payment transactions
Shares and Options granted to Directors and management                                                                    278                     196
Amount capitalised to deferred exploration and evaluation asset                                                            (47)                   (38)
Expenses arising from share-based payment transactions                                                                     231                    158

Depreciation
Depreciation – Property, plant and equipment                                                                               277                    154
Amount capitalised to deferred exploration and evaluation asset                                                           (175)                  (134)
Depreciation expense                                                                                                       102                    20


Defined contribution superannuation contributions
Defined contribution superannuation expense                                                                                 196                    84
Amount capitalised to deferred exploration and evaluation asset                                                            (31)                   (14)
Defined contribution superannuation contributions                                                                           165                    70


Rental expense relating to operating leases
Minimum lease payments accrued                                                                                             616                     –
Sublease expenses                                                                                                         200                     150
Provision for unavoidable sublease rental payments                                                                        232                      –
Amount capitalised to deferred exploration and evaluation asset                                                          (342)                    (29)
Rental expense relating to operating leases                                                                               706                     121


Finance costs
Interest and finance charges                                                                                                  4                      2
Provisions: unwinding of discount                                                                                           28                     24
Finance costs                                                                                                               32                    26
Under the terms of the Joint Operating Agreements, 50% of the amounts capitalised to deferred exploration and evaluation are re-imbursed to the Group
by the joint venture partners.




                                                                                                      WestSide Corporation Limited Annual Report 2010    Page 50
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     5 Income tax expense
                                                                                                                                    Consolidated
                                                                                                                                2010               2009
                                                                                                                               $’000               $’000
     (a) Income tax expense
     Current tax                                                                                                               (2,844)             (1,935)
     Deferred tax                                                                                                               1,968               1,297
     Current year tax losses not recognised                                                                                      876                 638
     Income tax expense attributable to profit from continuing operations                                                           –                   –


     Deferred income tax expense included in income tax expense comprises:
     Increase in deferred tax assets                                                                                             (390)               (101)
     Increase in deferred tax liabilities                                                                                       2,358               1,398
                                                                                                                                1,968               1,297


     (b) Numerical reconciliation of income tax expense to
         prima facie tax payable
     Loss from continuing operations before income tax expense                                                                 (2,463)             (3,185)
     Tax at the Australian tax rate of 30% (2009 – 30%)                                                                          (739)              (955)
     Tax effect of amounts which are not deductible / (taxable) in calculating taxable income:
      Write down of loans to joint venture entity                                                                                 114                  –
      Share issue costs amortisation                                                                                             (345)              (205)
      Share of net losses of joint venture entity                                                                                   –                451
      Share based payments                                                                                                        83                  59
      Costs in respect of foreign operations                                                                                        5                   7
      Legal fees                                                                                                                    3                  –
      Difference in overseas tax rates                                                                                              3                  5
                                                                                                                                 (876)              (638)
     Current year tax losses not recognised                                                                                      876                 638
     Income tax expense                                                                                                             –                  –


     (c) Amounts recognised directly in equity
     Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss but directly
     debited or credited to equity
      Net deferred tax                                                                                                           (358)               (105)
      Current year tax losses not recognised                                                                                     358                 105
                                                                                                                                    –                  –


     (d) Tax losses
     Unused tax losses for which no deferred tax asset has been recognised                                                     28,895              19,433
     Potential tax benefit @ 30%                                                                                                 8,669              5,830
     $28,758 of unused tax losses were incurred by Singapore subsidiaries (2009: $44,600).




Page 51   WestSide Corporation Limited Annual Report 2010
                                                                                                                                    Consolidated
                                                                                                                               2010                 2009
                                                                                                                              $’000                $’000
(e) Unrecognised temporary differences
Net deferred tax liability comprises temporary differences attributable to:
Share issue costs                                                                                                               894                  535
Professional fees                                                                                                               444                   152
Property, plant and equipment                                                                                                      2                    3
Unrealised foreign exchange losses                                                                                                                      –
Accruals                                                                                                                         34                    24
Employee entitlements                                                                                                            20                    10
Provisions                                                                                                                       85                     7
Deferred tax assets                                                                                                            1,479                  731

Deferred exploration and evaluation costs                                                                                     6,534                 4,601
Capitalised acquisition costs                                                                                                   297                     –
Stores and consumables                                                                                                          212                   107
Interest receivable                                                                                                              88                   65
Unrealised foreign exchange gains                                                                                                  3                    4
Deferred tax liability                                                                                                         7,134                4,777

Net deferred tax liability                                                                                                    5,655                4,046
Unused tax losses not brought to account                                                                                     (5,655)               (4,046)
Deferred tax assets not brought to account                                                                                        –                     –
Net deferred tax liability/(asset) brought to account                                                                             –                     –

(f) Tax consolidation legislation
WestSide Corporation Limited and its wholly owned Australian controlled entities have implemented the tax consolidation legislation. The accounting
policy in relation to this legislation is set out in Note 1(m).

6 Current assets – Cash and cash equivalents
                                                                                                                                    Consolidated
                                                                                                                               2010                 2009
                                                                                                                              $’000                $’000
Cash at bank and in hand                                                                                                      32,151                2,067
Deposits at call                                                                                                             41,643                22,158
                                                                                                                             73,794                24,225


Market risks
Cash at bank and in hand are bearing interest rates between nil and 4.45% (2009: nil and 2.95%).
The deposits are bearing floating interest rates between 5.11% and 6.38% (2009: 3.75% and 4.15%). These deposits have an average maturity of 149 days
(2009: 163 days).
The Group’s policies in relation to monitoring and controlling market risks such as Foreign Exchange Risks and Interest Rate Risks, including the sensitivity
of cash and cash equivalents is set out in Note 27.
Cash of $720,640 (2009: nil) is held as security for bank guarantees in favour of The State of Queensland in respect of the Group’s obligations under various
environmental licences.
Cash of $175,211 (2009: $60,000) is held as collateral to secure a bank guarantee for the Company’s obligations under the terms of the lease of its business
premises. The amount unused on the facility was $6,944 (2009: $6,944) at balance date.
Cash of $70,000 (2009: $50,000) is held as collateral to secure a corporate credit card facility pursuant to a right of set-off. $13,000 (2009: $9,000) was
owed under the corporate credit card facility at balance date.




                                                                                                            WestSide Corporation Limited Annual Report 2010   Page 52
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     (a) Reconciliation of profit / loss after income tax to net cash outflow from operating activities

                                                                                                                                      Consolidated
                                                                                                                                  2010                2009
                                                                                                                                 $’000               $’000
     Loss for the year                                                                                                          (2,463)              (3,185)
     Non-cash rental income                                                                                                      (1,925)                 –
     Loss on disposal of property, plant and equipment                                                                               2                   –
     Impairment of investments                                                                                                        –                 58
     Share of losses of joint venture entities                                                                                     313                1,350
     Non cash employee benefits expense – share based payments                                                                      231                 158
     Depreciation                                                                                                                  102                  20
     Net exchange differences                                                                                                       (11)                  2
     Finance costs – unwinding of discount on provisions                                                                            28                  24
     Change in operating assets and liabilities:
      Increase in receivables and other current assets                                                                          (2,740)              (2,882)
      Increase in trade and other payables                                                                                         638                  619
      Increase in provisions                                                                                                       232                    –
     Net cash outflow from operating activities                                                                                  (5,593)              (3,836)


     (b) Non-cash investing and financing activities
     Issue of Incentive Options to Directors and employees
     During the year, the Company issued 250,000 Incentive Options (2009: 922,000) to employees under the terms of the WestSide Director and Employee
     Incentive Option Plan. The terms of the options issued are set out in more detail in Note 16(e).
     During the year, the Company issued 50,000 ordinary shares with a value of $23,234 (2009: 150,000 ordinary shares with a value of $68,500) to employees
     under the terms of their contracts of employment.
     Offset of amounts owing to / from joint venture entity
     The Group’s investment in a joint venture entity increased during the year as a result of the Parent Company extending a loan of $312,639 (2009: $766,000)
     to the joint venture entity in extinguishment of a receivable owing from the joint venture entity to the Parent Company.




Page 53   WestSide Corporation Limited Annual Report 2010
7 Current assets – Trade and other receivables
                                                                                                                                     Consolidated
                                                                                                                                2010                 2009
                                                                                                                               $’000                $’000
Trade receivables                                                                                                               3,297               2,208
Other receivables                                                                                                                369                  244
Interest receivable                                                                                                              293                   215
Prepayments                                                                                                                        97                   67
                                                                                                                               4,056                 2,734
(b) Past due but not impaired
As at 30 June 2010 trade receivables of $265,346 (2009: nil) were past due (up to 3 months) but not impaired. These relate to re-imburseable exploration
costs from WestSide’s joint venturers who have no history of default. These amounts owing were received subsequent to year end.
Market risks
Trade and other receivables are non-interest bearing.
The Group’s policies in relation to monitoring and controlling market risks such as Foreign Exchange Risks and Interest Rate Risks, including the sensitivity
of trade and other receivables is set out in Note 27.
Fair value and Credit risk
Due to the short term nature of these receivables, their carrying amount is assumed to approximate their fair value.
Interest receivable on term deposits is owed from high-quality financial institutions.
Other receivables comprise amounts owing from the Australian Taxation Office for GST and fuel credits.
Trade receivables comprise amounts owing from joint venturers for their share of exploration costs incurred. The creditworthiness of joint venturers is assessed
at the time that the Group becomes a party to a joint venture and monitored regularly thereafter. These parties have no history of default. The Groups’s rights
to reimbursement of costs incurred as operator are secured by Deeds of Cross Charge over the joint venturers’ interest in the respective tenements.

8 Current assets – Inventories
                                                                                                                                     Consolidated
                                                                                                                                2010                 2009
                                                                                                                               $’000                $’000

Stores and consumables – at cost                                                                                                 706                  358


9 Non-current assets – other
Capitalised drilling rig commissioning costs                                                                                   3,636                 2,179
Capital work in progress                                                                                                         990                     –
                                                                                                                               4,626                 2,179
Capitalised drilling rig commissioning costs are costs which have been incurred by the Group in commissioning a drilling rig which is owned by a third party.
The terms relating to the continued use of the drilling rig are yet to be finalised.
Capital work in progress represents capitalised acquisition costs incurred up to 30 June 2010 for the purchase of a 51% interest in the Meridian SeamGas gas
field assets.




                                                                                                             WestSide Corporation Limited Annual Report 2010   Page 54
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     10 Non-current assets – Property, plant & equipment
                                                                                                                                     Consolidated
                                                                                                                                2010                2009
                                                                                                                                $’000               $’000
     Furniture, fittings and equipment
     Cost                                                                                                                        270                  92
     Less accumulated depreciation                                                                                                (58)                (33)
     Net book amount                                                                                                              212                 59

     Field machinery and equipment
     Cost                                                                                                                       1,553                 763
     Less accumulated depreciation                                                                                               (376)               (176)
     Net book amount                                                                                                             1,177               587

     Vehicles
     Cost                                                                                                                        450                   —
     Less accumulated depreciation                                                                                                (52)                 —
     Net book amount                                                                                                             398                   —

     Total property, plant & equipment
     Cost                                                                                                                       2,273                855
     Less accumulated depreciation                                                                                               (486)               (209)
     Net book amount                                                                                                            1,787                646

     Reconciliation of movements – Furniture, fittings and equipment
     Balance at the start of the year                                                                                              59                 34
     Additions                                                                                                                    183                 42
     Disposals                                                                                                                     (5)                 —
     Depreciation expense                                                                                                         (25)                (17)
     Balance at the end of the year                                                                                               212                 59

     Reconciliation of movements – Field machinery and equipment
     Balance at the start of the year                                                                                            587                 446
     Additions                                                                                                                   993                  278
     Transfers                                                                                                                   (191)                 —
     Depreciation expense                                                                                                        (212)               (137)
     Balance at the end of the year                                                                                              1,177               587

     Reconciliation of movements – Vehicles
     Balance at the start of the year                                                                                               –                  —
     Additions                                                                                                                   247                   —
     Transfers                                                                                                                    191                  —
     Depreciation expense                                                                                                         (40)                 —
     Balance at the end of the year                                                                                              398                   —

     Reconciliation of movements – Total Property, Plant & Equipment
     Balance at the start of the year                                                                                            646                 480
     Additions                                                                                                                  1,423                320
     Disposal                                                                                                                      (5)                 —
     Depreciation expense                                                                                                        (277)               (154)
     Balance at the end of the year                                                                                             1,787                646

     Non-current assets pledged as security
     Refer to Note 14 for details of non-current assets pledged as security by the Parent Entity and its controlled entities.




Page 55   WestSide Corporation Limited Annual Report 2010
11 Non-current assets – Intangible assets – Exploration and evaluation costs
                                                                                                                                   Consolidated
                                                                                                                              2010                   2009
                                                                                                                             $’000                   $’000
Balance at the start of the year                                                                                             15,914                  11,020
Additions                                                                                                                     6,475                   4,761
Restoration asset movement                                                                                                      397                    133
Balance at the end of the year                                                                                              22,786                   15,914


12 Current liabilities – Trade and other payables
Trade payables and accruals                                                                                                  5,692                    4,511
Employee benefits                                                                                                                68                      32
                                                                                                                             5,760                   4,543

Market risks
Trade payables and accruals do not bear interest and the aggregate carrying values of these financial liabilities approximates the net fair values.
The Group’s policies in relation to monitoring and controlling market risks such as Foreign Exchange Risks and Interest Rate Risks, including the sensitivity
of trade and other payables is set out in Note 27.
Liquidity risks
All trade and other payables are expected to be settled within 12 months.
Payables of $13,000 (2009: $9,000) are secured by a right of set-off against cash on deposit.

13 Current liabilities – Borrowings
                                                                                                                                   Consolidated
                                                                                                                              2010                   2009
                                                                                                                             $’000                   $’000
Bank loans – secured                                                                                                             19                     17

Security and fair value disclosures
Information about the security and the fair value of the borrowings is provided in Note 14.
The Group’s policies in relation to monitoring and controlling market risks such as Foreign Exchange Risks and Interest Rate Risks, including the sensitivity
of trade and other payables is set out in Note 27.

14 Non-current liabilities – Borrowings
                                                                                                                                   Consolidated
                                                                                                                              2010                   2009
                                                                                                                             $’000                   $’000
Bank loans – secured                                                                                                             35                     55


(a) Secured liabilities and assets pledged as security
The total secured liabilities (current and non-current) are as follows:

Bank loans – secured                                                                                                            54                      72
Bank loans are secured by a chattel mortgage over specified field vehicles with a carrying value of $86,000 (2009: $93,000).
(b) Fair Value
The carrying amount of current and non-current borrowings is a reasonable approximation of fair value.




                                                                                                           WestSide Corporation Limited Annual Report 2010    Page 56
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     15 Current and non-current liabilities – Provisions
                                                                                                           Provision for       Provision for
                                                                                                        restoration and        unavoidable
                                                                                                          rehabilitation     rental contract
     Consolidated – 2010                                                                                          $’000               $’000          Total $’000
     Balance at the start of the year                                                                                 575                    –                  575
     Additional provisions recognised                                                                                 397                  232                  629
     Charged to the Statement of Comprehensive Income – unwinding of discount                                         28                     –                  28
     Balance at the end of the year                                                                               1,000                    232             1,232

     Comprising
     (a) Current – expected to be expensed within the next 12 months                                                  95                   139                  234
     (b) Non-current – expected to be expensed after one year                                                       905                    93                   998
                                                                                                                  1,000                    232             1,232

     Provision for restoration and rehabilitation
     The Group is required to rehabilitate areas disturbed by its exploration activities. These restoration activities may be performed at any time up to the time
     that the exploration tenement is relinquished. In raising the provision above, it has been estimated that while some of the areas will be rehabilitated in the
     coming year, the majority will be rehabilitated at the expiry of the relevant Authority to Prospect. Further explanation is provided at Note 1(e).
     Provision for unavoidable rental contract
     The Group vacated leased office space in June 2010 as the space was no longer sufficient to accommodate the number of staff required to efficiently
     operate the expanded operations. The provision recognised is the best estimate of future unavoidable lease costs payable under the operating lease after
     considering the likelihood of securing a sub-lessee for the remainder of the lease period.

     16 Contributed equity
                                                                                          2010                 2009                 2010                2009
                                                                        Notes           Shares               Shares               $’000                $’000
     (a) Share capital
     Authorised and issued ordinary shares – fully paid                16(c),(d)
     Quoted on the ASX                                                             250,232,890          110,389,445
     Total contributed equity                                                      250,232,890          110,389,445              107,316              45,266


                                                                                                                                    2010                2009
                                                                        Notes                                                 Securities           Securities
     (b) Other equity securities
     Share options – Incentive Options (unquoted)                       16(e)                                                 2,308,000            2,304,000
     Performance Rights – (unquoted)                                    16(f)                                                  1,581,000                    –
     Total other equity securities                                                                                            3,889,000            2,304,000




Page 57   WestSide Corporation Limited Annual Report 2010
(c) Movements in ordinary share capital

                                                                                                                 Number of               Issue price                 Value
Date                        Details                                                               Notes             shares                         $                 $’000
30 June 2008                Balance                                                                              74,062,000                                          28,144
13 March 2009               Exercise of March 2009 Options                                                           112,000                    0.50                     56
18 March 2009               Exercise of March 2009 Options                                                             9,000                    0.50                       5
23 March 2009               Exercise of March 2009 Options                                                          240,500                     0.50                    120
8 April 2009                Exercise of March 2009 Options                                                        13,659,038                    0.50                  6,830
8 April 2009                Shares issued in lieu of underwritten March 2009 Options                (i)            12,156,907                   0.50                  6,078
8 April 2009                Share placement                                                         (i)          10,000,000                     0.50                  5,000
19 May 2009                 Employee share scheme issue                                             (ii)             150,000                        –                    69
                            Less: Transaction costs arising on share issues                                                                                           (1,036)
30 June 2009                Balance                                                                             110,389,445                                         45,266
29 January 2010             Employee share scheme issue                                             (ii)              50,000                        –                     23
12 April 2010               Share placement                                                                       14,677,000                     0.55                 8,072
18 May 2010                 Entitlements issue 1:1                                                                125,116,445                    0.45                56,302
                            Less: Transaction costs arising on share issues                                                                                          (2,347)


30 June 2010                Balance                                                                            250,232,890                                          107,316
(i) These shares were issued by a combination of private placement and underwriting of the shortfall in March 2009 Options lapsing on their expiry date of 31 March 2009.
(ii) Shares were issued to employees as equity incentives for nil consideration. The value recognised in contributed equity is the market value of the shares on the date they
     were granted.

(d)    Ordinary shares
Ordinary shares have no par value.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts
paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, and upon a
poll each share is entitled to one vote.
(e)    Incentive Options
At 30 June 2010, there were 2.308 million (2009: 2.304 million) unexpired Incentive Options on issue.
Incentive Options have been issued to Directors and senior staff to align their interests with those of shareholders in maximising shareholder value. The
Incentive Options cannot be exercised until their vesting date and must be exercised before their expiry date. Generally, Incentive Options lapse 90 days
after an employee/contractor ceases to be engaged by the Company. If, during the life of the Incentive Options, the Company makes a bonus issue to its
shareholders, the option holder will be entitled, upon later exercise of that option, to receive additional shares as if the option holder had exercised the
option prior to the record date for the bonus issue. The rights of option holders will also be changed to the extent necessary to comply with the ASX Listing
Rules applying to a reorganisation of capital. The Board retains the discretion to waive exercise conditions including where there is a change of control of
the Company.




                                                                                                                          WestSide Corporation Limited Annual Report 2010        Page 58
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



      Consolidated – 2010                                                                                     Number of Incentive Options
                                                                                                                                                         Outstanding at           Exercisable at
                                                            Exercise price             Balance at the        Granted during Forfeited during              the end of the          the end of the
     Vesting date                       Expiry date             (revised)            start of the year             the year         the year                      year (i)                 year
     10 January 2010                10 January 2013                $0.3614                 1,240,000                        –                       –           1,240,000             1,240,000
     1 July 2010                       30 June 2012                $0.7714                   142,000                        –              (72,000)                70,000                          –
     1 July 2011                       30 June 2013                $0.4999                   422,000                100,000                (24,000)              498,000                           –
     1 July 2011                       29 June 2013                $0.3614                  500,000                         –                       –            500,000                           –
     1 July 2012                       30 June 2014                  $0.50                            –             150,000               (150,000)                       –                        –


     Total 30 June 2010                                                                   2,304,000                250,000                (246,000)             2,308,000             1,240,000
                                                                                                                         (ii)                    (ii)
     Weighted average exercise price ($)                                                       $0.55                $0.56                   $0.63                      $0.40                $0.36
     (i) The weighted average remaining contractual life of Incentive Options outstanding at the end of the year is 991 days (2009: 1,346 days).
     (ii) The weighted average exercise price is calculated using the exercise price which applied at the time the Incentive Options were granted or forfeited.


      Consolidated – 2009                                                                                                Number of Incentive Options
                                                                                                 Balance at                                                                    Outstanding at
                                                                       Exercise             the start of the                Granted                 Forfeited                   the end of the
     Vesting date                               Expiry date               price                        year          during the year           during the year                           year (i)
     10 January 2010                        10 January 2013                $0.50                    1,660,000                        –                   (420,000)                   1,240,000
     1 July 2010                               30 June 2012                  $0.91                   359,000                         –                    (217,000)                   142,000
     1 July 2011                               30 June 2013                $0.64                             –                  422,000                           –                   422,000
     1 July 2011                               29 June 2013                $0.50                             –                  500,000                           –                   500,000
     Total 30 June 2009                                                                             2,019,000                   922,000                  (637,000)                  2,304,000
     Weighted average exercise price ($)                                                                  $0.57                   $0.56                        $0.64                       $0.55
     No Incentive Options were exercisable at 30 June 2009.
     The weighted average fair value of Incentive Options granted during the year ended 30 June 2010 was 27 cents per option (2009: 23 cents). The fair value of
     options granted are determined using a Black-Scholes-Merton option pricing model that takes into account the following variables:


                                                               Year ended 30 June 2010                                                    Year ended 30 June 2009
     Grant date                                        5 July 2009                    30 November 2009            25 September 2008           18 December 2008                  24 July 2008
     Expiry date                                      30 June 2014                        30 June 2013               29 June 2013               29 June 2013                    30 June 2013
     Share price at grant date                            $0.57                             $0.46                       $0.51                           $0.35                      $0.57
     Exercise price                                       $0.50                            $0.638                       $0.50                           $0.50                      $0.64
     Expected share price volatility                       70%                              70%                         70%                             70%                         70%
     Expected dividends                                     Nil                               Nil                        Nil                             Nil                         Nil
     Risk free interest rate                            5.09% pa                          4.74% pa                    5.52% pa                      3.57% pa                     6.38% pa

     The expected life of the options is assumed to be approximately mid-way between the vesting date and expiry date.
     The expected price volatility is based on the Company’s share price history and the historic volatility (based on the expected life of the options) of a
     selection of junior coal seam gas exploration companies.
     Revision of Incentive Options exercise prices
     On 28 May 2010, the exercise prices of all outstanding Incentive Options were revised in accordance with ASX Listing Rules as a result of the 1:1
     Entitlement Issue of ordinary shares. The changes are set out in the table below:

                                                                             Exercise price
      Options expiry date                                         Original                    Revised
      30 June 2012                                                 $0.91                      $0.7714
      10 Jan 2013                                                  $0.50                      $0.3614
      29 June 2013                                                 $0.50                      $0.3614
      30 June 2013                                                $0.638                      $0.4999



Page 59   WestSide Corporation Limited Annual Report 2010
The fair values of the options before and after the revision were assessed as at the modification date and any incremental value will be expensed over the
remaining vesting period, or has been expensed in the current financial year where the options have already vested.
The weighted average incremental increase in fair value as a result of the revision was $0.04 per Incentive Option.
Consistent with the valuation methodology used for the grant of new options, the fair value of the Incentive Options were determined using a Black-
Scholes-Merton option pricing model, taking into account the expiry dates, the $0.44 share price at the revision date, 70% expected share price volatility, no
expected dividends and a risk free interest rate of 4.53% pa.
(f) Performance Rights
At 30 June 2010 there were 1,581,000 Performance Rights on issue (2009: nil).
Following the Government’s changes to the taxation of employee equity incentive schemes, the Board conducted a review of the Company’s equity
incentive plans in late 2009. A revised employee equity incentive plan was launched in March 2010.
Eligible employees now have the opportunity to participate in the Employee Performance Rights Plan which will replace the existing Incentive Option Plan
as contractual obligations mature.
Under the new plan, eligible employees were granted an allocation of Performance Rights, while new employees may be granted Performance Rights upon
the commencement of service. These will vest upon completion of a specified minimum service period. A further annual allocation of Performance Rights
will vest upon the achievement of various company and personal performance targets and service milestones.
The new plan is designed to align the performance of employees with that of shareholders and to assist in the retention of experienced personnel.
Each Performance Right that satisfies its vesting conditions can be converted to one ordinary share for nil consideration. Upon conversion, the issued ordinary
shares will be subject to a holding lock until the earlier of seven years from grant, or cessation of employment.
The Board retains the discretion to waive vesting conditions in certain instances where there is a takeover offer for the Company or other events such as a
merger or scheme of arrangement.
The following Performance Rights were issued during the year:

                                                                                                                                           Weighted average fair
Number                   Vesting Conditions                                                                                                  value at grant date
1,210,000                Vest on 31 December 2012 if the participant is employed at that date.                                                     $0.54
                         Vest after 31 December 2010 to participants employed at that time at the discretion of the Board after
371,000                                                                                                                                            $0.54
                         considering company and personal performance during 2010.
A further 590,000 Performance Rights were granted to new employees before 30 June 2010 but will not be issued until each employee has completed their
probationary service period. These Performance Rights have a weighted average fair value at grant date of $0.48.
The fair value of the Performance Rights is the market value of the Company’s Ordinary Shares on the date the Performance Rights were granted.

17 Reserves and retained profits
                                                                                                                                          Consolidated
                                                                                                                                   2010                   2009
                                                                                                                                  $’000                  $’000
(a) Reserves
Share option reserve                                                                                                                571                    393
Performance rights reserve                                                                                                           77                      –
Foreign currency translation reserve                                                                                                  –                     (1)
Total reserves                                                                                                                     648                     392

Movements:
Share option reserve
Balance at the start of the year                                                                                                    393                    266
Employee option expense                                                                                                             178                     127
Balance at the end of the year                                                                                                      571                    393

Performance rights reserve
Balance at the start of the year                                                                                                      –                      –
Employee performance rights expense                                                                                                  77                      –
Balance at the end of the year                                                                                                       77                      –

Foreign currency translation reserve
Balance at the start of the year                                                                                                     (1)                     –
Currency translation differences arising during the year                                                                              1                     (1)
Balance at the end of the year                                                                                                        –                     (1)



                                                                                                               WestSide Corporation Limited Annual Report 2010     Page 60
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



                                                                                                                                         Consolidated
                                                                                                                                   2010                   2009
                                                                                                                                  $’000                  $’000
     Share based payment reserve
     Balance at the start of the year                                                                                                    –                    –
     Employee share expense                                                                                                           23                    69
     Transfer to contributed equity upon issue of shares                                                                             (23)                   (69)
     Balance at the end of the year                                                                                                      –                    –

     (b) Accumulated losses
     Movements in accumulated losses were as follows:
     Balance at the start of the year                                                                                             (4,792)               (1,607)
     Net loss for the year                                                                                                        (2,463)               (3,185)
     Balance at the end of the year                                                                                               (7,255)               (4,792)

     (c) Nature and purpose of reserves
     Share option reserve
     The share option reserve is used to recognise the fair value of share options granted or issued. When options are exercised the value attributed to those
     options is transferred to contributed equity.
     Performance rights reserve
     The performance rights reserve is used to recognise the fair value of share rights granted or issued. When share rights vest and shares are issued, the value
     attributed to those rights is transferred to contributed equity.
     Foreign currency translation reserve
     The foreign currency translation reserve represents exchange differences arising from the translation of any net investment in foreign entities. The reserve
     is recognised in profit and loss when the net investment is disposed of.
     Share based payment reserve
     The fair value of Ordinary Shares granted but not issued is credited to the share based payment reserve. When the shares are issued, the value of the
     shares is transferred to contributed equity.

     18 Subsidiaries
     The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy
     described in Note 1(b):

                                                                                           Country of
          Name of entity                                                                                 Class of shares            Equity holding *
                                                                                         incorporation
                                                                                                                                 2010                     2009
                                                                                                                                    %                        %
     WESTSIDE ATP 688P Pty Ltd                                                             Australia        Ordinary               100                      100
     WESTSIDE ATP 769P Pty Ltd                                                             Australia        Ordinary               100                      100
     WESTSIDE CSG A Pty Ltd                                                                Australia        Ordinary               100                        –
     WESTSIDE CSG B Pty Ltd (formerly WESTSIDE ATP 693P Pty Ltd)                           Australia        Ordinary               100                      100
     WESTSIDE CSG C Pty Ltd (formerly WESTSIDE ATP 811P Pty Ltd)                           Australia        Ordinary               100                      100
     WESTSIDE CSG D Pty Ltd                                                                Australia        Ordinary               100                        –
     WESTSIDE CSG E Pty Ltd                                                                Australia        Ordinary               100                        –
     WESTSIDE CSG F Pty Ltd                                                                Australia        Ordinary               100                        –
     WESTSIDE MARKETING Pty Ltd                                                            Australia        Ordinary               100                      100
     WESTSIDE CSG HOLDINGS Pte Ltd                                                         Singapore        Ordinary               100                      100
     WESTSIDE KPC HOLDINGS Pte Ltd                                                         Singapore        Ordinary               100                      100
     * The proportion of ownership interest is equal to the proportion of voting power held.

     Deed of cross guarantee
     WestSide Corporation Ltd, WestSide ATP 688P Pty Ltd and WestSide ATP 769P Pty Ltd are parties to Deeds of Cross Charge with their joint venture
     partners. Pursuant to the Deeds, each party has granted a fixed and floating charge over their participating interest in the exploration tenements to secure
     their prospective liabilities under the Joint Operating and Production Agreements to a maximum of $1 million in the event of default.



Page 61    WestSide Corporation Limited Annual Report 2010
19 Joint ventures
(a) Jointly controlled assets
Subsidiaries have entered into joint ventures to jointly explore, appraise and develop coal seam gas in specific exploration tenements in Queensland’s
Bowen Basin. Interests in these joint ventures are set out below:

                                                                                                                                            Consolidated
Joint venture                            Principal activities                                                                          2010                   2009
Bowen Basin ATP769P                      Coal seam gas exploration                                                                     50%                    50%
Bowen Basin ATP688P                      Coal seam gas exploration                                                                     50%                    50%
The Group’s interests in the assets employed in the joint ventures are included in the consolidated Balance Sheet in accordance with the accounting policy
set out in Note 1(b) under the following classifications:

                                                                                                                                            Consolidated
                                                                                                                                       2010                   2009
                                                                                                                                      $’000                  $’000
Non-current assets
Intangible assets – exploration and evaluation costs                                                                                 22,786                  15,914
The Company had incurred liabilities of $2,652,576 (2009: $3,720,627) in respect of operations of joint venture assets at balance date. Trade and other receivables
include amounts of $2,895,292 (2009: $2,180,354) which are receivable from joint venturers for their share of joint exploration costs incurred up to the balance date.
Provisions include $1,000,214 (2009: $575,000) which represent the Group’s share of future restoration and rehabilitation costs of joint venture assets.
Capital expenditure commitments relating to the joint ventures are set out in Note 20. There are no contingent liabilities relating to the joint venture activities.

(b) Jointly controlled entities
The interests in jointly controlled entities are accounted for in the consolidated financial statements using the equity method of accounting.
A subsidiary has investments in jointly controlled entities. Investments in jointly controlled entities include funds advanced to a joint venture entity which
are repayable on demand. The Parent Entity does not expect to require repayment of these advances in the next twelve months.

   Movements in carrying amounts                                                                                                              Consolidated
                                                                                                                                       2010                   2009
                                                                                                                                      $’000                   $’000
Carrying amount at the beginning of the financial year                                                                                     –                         –
Investment in joint venture entities                                                                                                     313                  1,408
Share of losses after income tax                                                                                                        (313)                 (1,122)
Share of losses from prior period previously unrecognised                                                                                 –                    (228)
Impairment loss recognised in the year                                                                                                    –                     (58)
Carrying amount at the end of the financial year                                                                                           –                         –


Unrecognised share of losses at the beginning of the financial year                                                                        –                    228
Unrecognised share of losses for the period                                                                                              314                        –
Unrecognised share of losses for prior periods recognised in this period                                                                  –                    (228)
Unrecognised share of losses at the end of the financial year                                                                             314                        –

                                                                                                                                        Ownership interest
Name of jointly controlled entity                                             Place of incorporation                                 2010                    2009
PT Seamgas Indonesia                                                                 Indonesia                                        50%                    50%
KPC CBM Pte Ltd                                                                      Singapore                                        50%                    50%
Arutmin CBM Pte Ltd                                                                  Singapore                                        50%                    50%
Westprima Resources Pte Ltd                                                          Singapore                                        50%                    50%
Kalenergy Pte Ltd                                                                    Singapore                                        50%                    50%
Tansar Gas Pte Ltd                                                                   Singapore                                        50%                    50%
There are no contingent liabilities relating to jointly controlled entities. The Group’s share of capital commitments of jointly controlled entities are set out in
Note 20(a).




                                                                                                                   WestSide Corporation Limited Annual Report 2010       Page 62
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     The aggregate amount of assets, liabilities, revenues and costs relating to jointly controlled entities are set out below:

                                                                                                                                                        Consolidated
                                                                                                                                                   2010                   2009
     Share of jointly controlled entities’ assets and liabilities                                                                                 $’000                  $’000
     Current assets                                                                                                                                   48                    270
     Non-current assets                                                                                                                               10                     66
     Total assets                                                                                                                                     58                   336
     Current liabilities                                                                                                                             214                    166
     Total liabilities                                                                                                                               214                    166
     Share of jointly controlled entities’ revenue and expenses
     Revenue                                                                                                                                          28                     63
     Expenses                                                                                                                                       (655)                 (1,185)
     Loss                                                                                                                                           (627)                 (1,122)

     20 Commitments
     (a) Capital commitments
     Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

                                                                                                                                                        Consolidated
                                                                                                                                                   2010                   2009
                                                                                                                                                  $’000                  $’000
     Intangible assets – exploration and evaluation costs(1)
     Payable:
     Within one year                                                                                                                             10,589                  8,669
                                                                                                                                                 10,589                  8,669
                                                                     (3)
     Non-current assets – investments in joint venture entities
     Payable:
     Within one year                                                                                                                                225                    308
                                                                                                                                                    225                    308
                                                                                                     (4)
     Non-current assets – Gas field development assets and Property, plant and equipment
     Payable:
     Within one year                                                                                                                             28,340                       –
                                                                                                                                                 28,340                       –
     (1) Although the Group has not necessarily contracted with suppliers for the exploration work, the Group is committed to conducting exploration and appraisal programs with its
         joint venturers. These amounts represent WestSide’s share of expected expenditure required to complete these approved work programs. Included in this commitment is an
         amount of $2 million (2009: nil), being the estimated fair value of two exploration tenements to be acquired with the issue of 3,500,000 ordinary shares of the Company.
     (2) The exploration commitments described at (1) above are those of each Group company which holds the interest in the Authority to Prospect. The Parent Entity has committed
         to provide funding for these programs.
     (3) The Parent has committed to contribute funding to the operations of PT Seamgas Indonesia, a jointly-controlled entity. The above amount represents the Parent’s share of
         expected expenditure in the foreseeable future.
     (4) The Group has contracted to acquire a 51% interest in assets comprising gas fields, pipelines and gas reserves. The acquisition was completed in July 2010. In addition to the
         acquisition costs disclosed above, the Group has committed, after completion of the acquisition, to invest up to $30 million (2009: nil) over the two years to 30 June 2012 to
         fund the development of the gas field to increase gas production. The Parent Entity has committed to provide funding for these programs.

     The capital commitments for exploration and evaluation costs above include capital expenditure commitments of $8,589,000 (2009: $8,669,000) relating
     to joint ventures listed in Note 19(a).
     (b) Operating lease commitments
     The Group leases offices under non cancellable operating leases. The leases have varying terms, escalation clauses and renewal rights.

                                                                                                                                                        Consolidated
                                                                                                                                                   2010                   2009
                                                                                                                                                  $’000                  $’000
     Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
     Within one year                                                                                                                                 707                   229
     Later than one year but less than five years                                                                                                    656                    620
                                                                                                                                                   1,363                   849
     The operating lease commitments above include amounts in respect of an unavoidable rental contract for which a provision has been recognised as set out in Note 15.


Page 63   WestSide Corporation Limited Annual Report 2010
(c) Remuneration commitments

                                                                                                                                     Consolidated
                                                                                                                              2010                    2009
                                                                                                                             $’000                   $’000
Commitments for the payment of salaries and other remuneration under long term employment contracts in existence
at the reporting date but not recognised as liabilities, payable:
Within one year                                                                                                                340                     393
                                                                                                                               340                     393

21 Related party transactions
(a) Parent Entity and related parties
The Parent Entity, and ultimate Australian Parent Entity within the Group is WestSide Corporation Limited.
Interests in subsidiaries are set out in Note 18.
Interests in joint ventures and jointly-controlled entities are set out in Note 19.
(b) Key management personnel
Disclosures relating to key management personnel are set out in Note 22 and in paragraph (e) below.
(c) Transactions with related parties
The following transactions occurred with related parties:

                                                                                                                                     Consolidated
                                                                                                                              2010                    2009
                                                                                                                                  $                      $
Costs incurred as operator of joint venture and on-charged to joint venture                                             13,798,741              9,217,641
Contributions to joint venture costs                                                                                     6,920,987            4,608,620
Loans advanced to joint venture entity                                                                                     312,639              1,408,172
Costs incurred on behalf of joint venture entity and on-charged to joint venture entity                                    254,005                  419,554
Provision of services to joint venture entity                                                                               30,816                  55,563
(d) Outstanding balances arising from transactions with related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:

                                                                                                                                     Consolidated
                                                                                                                              2010                    2009
                                                                                                                                  $                      $
Current assets – trade and other receivables
From joint venture entities for services to, and costs incurred on behalf of
joint venture entities                                                                                                            –                  27,816
From joint ventures for costs incurred as operator of joint venture                                                      2,895,292             2,180,354
Current liabilities – trade and other payables
To joint venture operator for the Group’s share of joint venture costs                                                       3,274                       –
(e) Other transactions with key management personnel
A Director, N Mitchell, controls Mitchell Energy Group Pty Ltd and Mitchell Equipment Hire Pty Ltd, companies which service the petroleum industry.
During the year, the Group purchased and rented equipment and rented storage space from these companies on normal commercial terms and conditions.
During the year the Company agreed to issue 3.5 million shares to a Director, Mr A Karoll as consideration for the purchase of Nazara Energy Pty Ltd
(Nazara) a company controlled by Mr Karoll which was the preferred tenderer for two exploration tenements in Queensland’s Galilee Basin. The acquisition
was approved by WestSide shareholders in November 2009 and was completed subsequent to year end after the final grant of the tenements to Nazara.
Prior to the appointment of J Clarke as a Director of WestSide, the Group entered into an agreement for financial advisory services in connection with the
acquisition of gas field interests with Infrastructure Capital Group Limited. Mr Clarke is Managing Director and a significant shareholder of Infrastructure
Capital Group.




                                                                                                           WestSide Corporation Limited Annual Report 2010    Page 64
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



                                                                                                                                            Consolidated
     Aggregate amounts of each of the above types of transactions with key management personnel                                      2010                   2009
                                                                                                                                           $                   $
     Amounts recognised as expense: purchase and rental of gas field equipment and services                                          1,346                     –
     Amounts recognised as other non-current assets – Capital work in progress: advisory fees capitalised                        100,000                      –
     Amounts recognised as non-current assets – Intangible assets – exploration and evaluation costs: purchase and rental
     of gas field equipment and services                                                                                             1,000                     –
     Amounts recognised as other non-current assets – Capitalised drilling rig commissioning costs                                  5,000                     –
     Aggregate amount of assets at the end of the reporting period relating to the above types of other transactions with
     key management personnel.
     Current assets                                                                                                               5,000                       –
     Non - current assets                                                                                                        101,000                      –
     Aggregate amounts payable to key management personnel at the end of the reporting period relating to the above
     types of transactions.
     Current liabilities                                                                                                         101,406                      –


     22 Key management personnel disclosures
     (a) Directors
     The following persons were Directors of WestSide Corporation Limited during the financial year:

                                                                                                              Period of appointment (year ended 30 June)
     Name                        Position                                                             2010                             2009
     A Karoll                    Chairman and Acting Chief Executive Officer                          Full year                        From 3 September 2008
                                 Director (Non-executive)                                                                              To 3 September 2008


     Non-executive Directors
     J Clarke                    Director                                                             From 28 May 2010                 –
     A Gall                      Director                                                             Full year                        Full year
     T Karoll                    Director                                                             Full year                        Full year
     N Mitchell                  Director                                                             Full year                        From 15 December 2008
     R Neale                     Director                                                             From 28 May 2010                 –
     (b) Other key management personnel
     The following persons also had authority and responsibility for planning, directing and controlling the activities of the Company and the Group, directly or
     indirectly, during the financial year:

                                                                                                              Period of employment (year ended 30 June)
     Name                        Position                                                             2010                             2009
     P Dingle                    Moura Area Manager                                                   From 21 June 2010                –
     D Galvin                    Chief Financial Officer and Company Secretary                        Full year                        Full year
     A Knight                    Exploration Manager                                                  From 19 April 2010               –
     S Mewing                    Chief Operating Officer                                              Full year                        From 13 October 2008
     Other group executives
     K Potter                    Operations manager - Indonesia                                       Full year                        Full year
     (c) Key management personnel compensation
                                                                                                                             Consolidated
                                                                                                                  2010                              2009
                                                                                                                    $                                  $
     Short term employee benefits                                                                             1,278,871                          1,333,537
     Post employment benefits                                                                                  113,895                              58,954
     Share based payments                                                                                     196,340                            134,548
                                                                                                             1,589,106                          1,527,039
     Detailed remuneration disclosures can be found in sections A-C of the Remuneration Report, included within the Directors’ Report attached to the financial
     statements.




Page 65   WestSide Corporation Limited Annual Report 2010
(d) Equity instrument disclosures relating to key management personnel
Options, Performance Rights and shares provided as remuneration and shares issued on exercise of such options
Details of Incentive Options, Performance Rights and shares provided as remuneration and shares issued on the exercise of such options, together with
terms and conditions of the options, can be found in section D (Share-based compensation) of the Remuneration Report, included within the Directors’
Report attached to the financial statements.
(i)     Option holdings
The numbers of options over ordinary shares in the Company held during the financial year by each Director of WestSide Corporation Limited and other key
management personnel of the Group, including their personally related parties, are set out below.
No March 2009 Options were on issue at any time in the year ended 30 June 2010. In the year to 30 June 2009, the following March 2009 Options were on issue:

      March 2009 Options – 2009 (Number of options)
                                                                   Held at the start of                                                        Held at the end of
Name                                                                          the year                Exercised          Other changes                   the year
Directors of WestSide Corporation Limited
M Cavell                                                                       40,000                        —                 (40,000)                         —
K Farrell                                                                     200,000                 (200,000)                       —                         —
A Gall                                                                        100,000                  (24,000)                 (76,000)                        —
A Karoll                                                                     6,645,000                       —              (6,645,000)                         —
T Karoll                                                                      100,000                 (100,000)                       —                         —

Other key management personnel of the Group
D Galvin                                                                        5,000                   (5,000)                       —                         —

      Incentive Options – 2010 (Number of options)
                                                                                     Granted as                                Vested and
                                                         Held at the start        compensation      Held at the end of   exercisable at the     Unvested at the
Name                                                          of the year        during the year              the year    end of the year(1)     end of the year
Directors of WestSide Corporation Limited
A Gall                                                             300,000                     —             300,000               300,000                      —
A Karoll                                                           310,000                     —             310,000               300,000               10,000
T Karoll                                                           200,000                     —             200,000              200,000                       —

Other key management personnel of the Group
D Galvin                                                           407,000                     —            407,000               300,000               107,000
S Mewing                                                           300,000                     —           300,000                         —           300,000
K Potter                                                           300,000                100,000          400,000                         —           400,000
(1) These options vested during the financial year
No Incentive Options were exercised during the year (2009: nil).

      Incentive Options – 2009 (Number of options)
                                                                                     Granted as
                                                              Held at the         compensation         Other changes          Held at the       Unvested at the
Name                                                     start of the year       during the year      during the year      end of the year       end of the year
Directors of WestSide Corporation Limited
M Cavell                                                           300,000                     —            (300,000)                      —                    —
A Gall                                                             300,000                     —                    —             300,000               300,000
A Karoll                                                           310,000                     —                    —              310,000              310,000
T Karoll                                                           200,000                     —                    —             200,000              200,000


Other key management personnel of the Group
L Brown                                                            190,000                     —             (190,000)                     —                    —
D Galvin                                                           345,000                 62,000                   —              407,000              407,000
S Mewing                                                                 —                300,000                   —             300,000              300,000
K Potter                                                                 —                300,000                   —             300,000              300,000



                                                                                                              WestSide Corporation Limited Annual Report 2010       Page 66
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     (ii) Performance rights holdings
     The numbers of Performance Rights held during the financial year by each Director of WestSide Corporation Limited and other key management personnel
     of the Group, including their personally related parties, are set out below.
     In 2009 there were no Performance Rights on issue.

          Incentive Options – 2010 (Number of rights)
                                                                                                         Granted as
                                                                                      Held at the     compensation        Held at the      Unvested at the
     Name                                                                        start of the year   during the year   end of the year      end of the year
     Other key management personnel of the Group
     P Dingle                                                                                   —          110,000            110,000(1)           110,000
     D Galvin                                                                                   —          410,000           410,000              410,000
     A Knight                                                                                   —          270,000           270,000(1)           270,000
     S Mewing                                                                                   —          483,000           483,000              483,000
     (1) These Performance Rights had been granted, but not issued at the end of the year.
     No Performance Rights were vested and exercisable at the end of the year.
     (iii) Share holdings
     The numbers of shares in the Company held during the financial year by each Director of WestSide Corporation Limited and other key management
     personnel of the Group, including their personally related parties, are set out below.

          Ordinary shares – 2010 (Number of shares)
                                                                  Held at the      Other changes        Held at the
     Name                                                    start of the year    during the year    end of the year
     Directors of WestSide Corporation Limited
     A Gall                                                          224,000             224,000           448,000
     A Karoll                                                      9,243,845           4,568,925          13,812,770
     T Karoll                                                        300,000              40,000           340,000
     N Mitchell                                                    2,594,069            3,027,269         5,621,338


     Other key management personnel of the Group
     D Galvin                                                          15,000             115,000           130,000
     S Mewing                                                        100,000             100,000           200,000

          Ordinary shares – 2009 (Number of shares)
                                                                                      Granted as
                                                                  Held at the      compensation       From exercise     Other changes      Held at the end
     Name                                                    start of the year    during the year        of options    during the year         of the year
     Directors of WestSide Corporation Limited
     M Cavell                                                         80,000                    –                 –          (80,000)                    –
     K Farrell                                                      400,000                     –          200,000         (600,000)                     –
     A Gall                                                         200,000                     –           24,000                  –             224,000
     A Karoll                                                     13,290,000                    –                 –         (4,046,155)          9,243,845
     T Karoll                                                       200,000                     –           100,000                 –             300,000
     N Mitchell                                                             –                   –                 –         2,594,069            2,594,069


     Other key management personnel of the Group
     D Galvin                                                         10,000                    –             5,000                 –               15,000
     S Mewing                                                               –            100,000                  –                 –             100,000




Page 67    WestSide Corporation Limited Annual Report 2010
23 Remuneration of auditors
During the year the following fees were paid or payable for services provided by PricewaterhouseCoopers, the auditor of the Parent Entity:

                                                                                                                                       Consolidated
                                                                                                                                  2010                    2009
                                                                                                                                      $                       $
(a) Audit services
Audit and review of financial reports                                                                                           149,913                122,320


(b) Non-audit services
Taxation services
Taxation return preparation                                                                                                      8,000                   8,000
Taxation advice                                                                                                                  28,132                       —
Research and development tax rebate advice                                                                                      13,369                   4,900
GST advice                                                                                                                      32,236                    7,550
Total remuneration for taxation services                                                                                         81,737                  20,450

Other services
Review of accounting treatment of specific transactions                                                                          17,000                        —

The following fees were paid or payable for services provided by related practices of PricewaterhouseCoopers
Australian firm:
Other services
Advice on potential business acquisitions                                                                                       45,082               183,906
Total non-audit services                                                                                                       143,819               204,356
It is the Group’s policy to employ PricewaterhouseCoopers on assignments additional to their statutory audit duties where PricewaterhouseCoopers’
expertise and experience with the Group are important. These assignments are principally tax advice, or where PricewaterhouseCoopers is awarded
assignments on a competitive basis. It is the Group’s policy to seek competitive tenders for all major consulting projects.
Approval from the Audit and Compliance Committee is required for non-audit assignments.

24 Earnings per share
                                                                                                                                          Consolidated
                                                                                                                                  2010                    2009
                                                                                                                                  Cents                   Cents
(a) Basic and diluted earnings per share
Loss from continuing operations attributable to the ordinary equity holders of the Company                                         (1.92)                  (3.87)


                                                                                                                                          Consolidated
                                                                                                                                  2010                    2009
                                                                                                                                 $’000                    $’000
(b) Reconciliations of earnings used in calculating earnings per share
Basic and diluted earnings per share
Loss attributable to the ordinary equity holders of the Company used in calculating basic and diluted earnings per share         (2,463)                  (3,185)


                                                                                                                                          Consolidated
                                                                                                                                  2010                    2009
                                                                                                                               Number                 Number
(c) Weighted average number of shares used as the denominator
Basic and diluted earnings per share
Weighted average number of ordinary shares used as the denominator in calculating basic and diluted earnings per share     128,326,678             82,324,441
(d) Information concerning the classification of securities
Potential shares that may arise from share options and Performance Rights, in relation to the Company’s recorded loss for the year, are anti-dilutive and
have not been used to calculate diluted loss per share. Details of options and rights are set out in Notes 16(e) and 16(f).



                                                                                                               WestSide Corporation Limited Annual Report 2010      Page 68
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     25 Events occurring after the balance sheet date
     Effective 1 July 2010, the Group completed the acquisition of a 51% interest in the Dawson Seamgas gas fields in Queensland’s Bowen Basin. The financial
     effects of this transaction have not been brought to account at 30 June 2010. The Group paid $26.8 million to acquire the interest in the assets. The
     acquisition cost will be disclosed as Non-current assets. The Group provided bank guarantees totalling $5.02 million in respect of its obligations under a
     Co-Development Agreement and gas supply agreements. Cash of $5.02 million is held as security for this facility.
     On 29 September 2010, the Company issued 3,500,000 Ordinary Shares to Director, Angus Karoll to acquire Nazara Energy Pty Ltd, a company which holds
     a 100% interest in two newly-issued exploration tenements (ATP974P and ATP978P) in Queensland’s Bowen Basin. This transaction was approved by the
     Company’s shareholders at the Annual General Meeting in November 2009.

     26 Contingencies
     Guarantees
     For information about guarantees given by the Group and Parent entity, please refer to Note 6 and Note 18.

     27 Financial risk management
     The Group’s seeks to minimise potential adverse effects on the financial performance of the Group arising from market risks (including currency risk), credit
     risk and liquidity risk. The Group has implemented a range of policies and procedures designed to assess and mitigate these risks.
     Market risk – Foreign exchange risk
     The Group aims to limit its exposure to foreign currency fluctuations for major firm orders of equipment and inventories denominated in foreign currency.
     The Group enters into agreements with suppliers of equipment where the prices are fixed in foreign currency – predominantly US Dollars. Where services
     are provided to foreign customers, the Group denominates amounts payable in Australian currency to limit its exposure to foreign currency fluctuations.
     In order to protect against exchange rate movements, the Group may use US Dollar bank accounts to purchase US Dollars to match the expected timing of
     foreign currency payments where firm orders have been placed.
     The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in equity. When the cash flows
     occur, the Group adjusts the initial measurement of the component recognised in the Balance Sheet by the related amount deferred in equity. No amounts
     have been recognised in equity; removed from equity and included in profit or loss; or removed from equity and included in the carrying amount of non-
     financial assets during the year (2009: nil).
     At 30 June 2010, the Group held no foreign currency to cover specific firm orders denominated in foreign currency as no material orders were outstanding
     (2009: nil).
     Market risk – Interest rate risk
     The Group’s borrowings disclosed in Note 13 and Note 14 are fixed interest liabilities and are not subject to interest rate risk. The Group has no other
     borrowings as at 30 June 2010.
     Interest earned on available cash is managed by depositing surplus funds in fixed term deposits to optimise interest revenue taking into account forecast
     cash flow requirements. Further detail is set out in Note 6.
     Market risk – Sensitivity analysis
     The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to market risks:

          2010 Consolidated                                                       Foreign exchange risk                                   Interest rate risk
                                                                          -10%                                +10%                     -10%              +10%
                                              Carrying
                                              amount            Profit            Equity             Profit            Equity             Profit              Profit
                                                 $’000          $’000             $’000             $’000             $’000             $’000              $’000
     Financial assets
     Cash and cash equivalents                  73,794              —                 —                   —               —              (390)                 390
     Trade and other receivables                 3,959              —                 —                   —               —                   —                 —
     Financial liabilities
     Trade and other payables                   (5,692)             (5)               —                   4               —                   —                 —
     Borrowings                                    (54)             —                 —                   —               —                   —                 —
     Total increase / (decrease)                                    (5)               —                   4               —              (390)                 390




Page 69    WestSide Corporation Limited Annual Report 2010
   2009 Consolidated                                                        Foreign exchange risk                                       Interest rate risk
                                                                     -10%                                 +10%                     -10%                +10%
                                      Carrying
                                      amount               Profit            Equity            Profit              Equity             Profit                Profit
                                         $’000             $’000             $’000            $’000              $’000              $’000                $’000
Financial assets
Cash and cash equivalents               24,225                  1                —                  (1)               —                  (95)                95
Trade and other receivables               2,667                —                 —                  —                 —                   —                      —
Financial liabilities
Trade and other payables                  (4,511)              (1)               —                  1                 —                   —                      —
Borrowings                                  (72)               —                 —                  —                 —                   —                      —
Total increase / (decrease)                                    —                 —                  —                 —                  (95)                95

The above sensitivity analysis assumes that changes in interest rates will have an immediate impact on all cash balances, notwithstanding that at balance
date a significant portion of cash is held as term deposits which have fixed interest rates and an average maturity of 149 days (2009: 163 days). The impact
of changes of interest rates on cash balances is based on the annual interest which would be received if the cash balances at balance date were maintained
for a full year and does not attempt to predict changes in cash balances over that period. The sensitivity analysis is based on pre-tax figures as the Group is
currently in a tax loss position which results in nil tax payable and nil tax expense.
The analysis is conducted in relation to a base AUD / USD exchange rate of $0.8523 (2009: $0.8114) and an interest rate of 5.29% pa (2009: 3.94%).
Credit risk
The Group has no significant concentrations of credit risk. Cash transactions and deposits are with high credit quality financial institutions. Further
information relating to the credit risk of trade and other receivables is set out in Note 7.
Funding and liquidity risk management
The Group maintains a system of controls which provide for continual monitoring of future cash flow requirements, allowing it to put in place appropriate
facilities to ensure that sufficient funds are available to fund the Group’s activities in the short to medium term.
The Group’s and the Parent Entity’s underlying objectives with respect to managing capital are to safeguard their ability to continue as a going concern
to enable the Group to operate to increase shareholder value. While the Group’s activities comprise mainly exploration and appraisal operations, funding
through equity, rather than debt, is considered to be the most appropriate capital structure.

28 Parent Entity financial information
(a) Summary financial information                                                                                                2010                   2009
                                                                                                                               $’000                   $’000
Assets
Current assets                                                                                                                 82,192                 29,496
Total assets                                                                                                                 107,635                  45,528

Liabilities
Current liabilities                                                                                                            5,900                   4,544
Total liabilities                                                                                                              6,028                   4,599

Shareholders’ equity
Contributed equity                                                                                                            107,316                 45,266
Share option reserve                                                                                                              571                    393
Performance rights reserve                                                                                                         77                        –
Accumulated losses                                                                                                             (6,357)                (4,730)
Total shareholders’ equity                                                                                                   101,607                  40,929

Loss for the year                                                                                                              (1,629)                 (3,270)

Total comprehensive income                                                                                                     (1,629)                 (3,270)




                                                                                                             WestSide Corporation Limited Annual Report 2010         Page 70
     Notes to the Financial Statements (cont’d)
     30 June 2010
     WestSide Corporation Limited



     (b) Parent Entity contigent liabilities
     The Parent Entity is a party to Deeds of Cross Charge as set out in Note 18.
     The Parent Entity has guaranteed the obligations of wholly-owned subsidiaries WestSide CSG A Pty Ltd and WestSide CSG B Pty Ltd in respect of their
     agreements to each acquire a 25.5% interest in the Dawson Seamgas gas fields.
     Cash of $720,640 (2009: nil) is held as security for bank guarantees in favour of The State of Queensland in respect of the Group’s obligations under various
     environmental licences.
     Cash of $175,211 (2009: $60,000) is held as collateral to secure a bank guarantee for the Company’s obligations under the terms of the lease of its business
     premises. The amount unused on the facility was $6,944 (2009: $6,944) at balance date.
     Cash of $70,000 (2009: $50,000) is held as collateral to secure a corporate credit card facility pursuant to a right of set-off. $13,000 (2009: $9,000) was
     owed under the corporate credit card facility at balance date.
     (c) Parent Entity Commitments
     The Parent Entity’s operating lease commitments and remuneration commitments are as disclosed for the Group in Notes 20(b) and 20(c) respectively.
     The Parent Entity has also committed to fund the capital commitments of its subsidiaries as set out in Note 20(a).




Page 71   WestSide Corporation Limited Annual Report 2010
Directors’ Declaration
30 June 2010
WestSide Corporation Limited



In the Directors’ opinion:
(a) the financial statements and notes set out on pages 38 to 71 are in accordance with the Corporations Act 2001, including:

     (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

     (ii) giving a true and fair view of the Company’s and Consolidated Entity’s financial position as at 30 June 2010 and of their performance for the
          financial year ended on that date; and

(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.




N Mitchell
Director
Brisbane, 29 September 2010




                                                                                                           WestSide Corporation Limited Annual Report 2010   Page 72
     Audit Report
     30 June 2010
     WestSide Corporation Limited




                                                                                                                                    PricewaterhouseCoopers
                                                                                                                                    ABN 52 780 433 757
                                                                                                                                    Riverside Centre
                                                                                                                                    123 Eagle Street
                                                                                                                                    GPO Box 150
                                                                                                                                    BRISBANE QLD 4001
                                                                                                                                    DX 77 Brisbane
                                                                                                                                    Australia
                                                                                                                                    www.pwc.com/au
                                                                                                                                    Telephone +61 7 3257 5000
                                                                                                                                    Facsimile +61 7 3257 5999




     Independent audit report to the members of WestSide Corporation Limited
     Report on the financial report

     We have audited the accompanying financial report of Westside Corporation Limited (the company), which comprises the balance sheet as at 30 June 2010, and
     the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant
     accounting policies, other explanatory notes and the directors’ declaration for Westside Corporation Limited and the Westside Corporation Limited Group (the
     consolidated entity). The consolidated entity comprises the company and the entities it controlled at the year’s end or from time to time during the financial year.

     Directors’ responsibility for the financial report

     The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards
     (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls
     relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and
     applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state, in
     accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial
     Reporting Standards .

     Auditor’s responsibility

     Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards.
     These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
     reasonable assurance whether the financial report is free from material misstatement.

     An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on
     the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those
     risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit
     procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An
     audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as
     evaluating the overall presentation of the financial report.

     Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

     Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

     We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.




Page 73   WestSide Corporation Limited Annual Report 2010
Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion on the financial report

In our opinion:

(a)   the financial report of Westside Corporation Limited is in accordance with the Corporations Act 2001, including:

      (i)    giving a true and fair view of the consolidated entity’s financial position as at 30 June 2010 and of its performance for the year ended on that date; and

      (ii)   complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001, and

(b)   the consolidated financial report and notes also comply with International Financial Reporting Standards as disclosed in Note 1.

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 26 to 35 of the directors’ report for the year ended 30 June 2010. The directors of the company are
responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor’s opinion

In our opinion, the Remuneration Report of Westside Corporation Limited for the year ended 30 June 2010, complies with section 300A of the Corporations Act 2001.

Matters relating to the electronic presentation of the audited financial report

This auditor’s report relates to the financial report and remuneration report of WestSide Corporation Limited (the company) for the year ended 30 June 2010
included on Westside Corporation Limited web site. The company’s directors are responsible for the integrity of the Westside Corporation Limited web site. We
have not been engaged to report on the integrity of this web site. The auditor’s report refers only to the financial report and remuneration report named above.
It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report or the remuneration report. If users of this
report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report
and remuneration report to confirm the information included in the audited financial report and remuneration report presented on this web site.




PricewaterhouseCoopers




Brett Delaney
Partner
Brisbane, 29 September 2010



Liability limited by a scheme approved under Professional Standards Legislation




                                                                                                                   WestSide Corporation Limited Annual Report 2010       Page 74
     Shareholder Information
     30 June 2010
     WestSide Corporation Limited



     The shareholder information set out below was applicable as at 29 September 2010.

     A Distribution of equity securities
     Analysis of numbers of equity security holders by size of holding:

                                                                                   Ordinary shares   Performance Rights            Incentive Options
     Number of securities held                                                       Shareholders          Rightholders                 Optionholders
     1 – 1,000                                                                                103                      —                           —
     1,001 – 5,000                                                                            416                      —                           —
     5,001 – 10,000                                                                           413                      —                           —
     10,001 – 100,000                                                                        1,089                     7                           —
     100,001 and over                                                                          177                     3                           8
                                                                                             2,198                    10                           8
     There were 119 holders of less than a marketable parcel of ordinary shares.

     B Equity security holders
     Twenty largest quoted equity security holders
     The names of the twenty largest holders of ordinary shares are listed below:

                                                                                                                      Ordinary Shares
                                                                                                                                        Percentage of
     Name                                                                                                  Number held                  issued shares
     UNIFORD PTY LTD                                                                                        49,802,000                           19.9
     ANZ NOMINEES LIMITED                                                                                    33,782,000                          13.5
     PT BUMI RESOURCES TBK                                                                                   22,289,885                           8.9
     CITICORP NOMINEES PTY LIMITED                                                                            21,287,258                          8.5
     MR ANGUS NELSON KAROLL                                                                                   9,243,845                           3.7
     HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED                                                               5,500,000                            2.2
     MITCHELL FAMILY INVESTMENTS (QLD) PTY LIMITED                                                             5,188,138                          2.1
     PRUDHOE INVESTMENTS PTY LTD                                                                              4,444,445                           1.8
     RESOURCE & LAND MANAGEMENT SERVICES PTY LIMITED                                                         2,980,208                            1.2
     UBS WEALTH MANAGEMENT AUSTRALIA NOMINEES PTY LIMITED                                                     2,014,279                          0.8
     JP MORGAN NOMINEES AUSTRALIA LIMITED                                                                    2,000,000                           0.8
     STOLIGOR INVESTMENTS PTY LTD                                                                             1,900,000                          0.8
     AWJ FAMILY PTY LIMITED                                                                                   1,860,000                           0.7
     BNG (SURAT) PTY LIMITED                                                                                  1,250,000                           0.5
     MR IGOR STOLYAR                                                                                          1,200,000                           0.5
     MR STEPHEN HARRY JONES                                                                                   1,196,000                           0.5
     MR IAN MORTON & MRS DEBORAH MORTON                                                                         1,137,774                         0.5
     STOLIGOR PTY LTD                                                                                         1,100,000                           0.4
     EIFFEL INVESTMENTS PTY LTD                                                                               1,070,200                           0.4
     ADRIENNE JANET HOPKINS                                                                                   1,000,000                           0.4
     D&K HEYER PTY LTD                                                                                        1,000,000                           0.4


     Total                                                                                                  171,246,032                         68.4




Page 75   WestSide Corporation Limited Annual Report 2010
Unquoted equity securities

                                                                                                                      Number on issue              Number of holders
Ordinary shares                                                                                                             3,500,000*                                1
Incentive Options issued under the WestSide Director and Employee Incentive Option Plan                                     2,308,000                                8
Employee Performance Rights issued under the WestSide Employee Performance Rights Plan                                       1,581,000                              10
* 100% of the unquoted ordinary shares are held by Mr Angus Nelson Karoll.


C Substantial holders
Substantial holders in the Company are set out below:

                                                                                                                               Ordinary Shares
                                                                                                        Number of shares in which                       Percentage of
Name                                                                                                       relevant interest held                       issued shares
Washington H. Soul Pattison and Company Limited                                                                       49,802,000                                  19.6
Australia and New Zealand Banking Group Limited                                                                       33,782,000                                  13.3
                                         (1)
Saad Investments Company Limited                                                                                      25,500,000                                  10.0
Citicorp Nominees Pty Limited (1)*                                                                                    25,500,000                                  10.0
PT Bumi Resources TBK                                                                                                 22,289,885                                   8.8
Angus Karoll                                                                                                           17,188,290                                  6.8
* Relevant interest is held in capacity as prime broker with power to control the disposal of shares.
(1) These relevant interests are all in respect of the same share parcel of 10%.



D Voting rights
The voting rights attaching to each class of equity securities are as set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.
Incentive Options and Performance Rights
No voting rights.

E Restricted securities
Class                                                                                                     Date escrow period ends                Number of securities
Ordinary shares                                                                                                 29 September 2011                          3,500,000

F Interests in tenements
Tenement                                                                                                                 Location                  WestSide Interest
PL94                                                                                                    Bowen Basin - Queensland                                  51%(1)
ATP 688P                                                                                                Bowen Basin - Queensland                                 50%
ATP 769P                                                                                                Bowen Basin - Queensland                                 50%
ATP 974P                                                                                                Bowen Basin - Queensland                                100%(2)
ATP 978P                                                                                                Bowen Basin - Queensland                                100%(2)
(1) Effective 1 July 2010
(2) Effective 29 September 2010


G ASX relief conditions
ASX has granted WestSide a waiver from listing rule 10.13.3 to allow 3,500,000 shares to be issued to Mr Angus Karoll in consideration for the acquisition
of all the issued share capital of Nazara Energy Pty Ltd by 31 December 2010, being later than one month after the shareholders’ meeting held on 30
November 2009. The 3,500,000 share were issued on 29 September 2010 and there are no remaining shares to be issued under this waiver.




                                                                                                                         WestSide Corporation Limited Annual Report 2010   Page 76
     Corporate Governance Statement
     30 June 2010
     WestSide Corporation Limited



     Corporate Governance Statement
     WestSide’s Board recognises the importance of good corporate governance and is committed to maintaining the highest standards of corporate
     governance. WestSide’s Directors are responsible to the shareholders for the performance of the Company and their overriding aim is to enhance the
     interests of shareholders and to ensure the Company is properly managed.
     The Company has established a framework of principles to provide guidance to Directors, executives and staff in the day to day management of WestSide’s
     operations. Summaries of these principles are set out on the Company’s website: www.westsidecorporation.com
     WestSide has adopted the ASX Corporate Governance Council’s “Corporate Governance Principles and Recommendations” to the extent that they are
     considered applicable to a company of WestSide’s size. These principles have been in operation for the full financial year ended 30 June 2010 unless
     otherwise indicated below. Areas where WestSide has elected not to comply with the ASX Corporate Governance Council’s “Corporate Governance Principles
     and Recommendations” are set out in the table below:

     ASX recommendation                              WestSide position                                       Reason for difference
     Majority of Board should be independent.        Majority of Board is non-executive, but only J Clarke   Refer to following discussion (Board structure).
                                                     and A Gall can be considered independent.
     The Chairman should be independent.             Chairman is not independent.                            Refer to discussion below (Board structure).


     The roles of the Chairman and CEO should        Chairman is also CEO.                                   Refer to discussion below (Board structure).
     not be exercised by the same person.            Roles separated from 30 August 2010.
     Nomination Committee should be                  The Board performs the duties in relation to the        The Board believes that WestSide is not of sufficient
     established.                                    nomination of new Directors.                            size to warrant formation of a permanent Nomination
                                                                                                             Committee.
     Audit Committee should consist of at least      There are only two members, with one independent        Refer to discussion below (Board composition).
     3 members, all of whom are non-executive,       member (A Gall), who is the Committee’s Chairman
     the majority being independent and an           and is not also the Chairman of the Board.
     independent Chairman who is not Chairman
                                                     Third (and independent) member added from
     of the Board.
                                                     23 July 2010.
     Audit Committee Charter should be made          A summary of the Charter of the Audit and               A summary of the Charter is considered to provide
     publically available.                           Compliance Committee is available on the                stakeholders with appropriate information.
                                                     Company’s website.
     Disclose the process for performance            Board performance has been monitored informally         Board performance has been monitored informally on
     evaluation of the Board and senior              on an ongoing basis by the Chairman. Detailed           an ongoing basis by the Chairman. Detailed procedures
     executives.                                     performance evaluation procedures are currently         are being formulated. Once approved by the Board, the
                                                     being developed. Executive performance is reviewed      process will be disclosed on the Company website.
                                                     periodically by the Board.
     Remuneration Committee should be                The Board performs the duties that would                The Board believes that WestSide is not of sufficient
     established.                                    otherwise be dealt with by a separate Remuneration      size or complexity to warrant formation of a separate
                                                     Committee.                                              Remuneration Committee.


     Management and oversight
     WestSide’s Board Charter(1) sets out the responsibilities and functions of the Board, in particular their responsibility for the direction, strategies and
     financial objectives of the Company and monitoring the implementation of those policies, strategies and functions. The Board delegates authority to the
     Chief Executive Officer and management for day to day operations in accordance with the delegations set by the Board.
     WestSide has a Code of Conduct(1) in place for Directors, executives and employees which sets out practices necessary to maintain confidence in the
     Company’s integrity, the practices necessary to take into account their legal obligations and expectations of stakeholders and the responsibility and
     accountability of individuals for reporting and investigating reports of unethical practices. Trading in the Company’s securities by Directors, executives,
     employees and consultants are governed by a Securities Trading Policy(1).
     The Company has a comprehensive Continuous Disclosure Policy(1) which puts in place procedures and policies to ensure compliance with ASX Listing Rule
     Requirements such that all investors have equal and timely access to material, factual information concerning the Company.
     The Company has a policy of conducting annual performance appraisals for each Director and senior executive. As at 30 June 2010, no formal appraisal had
     been conducted for Directors or senior executives, although Board and executive performance is monitored informally on an ongoing basis. It is anticipated
     that formal procedures will be established and appraisals will be performed in the 2010/2011 financial year.
     Details of the Company’s remuneration policies and Directors remuneration are set out in the Remuneration Report section of the Directors’ Report.

     (1) A summary of these documents is available on the Company’s website: www.westsidecorporation.com




Page 77   WestSide Corporation Limited Annual Report 2010
There is a procedure agreed by the Board for Directors to take independent        • The relevant services or goods acquired by WestSide amount to
professional advice at the expense of the Company on matters involving              5% or more of total purchases by WestSide;
the discharge of the Director’s responsibilities to the Company.                  • The relevant services or goods acquired by WestSide amount to
Board structure                                                                     10% or more of the total income of the Director or associated
                                                                                    company / advisor / consultant; or
Details of the Directors’ skills, experience, expertise and membership of
Board Committees are set out on pages 19 and 20 of this Annual Report.            • The relevant sales of WestSide’s products amount to 10% or more
The number of meetings held, and the attendance of each Director are set            of total sales by WestSide or of total purchases by the customer.
out in the Directors’ Report.                                                     The Board regularly reviews whether previous relationships of any
                                                                                  Director do, in fact, or are perceived to, compromise the Director’s
Following the departure of WestSide’s Chairman/CEO in September 2008,
                                                                                  independence.
the Board agreed that it would be appropriate for WestSide’s founding
shareholder and Non-executive Director A Karoll to serve as Chairman          (d) Material contractual relationships: A Director cannot be considered to
and CEO until such time that a suitable replacement could be found. With          be independent if he has a material contractual relationship with the
the Chairman acting in an executive position, the Board was prepared              Company.
to deviate from strict adherence to a number of the Company’s normal          (e) Length of service: A Director cannot be considered to be independent
Corporate Governance policies and principles until a suitable CEO was             where he has served on the Board for a period which could, or could
appointed on 30 August 2010.                                                      reasonably be perceived to, materially interfere with the Director’s
                                                                                  ability to act in the best interests of the Company.
Independence of Directors
                                                                              (f) Other relationships: To be considered independent, a Director must be
All Directors are required to bring independent judgement to bear in
                                                                                  free from any interest and any business or other relationship which
decision-making.
                                                                                  could, or reasonably be perceived to, materially interfere with the
A majority of the Board are Non-executive Directors, although at no time          Director’s ability to act in the best interests of the Company.
during the year to 30 June 2010 was there a majority of independent
Directors as recommended in the ASX Corporate Governance Council’s            Safeguarding of financial reporting integrity
“Corporate Governance Principles and Recommendations”. Only one
                                                                              WestSide’s Audit and Compliance Committee consisted of two Non-
Director (A Gall) could be considered independent under the ASX
                                                                              executive Directors, A Gall and T Karoll throughout the financial year. A
guidelines until the appointment of Mr J Clarke on 28 May 2010 .
                                                                              third member, Mr J Clarke joined the Committee on 23 July 2010.
The Board believes that the current balance of executive and non-
                                                                              The Audit and Compliance Committee operates within the framework of
executive Directors and between independent and non-independent
                                                                              a formal Charter. A summary is available on the Company’s website:
Directors provides WestSide with the benefit of a wide range of
                                                                              www.westsidecorporation.com.
experience, qualifications and professional skills.
                                                                              Managing risk
The Board believes that in the early years of the Company’s development
the technical and financial support of major stakeholders is essential in      WestSide has a comprehensive risk management policy which sets
maximising the value of the Company’s exploration assets and in serving       out procedures for regular review of registered risks and a disciplined
the interests of all shareholders.                                            assessment of new activities. The policy sets out the roles and
                                                                              responsibilities of the Board, management and all personnel. A summary
Each member’s independence is assessed at the time of appointment             is available on the Company’s website at www.westsidecorporation.com
and on a continuous basis throughout the term of their appointment.
In assessing the independence of Directors, the following factors are         Management reports to the Board as to the effectiveness of the
considered:                                                                   Company’s management of its material business risks. The Board receives
                                                                              assurances from the CEO and CFO annually that the declaration provided
(a) Director’s shareholding: A Director cannot be considered to be            in accordance with section 295A of the Corporations Act is founded on
    independent if he, his associates or a company of which he is an          a sound system of risk management and internal control and that the
    officer of, controls greater than 5% of the voting rights in WestSide.    system is operating effectively in all material respects in relation to
(b) Previous executive capacity: A Director cannot be considered to be        financial reporting risks.
    independent if he has been employed by the Company in an executive
    capacity in the previous three years.
(c) Material supplier or customer: A Director cannot be considered to be
    independent if he is:
    • principal of a material professional advisor;
    • a material consultant to the Company;
    • an employee of a material advisor or consultant materially
      associated with the service provided;
    • a material supplier of the Company, or an officer or associate of the
      supplier; or
    • a material customer of the Company, or an officer or associate of
      the customer.
    The relationship is considered to be material where, during the
    previous three years, or forecast for the forthcoming 12 months:




                                                                                                       WestSide Corporation Limited Annual Report 2010   Page 78
     Glossary


     Term                                       Meaning
     1P                                         Proved gas reserves

     2P                                         Proved and Probable gas reserves

     3P                                         Proved, Probable and Possible gas reserves

     3C                                         Contingent resource (High) estimate

     ASX                                        Australian Securities Exchange.

     Authority to Prospect (or ATP)             An authority to explore for petroleum granted by the Queensland Minister for Mines and Energy under Part 4 of the
                                                Petroleum Act.

     BCF (or Bcf)                               Billion cubic feet (109 cubic feet). While BCF is a unit volume and PJ is a unit of energy the Calorific Value of CSG is
                                                such, on the average, that one BCF of gas provides one PJ of energy.

     Board or Board of Directors                The board of Directors of WestSide Corporation Ltd.

     BWPD (or bwpd)                             Barrels of water today

     Coal Measure                               Refers to the stratification of layers of coal interspersed with strata of other sedimentary materials.

     Consolidated Entity                        The Company and its subsidiaries as set out in note 18 to the financial statements.

     Company                                    WestSide Corporation Limited (WestSide) and /or its related bodies corporate as the context requires (ABN 74 117 145 516)

     Core or coring                             The process of drilling a hole and extracting material from a target depth for examination and testing – ‘taking a core’.

     CSG (or CBM)                               Coal seam gas, also called coal bed methane (CBM), refers to the gas (principally methane) which is found in coal seams.

     Director(s)                                A director of the Board of the Company.

     Fracture stimulation                       Artificially creating fractures in the coal surrounding a well bore by injecting high pressure fluids into the well bore

     Gas in Place (or GIP)                      The quantity of gas which is estimated to be contained in a known coal formation or discrete area.
                                     9
     Gigajoule (or Gj) Gigajoule (10 Joules). There are 1,000 Gj in a Terajoule (Tj) and 1,000 Tj in a Petajoule (PJ).

     IPO                                        Initial Public Offering made subject to a Prospectus dated 17 November 2006.

     KPC                                        Kaltim Prima Coal – a company incorporated in Indonesia which owns and operates coal mines in Kalimantan, Indonesia.

     Listing                                    The official listing of the Company on ASX.

     m                                          metres

     MEPAU                                      Mitsui E&P Australia Pty Ltd

     mscfd                                      Thousand standard cubic feet per day.

     Permeability                               Permeability describes the ability of a gas like methane to pass through or be released from a fractured solid like coal.

     Pilot Well                                 A well for gas and water extraction, generally in close proximity to another for the assessment of gas production potential.

     PJ                                         Petajoule (1015 joules).

     P&A                                        Plugged and abandoned

     Reserve                                    A resource which has been quantified by a verifiable process and has demonstrated commercial value.

     Resource                                   An unquantified body of material of potential value.

     Seismic                                    An assessment process whereby the reflected vibrations from a series of shocks or vibrations on the surface are
                                                used to infer underground structures.

     Share                                      A fully paid ordinary share in the capital of WestSide Corporation Limited.

     Shareholder                                A holder of Shares.

     Sunshine Gas                               Sunshine Gas Limited ACN 098 563 663, a company listed on ASX.

     Tj                                         Terajoule (1012)

     TCF (or Tcf)                               Trillion cubic feet (1012 cubic feet).

     Tenement                                   The area and location over which an ATP is granted.




Page 79    WestSide Corporation Limited Annual Report 2010
Corporate Directory


WestSide Corporation Limited                                                        Company Secretary
ABN 74 117 145 516                                                                  Damian Galvin
ACN 117 145 516
                                                                                    Auditors
Business Office                                                                     PricewaterhouseCoopers
Level 8, 300 Queen St                                                               Riverside Centre
Brisbane QLD 4000                                                                   123 Eagle Street
                                                                                    Brisbane QLD 4000
Phone: 07 3020 0900
Fax: 07 3020 0999
                                                                                    Solicitors
Postal address                                                                      Allens Arthur Robinson
GPO Box 1121                                                                        Level 31
Brisbane QLD 4000                                                                   Riverside Centre
Web: www.westsidecorporation.com                                                    123 Eagle Street
Email: info@westsidecorporation.com                                                 Brisbane QLD 4000


Registered Office                                                                   Share Registry
Level 8, 300 Queen St                                                               Registries Limited
Brisbane QLD 4000                                                                   Level 2, 28 Margaret Street
                                                                                    Sydney NSW 2000
                                                                                    Phone: 02 9290 9600
Directors
                                                                                    Fax: 02 9729 0664
Angus Karoll
Chairman
                                                                                    Communications Advisers
John Clarke                                                                         Three Plus
Non-executive Director                                                              15 Cordelia Street
Tony Gall                                                                           South Brisbane QLD 4101
Non-executive Director                                                              Phone: 07 3503 5700
                                                                                    Fax: 07 3503
Trent Karoll
Non-executive Director

Nathan Mitchell
Non-executive Director

Robert Neale
Non-executive Director

Chief Executive Officer
Julie Beeby




The Meridian SeamGas reserves estimates appearing in this report are as at 31 December 2008 and were compiled by Mr Bruce Gunn, an employee of
Resource Investment Strategy Consultants P/L (RISC), from information provided by Anglo to WestSide. RISC is independent with respect to Westside.
RISC has no pecuniary interest, other than to the extent of the professional fees receivable for the preparation of its report, or other interest in the assets
evaluated, that could reasonably be regarded as affecting its ability to give an unbiased view of these assets. Mr Gunn, who is a practising petroleum
engineer with over 25 years’ experience, has consented to the inclusion of the reserve information in the form and context in which it appears.
The certified reserves figures for ATP 769P and ATP 688P used in this report are based on information compiled by John P. Seidle, Ph.D., P.E.,Vice President
of MHA Petroleum Consultants LLC. Mr Seidle is not an employee of WestSide Corporation Ltd and consents to the inclusion in this report of these reserves
figures in the form and context in which they appear.
Gas flows from the Tilbrook #8 well are from the “P” coal seam of the Moranbah Coal Measures at an average depth of 340m and flowing through a ball
valve which is open to approximately 20% (estimated equivalent to a 0.2 square inch choke).
Production and gas sales figures referred to in this report are as at 25 August 2010.



                                                                                                             WestSide Corporation Limited Annual Report 2010      Page 80
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Page 81   WestSide Corporation Limited Annual Report 2010
“WestSide has launched a
 major drilling campaign to
 increase production and
 expand certified reserves
 during FY2011.”
www.westsidecorporation.com

				
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