Nexus drilling Crux-3 appraisal in Browse basin

Nexus Energy Ltd., Melbourne, has begun drilling the Crux-3 appraisal of its gas-condensate field in the Browse basin off Western Australia.

Dec 11th, 2007

(Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 11 -- Nexus Energy Ltd., Melbourne, has begun drilling the Crux-3 appraisal of its gas-condensate field in the Browse basin off Western Australia.

This well is the first of three in a back-to-back program, with the Sedco 703 rig drilling on the AC/P23 permit. Nexus has an 85% share and is drilling the wells ahead of a likely final investment decision, expected in mid-2008, for its proposed Crux gas recycling-liquids project.

Two of the three wells will appraise Crux field, while a third will be located in adjoining AC/P41 (where Nexus holds 50%) to test a new prospect called Libra.

Crux-3 is in the core of Crux field to evaluate thickness of Nome Formation, the main reservoir. It also will probe the potential of the younger overlying Plover Formation sand that was intersected in Crux-2 and Crux-2 sidetracks drilled earlier this year. Nexus says there may be extensions of this reservoir to the southwest.

The intention is to production-test Crux-3 so final design can be applied to production facilities and for the marketing of condensate.

Crux-4 is to be located in the southeastern part of the field to evaluate reservoir thickness in that direction.

Both Crux-3 and Crux-4 will be suspended as future producers if warranted. The data will be used to update the Crux reserves position. At present the field is estimated to hold reserves with a median value of 66 million bbl.

If successful, the Libra-1 wildcat could lead to upgrading of the adjacent Auriga prospect on Permit AC/P23.

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