Nexus will fund the remaining 6% of drilling costs and any well testing upon success at its retained 37.5% working interest while Apache will also assume operatorship of the permit at least three months prior to drilling the wells.

Nexus' outstanding financial commitment for exploration work to be completed prior to May 2006 will be reduced to $3.8 million. The committed permit work program for the permit consisted of 3-D seismic (satisfied by data trade with Esso in October 2003) and three exploration wells.

Upon the execution of a farmin agreement it is intended that a drilling rig will be secured by the parties with the intention of drilling the wells during the fourth quarter of this year.

Apache has operated 142 offshore wells drilled in Australia during the past five years.

Under the agreement Apache also has a 60 day option to farmin to the Vic/P56 permit on terms to be agreed by both parties.

Nexus will continue its technical work on the Vic/P56 with a view to drilling a well in that permit during 2005. In the event that Apache does not participate in Vic/P56 Nexus intends to stop actively farming out the Vic/P56 permit until it has completed the maturation of a prospect for drilling.

The reduction in work commitment as a result of this deal will enable Nexus to continue to responsibly build its acreage portfolio via the Government gazettal process.

Nexus has also moved its office to 17 Bennetts Lane Melbourne, Victoria 3000. Telephone: (03) 9660 2500; Facsimile: (03) 9654 9303.