Nexus Energy Limited (“Nexus”) advises that the Fossetmaker-1...

Nexus Energy Limited (“Nexus”) advises that the Fossetmaker-1 well has reached a depth of 3,822 metres and wireline logs have been acquired. Gas shows were recorded during drilling over a section of sandstones equivalent in age to the sandstones encountered in the Echuca Shoals-1 well. Wireline logs indicate a 10 metre gas interval with a low net to gross at a depth just below the 70 metre main gas column seen in the Echuca shoals gas well.
Wireline run formation pressure measurement logs indicate that the formation is tight at this location. It is unclear whether the gas encountered in Fossetmaker-1 is in pressure communication with the gas observed in the Echuca Shoals-1 well.
Further study will be required to assess the commercial implications of this result for the Echuca Shoals gas accumulation.
The well is currently being plugged prior to releasing the rig. The well has been drilled at no cost to Nexus pursuant to a farm-in agreement with Shell Development (Australia) Pty Ltd (“Shell”).
Fossetmaker-1 is located approximately 7 kilometres ENE of the Echuca Shoals-1 discovery well and was drilled to evaluate the possible eastern extension of the Echuca Shoals field. Nexus will provide a reassessment of the Echuca Shoals resource potential following a complete technical evaluation incorporating the results of the Fossetmaker-1