Nexus said Fossetmaker-1 was the first of seven firm wells and two optional wells in the company’s drilling program across a number of projects during the coming year.
The Melbourne-based midcap said it has contracted drilling rig slots allowing it undertake the most proactive drilling campaign in its history, including four development and appraisal wells on the Longtom, Crux and Echuca Shoals fields.
“At a time when drilling rigs are hard to find we have assembled an outstanding program,” Nexus managing director Ian Tchacos said.
"We are cashed up and ready to drill.
“Our recent capital raising, farm-outs and asset sales initiatives place the company in an enviable position to undertake significant development, appraisal and exploration drilling programs over the coming year. This has the potential to reshape our company.”
At Echuca Shoals in WA-377-P, Nexus is using the Shell-operated semi-submersible drilling rig Ocean Epoch to drill Fossetmaker-1, located about 7km east-northeast of the discovery well.
Nexus will remain the permit operator, but Shell will be responsible for drilling operations on Fossetmaker-1. Under the terms of the farm-in agreement, Shell will fund the first $US30 million ($A35 million) of the well.
Also in the Browse Basin, Nexus has secured the Sedco 703 drilling rig for two appraisal wells on the Crux field, scheduled for the first quarter of next year.
The portion of the Crux field within permit AC/P23 contains a best estimate contingent resource of 65 million barrels of condensate.
Additional resource potential exists to the southwest where the Crux structure is mapped to potentially extend into the AC/P41 exploration permit, in which Nexus holds a 50% interest with Shell.
In Victoria’s offshore Gippsland Basin, Nexus has contracted the West Triton jack-up rig to drill the Longtom-4 well in VIC/P54 during the second quarter of next year. It also has an option to drill a second well using the same rig.
Best estimate contingent resources for the Longtom gas/condensate field have been confirmed at 435 petajoules (PJ) of gas and 5.2 million barrels of condensate by international consulting firm Gaffney, Cline and Associates.
Nexus has booked proven plus probable reserves of 350 PJ of gas and 4 million barrels of condensate to the project. This reflects the sales volumes currently contracted to Santos Ltd from the Longtom field.
Elsewhere in Bass Strait, Nexus will use the Kan Tan IV semi-submersible drilling rig to drill a well in the VIC/P49 permit in the third quarter of next year.
Nexus also has an option to drill a further well using the same rig.
A 1700 kilometre 2D seismic survey has recently been acquired in the VIC/P49 permit to evaluate prospects adjacent to the producing Basker oil field in the neighbouring production licence L26 and the large, deep-water leads in the middle of the permit (Tiger and Leopard).
In the Timor Sea, the Wilcraft jack-up rig will be used to drill a gas exploration well in Nexus’ 100%-held NT/P66 permitin the Bonaparte Basin. The well will target a gas prospect in close proximity to the Black Tip development.
Funding for the drilling program has been sourced by a combination of recent share placements, project finance, the sale of an interest in the Crux field and strategic farm-outs.
The company has accumulated more than $350 million, a large portion of which it said would be dedicated to drilling activities.
