Nexus Energy Says Longtom 3 Currently Flowing at 23 mmscf/d

Nexus Energy

Nexus Energy says that the first production test on Longtom 3 over the upper sands ("400 sands") was flowing at 23 mmscf/d through at 1" choke with a flowing well head pressure of 1200 psi. The well was opened on September 13th at an initial flow rate of 30 mmsdf/d before being choked back to achieve a stabilized flow rate.

The well is being tested over the 400 sand interval of 2135.0 – 2170.0 mMDRT and 2180.0 – 2195.0 mMDRT. This is the sand interval in which flow was not achieved in the Longtom 2 well.

The results from this test confirm the flow potential of the 400 sand reservoir section in the Longtom field, addressing a major concern leading up to the drilling the Longtom 3 well. A flow was not achieved in the second test on Longtom 2, a test which Nexus has interpreted to have failed due to down hole mechanical problems.

The well will continue to be flowed until later today to monitor stabilized flow rates and pressures prior to shutting the well for approximately 12 hours to monitor the pressure response from the reservoir.

These results are preliminary, additional information in relation to this test will be provided at the conclusion of testing.

After completion of this test the 400 sand interval will be isolated and the well prepared for a combined test of the 100, 200 and 300 sands (lower sands) completed predominately in the horizontal section of the well.

Following testing of lower ands the well will be suspended as a future producer. The results of the second test are expected to be available over the next week.

Longtom 3 is located in VIC/P54 offshore Victoria, Australia in the Gippsland Basin.

Nexus Energy is the operator and holds a 100% interest. The Longtom 3 well is a sole risk appraisal project located in the VIC/P54 exploration permit. The sole risk appraisal project is being operated and funded by Nexus Energy. Apache Northwest Pty Ltd has back in rights pursuant to a joint venture agreement which enables Apache to participate in any potential Longtom development upon the payment of a back in penalty.