The Brisbane-based company yesterday said it aimed to raise the funds to complement a $20.4 million investment by foreign investors Saad Investments and PT Bumi Resources. The investors had each invested $10.2 million.
WestSide last month announced it is farming-in to four Sunshine Gas CSM permits in Queensland’s Bowen Basin with plans to build a downstream ammonia plant.
Under the deal, Westside will earn a half-stake in ATP 688P (Tilbrook), ATP 693P (Cullin), ATP 769P (Paranui) and ATP 811P (Foxleigh).
WestSide also has the right to purchase the initial 250 billion cubic feet (Bcf) of gas produced from the permit areas to satisfy its anticipated energy requirements for fertiliser production.
Chief executive Steve Cullum said the market had already responded “enthusiastically” to the proposal.
“Recent market action confirms this is a vibrant, dynamic sector of the Queensland economy and there is a strong perception that coal seam methane has now arrived as an entirely legitimate source of energy,” Cullum said.
He said WestSide aims to prove up proven and probable reserves of at least 250Bcf of gas, with further targeted investments to expand these reserves.
It also hopes to develop commercial production, market gas product to industrial customers in Queensland and pursue opportunities for downstream ammonia production.
Cullum said the company deliberately “steered” towards tenements that have already been explored and appraised in the interest of accelerating progress towards commercialisation.
WestSide plans to build a 1000 tonne per day ammonia plant in the Gladstone vicinity to use existing port infrastructure. The company has said it believes the ammonia market will continue to strengthen in the region as demand for ammonia nitrate increases along with the demand for ammonia-based fertilisers.
WestSide is a fertiliser company focused on developing upstream gas reserves to support its downstream ammonia operations within Australasia. It has already participated in major ammonia and urea projects in South-East Asia and is now looking to replicate its operations in Queensland.
The IPO opens on November 27 and closes on December 18 unless fully subscribed earlier.