Rick Wilkinson
OGJ Correspondent
MELBOURNE, Aug. 24 -- Nexus Energy Ltd., Melbourne, has completed its farmout deal with Korea National Oil Corp. (KNOC) and Seoul City Gas Co. Ltd. for the companies' entry into Nexus Energy's Gippsland basin permits Vic/P56 and Vic/P49 off Victoria.
The two South Korean companies are earning a total 50% interest in both permits in return for the funding of the bulk of exploration drilling costs to a total of $15 million (Aus.).
The program will begin with the drilling of a well in November on the Culverin-Scimitar prospect in Vic/P56.
Culverin is a large structure at the top of the Tertiary Latrobe formation, while Scimitar lies directly underneath in deeper Intra Latrobe sediments, analogous to Anzon Australia Ltd.'s Basker and Manta oil and gas discoveries 12 km to the north.
There is potential for the Culverin-Scimitar prospects to spill over the border into Vic/P49. Nexus will serve as the operator.
Separately, Nexus has a 37.5% interest in a wildcat to be drilled in Vic/P54, where Apache Energy Australia Ltd., Perth, serves as operator with 62.5%. The target is the Fur Seal prospect, also defined on 3D seismic, which lies midway between the existing ExxonMobil Corp.-BHP Billiton Moonfish and Sunfish oil fields.
Fur Sea is interpreted as a stratigraphic trap formed by the juxtaposition of the Intra Latrobe sands against an Eocene-age channel sand in the western part of the permit.
A third well, Galloway-1, is to be drilled in February 2006 i inshore shallow-water permit Vic/P39(v). Defined on 2D seismic, this area is analogous to the ExxonMobil-BHP Billiton Seahorse and Wirrah fields that lie 15-25 km further south.
Nexus plans to retain a 50% interest after the farmout and will retain the operatorship.
Nexus also is planning to operate an appraisal well on its Longtom field in Vic/P54 that will evaluate sands above the main reservoir in what is being called the Longtom Upper target. This is scheduled for drilling in March 2006.
