For those who havent read it here is the article referred to by...

For those who havent read it here is the article referred to by Backsheesh1.

The bottom line is we can't really know the actual value put on the 2P reserves (no disrespect to Mr Karoll) because of the imponderables, including the unspecified damages and the cost of stopping the rot with aggressive rectification. Or maybe Im missing the point?

"CSG hopeful playing with the grown-ups (WCL)
CRITERION: Tim Boreham From:
The Australian March 05, 2010
Westside (WCL) 41c. THE Queensland coal-seam gas hopeful has struck a handy deal that will transform it from just another explorer to the second-biggest dedicated CSG producer, behind Arrow Energy.
Westside will pay $28 million to buy a 51 per cent stake in the Dawson CSG field in the Bowen Basin from Anglo American (which wants to focus on coal).
It's a case of playing with the grown-ups for Westside, given its ongoing 49 per cent partner is Mitsui E&P Australia (which has a non-operating interest in nine LNG projects). The venture also has existing contracts to supply AGL. But investors are keeping a lid on their zeal and there are valid reasons (such as the need to raise $30m to fund the shebang).
Westside chief executive Angus Karoll enthuses about the wider potential to supply the LNG export sector. The field is adjacent to Westside's existing Paranui project (half-owned by BG Group's QGC), which enhances the likelihood of Paranui being developed. Dawson boasts 3P reserves of 334 petajoules (PJ), 2P reserves of 186PJ and 1P (proven) reserves of 60PJ. Thus the purchase enhances Westside's stated ambition of holding 250PJs of 2P reserves and 1000PJs of the less-certain 3P stuff.
Karoll says Westside is paying 28c per gigajoule of 2P reserves, which compares highly favourably with the average $1.55 GJ shelled out by other acquirers. But one has to be careful with such comparisons because the valuations often don't account for uncertified reserves.
There's also a wee problem in that Dawson has been producing at 12 terajoules, well below the contracted rate of 25TJ. As a result, unspecified damages have been payable to AGL. Karoll attributes the shortfall to a lack of well development in the past 18 months, a situation the JV plans to "aggressively" rectify. Should the shortfall continue, we gather ramp-up gas from other nearby projects could be available below the contracted rate.
Intersuisse energy expert Nick Wirubov says the deal is "fantastic" in that Westside gets cheap plant, a gas sales agreement and the Paranui opportunity. "I'm not so enthusiastic about the LNG side -- if there's going to be any benefit, it's extremely long-term."
Karoll values the replacement cost of the infrastructure -- two pipelines and 12 compressors -- at $130m. To some extent, the value of the deal depends on how cheaply the funding can be procured. Speculative buy."