Ann: June 2010 quarterly activities and cashflow , page-5

re: Ann: June 2010 quarterly activities and c... "My reading is Longtom is no good and Well - 5 is needed.
Another 3 months no gas from Longtom so at least another 10+ millions burnt."

newB, my reading is this...

Longtom
During the quarter our focus has been to resume Longtom gas production. We have been working
closely with Santos during the period and are on track for gas production to resume in late
September.

Michael Fowler
Executive Chairman

Nothing new there newB, or nothing any worse than we already knew.

Regarding Crux...

Crux
Under Richard Cottees guidance, the Nexus management team has been actively revising
strategies to ensure that Nexuss largest asset, the Crux liquids project, is commercialised in a
manner consistent with the terms of the AC/L9 Production Licence. The Production Licence for Crux
currently requires the Title holder to commence recovery operations on or before 23 February 2014.
Nexus has held discussions with a build/own/operate (BOO) contractor for the provision of an
FPSO who has confirmed the projects viability and indicated its capacity to provide funding from its
own third party financiers. In addition, Nexus has obtained an indication from a major Australian
bank that it is willing to be mandated to provide additional project finance. Both sources of finance
would need to be subject to standard commercial terms including:
Confirmation that the Crux Title arrangements are adequate so as to provide a bankable
production and return period of ten years. This would require an extension of the 31 December
2020 hand over date;
Standard subordination rights;
Confirmation of Nexus ability to effect sell-downs of Crux project equity if required.
These terms require negotiation with the other legal and equitable Title holders in Crux.

At least there appears to be some real strategic movements now, some substance at long last. Sure beats the "several interested parties" crap we've been fed for so long.

Having said that, Browse Basin WA - 424-P has, dare l say it, interested parties for a farm-out.

Cash balance $25 mil after a net decrease of $9 mil for the quarter.