The results of Longtom-2 in VIC/P54 confirmed the existence of a large gas column in a formation from which no hydrocarbons had previously been produced and represents a potential new play type in the Gippsland Basin, according to Nexus.

But the failure of DST-2 to flow hydrocarbons to surface suggested the reservoir section could have been damaged during drilling, the company said.

The side track well will obtain a core over the reservoir section perforated in DST 2 in order to determine the porosity and permeability of this interval and provide key information on the deliverability of the reservoir in the absence of a valid test. The side track and coring should take about six days, according to Nexus.

Upon completion of coring, the well will be plugged and the rig will be moved to the Grayling location.

During November, Nexus announced that an analysis of wireline logs indicated the well had intersected 96 metres of net gas bearing sands.

Interests in VICP54 are Nexus Energy VICP54 Pty Ltd 37.5% and Apache Northwest Pty Ltd 62.5% (operator).