Nexus Spuds Sidetrack from Crux-2 ST1

Crux Field, Timor Sea - Australia
(Click to Enlarge)
Nexus Energy Limited said that, as of 9:30 a.m. local time Wednesday, the Crux-2 ST1 well in permit AC/P23 in the Browse Basin offshore northwestern Australia had commenced sidetrack operations and was drilling ahead at a depth of 2,352 m RT. This sidetrack well is expected to take approximately 14 days to reach the zone of interest at a deviation angle of approximately 45 degrees.

Crux-2 Results and Crux-2 ST1 Objectives

The Crux-2 appraisal well targeted a potential northeastern extension of the Crux field where considerable resource upside was identified, but where the seismic character differed to that observed at Crux-1. The Crux-2 well was designed to evaluate this potential in order to determine the lateral extent of the Crux field.

As previously announced, Crux-2 confirmed a gross gas column of 70 m with a net 26 m of good quality sandstones. However from an engineering perspective, the well did not intersect the required minimum thickness of reservoir sands necessary to support the proposed liquids project gas injection rate. By sidetracking the Crux-2 well to a more optimal location the company plans to utilize the cased large-bore well as the first of up to six wells required for the prospective recycle project.

While the Crux-2 sand intersection was insufficient for gas injection, it does importantly prove a significant sand body that may be expected to contribute to the field's overall gas and condensate resources.

The Crux-2 well has also provided an important control point enabling Nexus to refine its predictive model for sand deposition within the Crux reservoirs. As highlighted above, there were distinct differences between the seismic character seen at Crux-1 and Crux-2.

The proposed Crux-2 ST1 sidetrack location will target an area towards the Crux-1 well beyond the point where a change in seismic character is observed. It is expected from the seismic that the reservoir characteristics at the sidetrack location will be similar to those for reservoir sands encountered at the Crux-1 well.

If the Crux-2 ST1 well is successful in encountering a significant gas column similar to Crux-1, it will be cased and suspended as a future development well.

It should be noted that such a well at the Crux-2 ST1 location could be used either as a gas injector for a liquids recycle project or a subsequent producer for an LNG project.

Nexus Energy WA Pty Ltd is the sole participant in the well.

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