crux progress report

Crux-3 Appraisal Well
in Exploration Permit AC/P23



Nexus Energy Limited (“Nexus”) advises that at 06:00 am (ACST), the Crux-3 appraisal well in exploration permit AC/P23, in the Browse Basin, had reached a total depth of 3,998 metres true vertical depth (“TVD”) and wireline logging operations were underway.

Wireline logs recorded to date indicate that the well has intersected approximately 150 metres of high quality net pay over a gross vertical gas column of 300 metres. As announced previously, the majority of this pay is at the main reservoir level where 134 metres of net pay were
intersected. Age dating has indicated that the overlying 13 metre thick gas sand is in the Montara Formation.

The confirmation of this younger gas charged reservoir indicates that the Crux field contains four distinct reservoir sections consisting of Montara Formation, Plover Formation and Nome Formation “A” and “B” sands.

The pressure data from Crux-3 and the other Crux wells confirm that the gas sands in each of the formations are in pressure communication across the field and form part of a single accumulation.

The forward plan is to complete the wireline logging and then conduct a production test. The information gathered from the production test will be used in the detailed design of the production facilities for the Crux liquids project.

The Crux-3 well is the first of three wells to be drilled in the greater Crux area over the next three months. Two of the three wells, including the Crux-3 well, will be drilled in AC/P23 on the Crux field. A third well will be drilled in the adjoining AC/P41 exploration permit to test the Libra exploration prospect, in which Nexus holds a 50% interest.

Nexus’ managing director, Ian Tchacos said “The results continue to be very encouraging. The confirmation of a fourth reservoir section is expected to have very positive implications for the potential size of the Crux accumulation and the exploration prospectivity of the greater Crux area including the adjoining AC/P41 permit. The fact that all the reservoir sands encountered to date
are in pressure communication with each other simplifies the development plan for the Crux liquids project. I look forward to reporting on the outcome of the production test when that information is available.”