Nexus Hits Gas Offshore Australia

Nexus Energy Limited's Crux-4 appraisal well in exploration permit AC/P23, in the Browse Basin, has intersected approximately 110 metres of high quality net gas bearing sand over a 190 metre gross interval confirming the field extends into the previously undrilled South East Horst block.

This discovery could have significant positive implications for exploration prospectivity in the eastern part of exploration permit AC/P23.

The Crux-4 appraisal well had reached a depth of 3,760 metres true vertical depth sub sea ("TVDSS"). The final suite of wireline logs are currently being acquired.

The Crux-4 well has confirmed that the Crux field extends into the previously undrilled South East Horst block, intersecting the top gas sand at the highest point seen in the field approximately 20 metres above the highest gas sand seen in the Crux-3 well.

The uppermost sand intersected in the well lies over 310 metres above the field-wide gas water contact. Pressure measurements obtained from the well confirm that the gas intersected at this location is in pressure communication with the gas column encountered in the core area of the field and is likely to have the same gas water contact.

The forward plan will be to set the 9-inch casing before drilling ahead to the planned total depth of 3,958 metres TVDSS. The well will be suspended as a future production well.

The Crux-4 well is the second of three wells to be drilled in the greater Crux area. The third well, Libra-1, will be drilled in the adjoining AC/P41 exploration permit in April 2008. Nexus holds a 50% interest in AC/P41 in conjunction with its partner, Shell Development (Australia) Pty Ltd. Nexus managing director, Ian Tchacos said, "We have encountered a very significant gas column in a previously undrilled portion of the field. This well has encountered the largest gross gas column seen in the Crux field to date. These results confirm the extension of the field into the South East Horst block and have positive implications for exploration prospectivity in the eastern part of AC/P23."

"The Crux-4 gas reservoir intersection follows on from the excellent results obtained at Crux-3 and is expected to further enhance the commerciality of the Crux liquids project scheduled for project sanction by August 2008. Crux-4 is the third well drilled to date that will be kept as a future development well, thereby contributing to the value of the project."

Mr Tchacos said, "The Crux-4 well was located to test the South East Horst extension of the Crux field. The South East Horst lies outside of the Crux 'core' area and the reservoir distribution information which is expected to be obtained from this well is likely to have significant implications for further field appraisal and near field exploration such as the nearby Auriga prospect in the AC/P23 exploration permit."