The company said the closely spaced survey is central to evaluating the 3,555sq.km permit’s potential, with the density of seismic coverage increased over the most prospective areas. These areas were highlighted by airborne gravity survey results acquired in June this year utilising BHP Billiton’s Falcon technology.

Based on the results of the 2D seismic survey, Nexus plans to drill an exploration well in the permit before June 2005.

Working towards capturing existing and emerging gas markets in Australasia, Nexus has identified contract opportunities for discovered gas from NT/P66, confident the permit is ideally located for existing and emerging northern and central Australian gas markets.

“NT/P66 is an under explored block, only one well in 1972, in close proximity to a number of existing gas discoveries including Tern-Petrel (NT RL1), Penguin (WA-313-P), the Blacktip gas field (WA-279P) and most recently, Polkadot (WA-313P),” said the company.

“Discoveries in excess of 500 Bcf are potentially economic on a stand-alone basis given the permit’s shallow water depths of 40-60 m (requiring drill depths of 1,800-3,000 m), benign sea conditions and close proximity (60-100 km) to shore. Smaller discoveries in the 200-300 Bcf range will be potentially commercial as tie-ins to proximal offshore infrastructure which is expected to be developed.”

The company has a 100% interest in NT/P66 and has commenced seeking upstream farmin partners to participate in the permit through the funding of seismic acquisition and processing as well as a future exploration well.