WestSide Corporation is going to pay $26.8 million for acquiring 51 per cent stake in a joint venture, which would be built for the Dawson CSG gas fields.

These fields are situated in Bowen Basin and WestSide has joined hands with Mitsui E&P Australia Pty. The name of the venture is Dawson Seamgas coal seam gas and was formed to acquire gas producing assets.

Till the last study, the above mentioned assets have gross 60 PJ (1P), 186 PJ (2P) and 334 PJ (3P). They are the certified reserves and have been long allowed top produce gas. Besides this, they also have a pipeline and also include a compressed infrastructure which has large unused capacity.

As per the new agreement, WestSide will become the operator. It claims that with this, the company can start producing gas by mid-2010.

This would then help the company to become Australia's largest and dedicated coal seam gas (CSG) producer and also allow it to become an experienced LNG producer.

Combined together, WestSide would be able to have substantial influence in the region, it claims.

However, the agreement is subject to approval from the shareholders and financing options.