garfish update, page-2

NEXUS ENERGY LTD ASX CODE: NXS
DATE: 17 JUNE 2008
Progress Report No. 3
Garfish-1 exploration well
in Production Licence VIC/L29
Nexus Energy Limited (“Nexus”) advises that as at 06:00 am (AEST) the Garfish-1 exploration well in Production Licence VIC/L29 in the Gippsland Basin was being plugged and abandoned as planned after the completion of wireline log acquisition to a final depth of 2,550 metres true vertical depth sub sea (“TVDSS”).
The Garfish-1 well has confirmed the presence of a series of sands within the Admiral Formation appraisal objective which may possibly be correlated to the main reservoir sands in the existing Longtom wells some 5 kilometres away in the eastern part of the permit.
Slightly elevated gas readings were observed while drilling through the main reservoir sand, however further analysis is required to fully assess whether these readings represent a gas charged extension of the reservoirs intersected in previous Longtom wells. The analysis, which will include integration of wireline logs, reservoir pressure data and side wall cores, is expected to be completed by the end of June.
The results from the Garfish-1 well do not impact on 1P reserves for the field and, at this stage, it is not clear what impact the well will have on 2P reserves. The results of this well will be combined with information collected from drilling the Longtom-4 development well before a re-assessment of reserves is undertaken. The West Triton jack-up rig is scheduled to move to the Longtom-4 development well location over the next few days and is expected to spud later this week.
Wireline logs from the upper exploration objective confirmed the earlier interpretation, announced last week, that the sands were water bearing.
Background
The primary exploration target of the Garfish-1 well was to test a seismic anomaly which directly overlies the Longtom gas field. Similar seismic anomalies at Longtom had been shown to indicate the presence of gas bearing reservoir sands. The well was also deepened to the main reservoir sands of the Longtom field to appraise the western part of the VIC/L29 licence area.
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NEXUS ENERGY LTD ASX CODE: NXS
DATE: 17 JUNE 2008
Fluid Index seismic section across the Longtom field and the Garfish-1 primary exploration target
Participants
Production Licence VIC/L29 Nexus Energy VICP54 Pty Ltd (100%)
Location
The Garfish-1 exploration well is located in Production Licence VIC/L29, in the offshore Gippsland Basin, Victoria.
Latitude: 38 deg 06’ 38.0838” S
Longitude: 148 deg 15’ 17.1466” E
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Map showing location of the Garfish prospect in Production Licence VIC/L29
NEXUS ENERGY LTD ASX CODE: NXS
DATE: 17 JUNE 2008
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For further information please contact: Ian Tchacos David Griffiths Managing Director Gryphon Management Australia Phone: 03 9660 2500 Phone: 08 9382 8300 Fax: 03 9654 9303 Mobile: 0419 912 496 Website: www.nexusenergy.com.au Website: www.gryphon.net.au
Or Or
Jodie Phillips Ian Howarth
Investor Relations Manager Farrington National
Phone: 03 9660 2500 Phone: 03 9223 2465
Fax: 03 9654 9303 Mobile: 0407 822 319
Website: www.nexusenergy.com.au Email: [email protected]