reality, page-18

Hi all,

Despite the fact that I’ve lost plenty on NXS, through not trading her objectively, I still sleep well at night with a large % of my portfolio in NXS –I’m sure many of you do too.

Why? The answer lies in information in slide 19 of the 2009 AGM presentation.

Nexus has a very low ratio of market capitalisation to oil reserves.

Slide 19 shows a market cap of just over 300 M, and 2P (proven plus probable) oil reserves of 120 MMboe (million barrels of oil equivalent).

This slide also makes the point that NXS’s market cap in June 08 was three times higher (approx 1,050 Mil), but now the reserve base still remains intact.

This essence of this data is confirmed on page 14 of the recent Pattersons report, which shows a very low ratio of enterprise value to 2P barrels of oil.

What does this mean? In the words of the Pattersons report, there is very low downside, but promising potential upside.

Sure –some things haven’t gone right for IT....... but at least he managed to avoid selling the family farm in a GFC fire sale.

With the credentials of the new board members, there is plenty of potential for positive activity.


Cheers to all.

John S.

Foregoing is all IMHO ......