Westralian Gas & Power Limited reported consolidated earnings results for the half year ended December 31, 2009. For the period, the company reported loss from continuing operations before income tax of AUD 1.32 million, net profit of AUD 1.32 million or 0.76 cents against loss from continuing operations before income tax of AUD 0.35 million, net profit of AUD 0.35 million or 0.46 cents reported a year ago. Net cash used in operating activities was AUD 0.69 million against AUD 0.46 million a year ago. Exploration expenditure was AUD 0.15 million against AUD 0.10 million a year ago.

Westralian Gas & Power Limited has obtained the final approval necessary to commence its new coal seam gas drilling program at the Kaloorup Road Prospect near Busselton. Bunbury Drilling Company will immediately begin constructing an access road and a drilling pad. The start of drilling marks the completion of a long-term and detailed exploration program which began in the area in 2004 with an application to the Department of Mines and Petroleum for an exploration permit. Initial seismic was then undertaken, followed by its assessment. A more intensive program over the Kaloorup Road portion of the area in Drilling Reservation 10 delineated a structural high which is located on the western side of Kaloorup Road.

Westralian Gas & Power Limited announced that on September 18 concerning the Oswal joint venture, Oswal Resources Pty Ltd. and Westralian have agreed on terms of the termination of their joint venture. They have agreed to, so far as they can, put themselves in a position reasonably similar to the position they were in before entering the transaction on October 30 2008 and to that end: a) Westralian shall refund to Oswal $200,000 which represents a refund of the purchase monies paid by Oswal pursuant to the initial acquisition agreement and a further sum of $300,000 (payable over 10 months) which represents a reimbursement of a portion of monies spent by Oswal on work it carried out on the resource titles the subject of the transaction entered into on October 30 2008 which included the drilling of wells, acquiring seismic and other data and reviewing existing data; b) Westralian shall retain all the resource titles and all the resource information the subject of that transaction; and c) Westralian shall have the ownership and the benefit of the information generated by Oswal and Oswest Energy Pty Ltd. on the project since October 30 2008.