Corporate Profile

Nexus Energy Limited (ASX: NSX) is listed on the Australian Stock Exchange with 558,780,101 million ordinary shares on issue from 27th June 2007.

The company, based in Melbourne, has assembled a portfolio of high quality assets, in three key regions including; the Gippsland basin in the south east of Victoria; the Browse basin, off the northwest coast of Western Australia and the Bonaparte basin, west of Darwin.

The primary assets are Crux, Longtom and Echuca Shoals.

Nexus has sold the gas in the Crux field to Shell Development Australia for $US40 million in cash. Shell has acquired right to the gas in the Crux field in 2021 after Nexus has extracted the liquids.

The Crux-2 ST1 sidetrack well encountered a gross gas column of 158 metres yielding a net gas pay zone of 102 metres, significantly in excess of pre-drill expectation. The well encountered 85 metres (79 metres net) of gas sands which are the same as the high quality Triassic aged "A" reservoirs encountered at the Crux-1 well.

In addition 73 metres (22 metres net) of a younger formation were intersected with excellent reservoir properties that are not seen at Crux-1.

On the 15th of March 2007 Nexus announced a revised best estimate contingent resource for the field within the AC/P23 permit of 55 million barrels, production from the Crux liquids project is planned in 2010.

Additional resource potential exists to the south west where the structure is mapped to extend into the AC/P41 exploration permit.

Nexus has recently been awarded the AC/P41 permit surrounding the Crux field with Shell Development (Australia) Pty Ltd.

Nexus also owns commercially attractive Longtom gas field in Bass Strait for which the company has already entered into a $1 billion gas sales contract with Santos Ltd.

The highly successful drilling and flow testing of the Longtom 3 appraisal and development well in Bass Strait, in August 2006, has improved the commercial development prospects of the Longtom field.

In the Browse basin Nexus owns the highly promising Echuca Shoals gas/condensate field resource, 100 km south of the Crux field. Shell recently signed a Heads of Agreement (HOA) on the key commercial principles to commence the apprasial of the Echuca Shoals permit.

Shell could earn up to 34 per cent of the Echuca Shoals field, in permit WA-377-P, in a $US50 million deal which includes an up-front payment of $US20 million for an initial 13.6 per cent interest in the field. By spending a further $US30 million on drilling at Echuca Shoals, Shell can lift its interest to a maximum of 34%.

The ability of the company to identify value generating opportunities, execute transactions and develop strategic partnerships has been the key to Nexus existing and ongoing success.