"Though it is unlikely that this accumulation will contain economic hydrocarbon volumes the results are encouraging in the context of the prospectivity of the Vic/P56 permit and the adjoining Vic/P49 permit," Nexus Managing Director Ian Tchacos said.
The well has demonstrated that oil is migrating through good quality sands in the area and that trapping mechanisms are working which augurs well for future exploration work on the permits.
"Despite the overall results we are pleased with the drilling program at the Culverin-1 well, the first we at Nexus have operated. The well operations have been conducted safely and efficiently. Importantly for all participants we anticipate that the completed exploration program will come in on or below the budget," Ian Tchacos added.
While the Culverin well did not provide Nexus with a commercial oil discovery on this occasion, the financial exposure to shareholders has been minimal as a result of the company's ongoing strategy of funding drilling operations via farmout.
The Culverin-1 well is located in Vic/P56 in the offshore Gippsland Basin, Victoria.
Joint Venture interests in Vic/P56 and the adjacent Vic/P49 permit areas are Nexus Energy Limited as operator with 40%; Korea National Oil Corporation with 30%; Seoul City Gas Company Ltd. with 20%; and Anzon Australia Limited with 10%.
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