WestSide said it spudded the Paranui-5R well yesterday and expects to begin production testing on Paranui-6R this week.

The four-well Paranui pilot project was delayed due to ongoing drilling rig difficulties and monsoonal weather in the first quarter of 2008.

According to WestSide, Paranui-5R is the third well drilled by the company in the Paranui pilot program and initiates an intensive period of exploration and testing.

Executive chairman Michael Cavell said the final well in the program Paranui-4 will be drilled following Paranui-5.

"Two of the appraisal wells will be subjected to a fracture stimulation process, with

the Paranui-6R well already having undergone a four-stage Hydraulic Fracture

Stimulation of 10 coal seams in late April," he said.

Cavell also said all Paranui-4, 5 will undergo production tests when completed.

The fourth well, Paranui-7 observer well, has been suspended with monitoring equipment.

The Paranui wells are designed to test CSM production from the Baralaba coal measures.

WestSide and Sunshine are investigating the possibility of drilling an additional well, after the detection of promising, but unmeasured initial gas flows from the Paranui-6R well during drilling and after the recent fracture stimulation.

WestSide is operator and holds a 50% stake in Paranui, while Sunshine has the remaining 50%.