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Tuesday, 02 December, 2008, 00:40 GMT | more >>

Nexus makes hay from onshore delay



By Upstream staff 

Melbourne-based Nexus Energy said a delay in approving onshore facilities for its 100%-owned Longtom gas project in the Bass Strait off Australia’s Victoria state could push first gas from the project back to early next year, but might allow extra wells to be tied in to the project.

The company said in its half-year review for the six months to December that the hold-up could allow more gas reservers from Block VIC/L29 to be brought on stream when the project does get going.

Nexus, which is in the process of merging with fellow Australian player Anzon Energy (AEL) and its subsidiary Anzon Australia (AZA), said it was also reviewing the Longtom project’s scope and schedule to potentially accept flows from AEL and AZA’s nearby Basker Manta Gummy project into its subsea infrastructure.

Nexus said in the half-year report it saw consolidated profit rise 8.7% year-on-year to A$40.1 million ($37.3 million) for the six months to December.

The group said the gain was driven by its sale of a 15% stake in its Crux project off Australia’s north-west coast to Japan’s Osaka Gas for A$75 million, resulting in a net gain of A$57 million for the company.

Revenue rose to A$58.5 million from A$51.9 million for the six months to December 2006.

Diluted earnings per share were however lower at A$7.55 from A$9.31.

Nexus said it raised A$93 million through share placements and A$11 million through exercising options in the period.

Gas volumes on Nexus’s Crux project in the Browse basin off Western Australia were independently certified at an estimated 6.3 million barrels of oil equivalent in October last year. Nexus said the results did not include gas struck by its Crux-3 appraisal in a 50%-owned area of Block AC/P41 adjacent to its 100%-owned AC/P23 permit, or to other prospects on AC/P23.

Another two wells are planned in the greater Crux area in the next four months, the company said.

In July last year, Shell farmed in to a 34% stake of Nexus’s Echuca shoals prospect on permit WA-377-P for A$60 million in cash and drilling contributions.

Nexus said the first of two appraisal wells agreed in the farm-in had been completed, but that a further well was needed to test potential for up to 4 trillion cubic feet of natural gas on the prospect.


Monday, 17 March, 2008, 02:26 GMT  | last updated: Monday, 17 March, 2008, 03:13 GMT

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