Crux-4 drilling suspended as a future production well

Offshore staff

MELBOURNE, Australia -- The Sedco 703 drilling rig left the Crux-4 location in AC/P23 offshore Browse basin, Western Australia, this week after the well was suspended successfully as a future production well for the Crux liquids project, says Nexus Energy Ltd.

Crux-4 is the third appraisal well to be retained as a future development well and four additional development wells are planned for the Crux liquids project.

The Crux-4 well has confirmed that the Crux field extends into the previously undrilled South East Horst block, intersecting 126 m (413 ft) of net gas sand over a total column of more than 310 m (1,017 ft). The well encountered the top of the gas column at the highest point seen in the field to date, approximately 20 m (66 ft) above the highest gas sand seen in the Crux-3 well.

Nexus holds an 85% interest and Osaka Gas Crux Pty Ltd. holds 15%.

Crux-4 is the second of three wells to be drilled in the greater Crux area. The third well, Libra-1, is set to be drilled in the adjoining AC/P41 exploration permit in April 2008. Nexus holds a 50% interest in AC/P41 in conjunction with its partner, Shell Development (Australia) Pty Ltd.

02/26/2008