Nexus Energy spuds Longtom-4 Well

Australia based Nexus Energy Limited declares that its Longtom-4 development well in Production License VIC/L29, in the Gippsland Basin, offshore Victoria, was setting 16 inch casing having reached 755 meters measured depth relative to rotary table (MDRT) in a deviated pilot hole.

The Longtom-4 well spudded on June 21, 2008 and is expected to take approximately seven weeks to drill the pilot hole and then complete the horizontal production section of the well.

The horizontal section will be drilled to intersect the two deepest sands within the Longtom field, as indicated on the schematic cross section below. The West Triton jackup rig is drilling the development well.

Longtom-4 is the second development well for the Longtom gas project. The Longtom-3 well, drilled during the third quarter of 2006, is ready for commercial production with no further rig intervention required.

The flow capacity of Longtom-3 alone is expected to be sufficient to supply the anticipated maximum contract rate requirements for the Longtom field.

Timing of a planned third development well will depend on the results of Longtom-4 and the field’s production performance over time.

The current plan assumes this well will be drilled two to three years after project start-up.