Rick Wilkinson
OGJ correspondent
MELBOURNE, Mar. 31 -- Nexus Energy Ltd., Melbourne, said it believes Longtom gas field, on Permit Vic/P54 in the Gippsland basin off Victoria, contains commercial gas reserves.
The company's mapping and engineering studies, since confirming the reservoir with the Longtom-2 appraisal late last year, suggest proved-plus-probable gas reserves could exceed 300 bcf. Adding possible reserves pushes the potential to 500 bcf, Nexus said.
The figures are predicated on a successful Longtom-3 appraisal well to be drilled in September. The company aims for an early field development, with Longtom-3 to be suspended as a future commercial gas producer that quickly could be brought on stream.
Core analysis from Longtom-2 indicates that the upper sands in the prospect could produce gas at rates above the 19 MMcfd obtained from lower sands during tests in November 2004, Nexus said. Reservoir simulation studies point to a commercial field life of at least 10 years without stimulation.
Apache current operator
Apache Energy Pty. Ltd., Perth, has operated the discovery since farming into the permit in 2003 with a 62.5% interest. Nexus holds 37.5%.
Under a joint-venture agreement, Apache has until mid-April to decide whether to participate in the appraisal program. If Apache withdraws, Nexus will proceed on a sole risk basis to obtain 100% of any Longtom production.
Nexus has several development options in mind, including a stand-alone facility such as the small Santos Ltd.-operated Patricia-Baleen gas field 20 km to the northeast on an adjoining permit.
Gas from Longtom could be brought on stream by late 2006.
