Nexus gains 100% interest in Gippsland basin

Nexus Eenergy Ltd. has entered into an agreement with Liberty Petroleum Corp. for a 100% working interest in a 630 sq km exploration permit in the offshore Gippsland basin. The permit will be known as VIC/P54 and has been granted for six years. In return, Nexus has granted Liberty an over riding royalty interest of 3% for the first 50 MMboe and 4% for production in excess of 50 MMboe.

Nexus Eenergy Ltd. has entered into an agreement with Liberty Petroleum Corp. for a 100% working interest in a 630 sq km exploration permit in the offshore Gippsland basin. The permit will be known as VIC/P54 and has been granted for six years. In return, Nexus has granted Liberty an over riding royalty interest of 3% for the first 50 MMboe and 4% for production in excess of 50 MMboe.

The VIC/P54 permit is in a block that boasts the highest success rate in Australia. The license is close to several producing fields and discoveries, including Snapper, Turrum, Marlin, Tuna, Sunfish, and Patricia/Baleen, and is on the northern margin of the basin. A 410-m gross gas column has intersected the license at Longtom, which Nexus believes warrants further technical study to determine its reserves potential and scope for possible commerciality with further appraisal.

Esso, operator of the adjacent retention lease VIC/RL4, has already acquired a 3D seismic survey over half of the block. This data will be available to Nexus during the course of its three-year work program and will assist the company to better define existing leads in the permit into drillable prospects and define other leads.

04/14/03

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