abce certificate
asia & oceania
Sunday, 07 September, 2008, 03:20 GMT | more prices >>

Nexus Energy hits gas at Oz well



By Upstream staff 

Photo by Woodside


Nexus Energy said today that it had struck 110 metres of high-quality gas-bearing sand in its Crux-4 well on Australia's offshore Browse basin, sending its shares up as much as 14%.

Nexus said in a statement that the appraisal wel off north-western Australia, confirmed that the Crux gas reservoir extends into the South East Horst block and would have "positive implications" for exploration prospects at its fully owned acreage nearby.

"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," Nexus managing director Ian Tchacos said in the statement.

Shares in Nexus, which in January agreed to buy rival Anzon Australia for A$625.55 (US$564) million, jumped as much 14% to A$1.71, before easing slightly to A$1.65 by 0445 GMT, reported Reuters.

Nexus said the discovery at Crux-4, which comes on the heels of successful drilling results at the Crux-3 well, was expected to enhance the viability of its Crux liquids project. A final investment decision on the project is due by August.

Nexus has estimated that the Crux field holds about 71 million barrels of total condensate resources. It has targeted a start to production in 2010.

Nexus holds an 85% stake in the Crux project while Japanese utility Osaka Gas holds the rest.

Apart from Crux, Nexus is also developing the Longtom gas field in Bass Strait off the southern state of Victoria, which is targeting first gas production mid-year.


Tuesday, 12 February, 2008, 07:16 GMT  | last updated: Tuesday, 12 February, 2008, 07:53 GMT

e-mail this article to a colleague


to email:  from:
comments: