The issue has been placed to eight institutions and a range of sophisticated clients of Euroz Securities Limited and Grange Securities Limited and was also offered to sophisticated clients of EL & C Baillieu Stockbroking Limited.

“The placement was very well supported by the company’s existing institutional shareholders and has also seen the introduction of several new financial institutions to the company’s share register,” the company said in a statement.

“This additional capital will allow Nexus to react quickly to success with a view to rapidly commercialising discoveries, maintaining the company’s momentum across its rapidly maturing asset base and seeking further growth opportunities where the company can add value through its strategy of early entry and gaining leverage from its skills.”

The funds are to be used for several projects, including: assessment, technical studies and appraisal of the Longtom discovery; seismic acquisition and processing in the Vic/P39 permit in the Gippsland Basin; and farmout and drilling preparations of between three or four additional wells across Nexus’ exploration portfolio, including a well in the NT/P66 permit (Bonaparte Basin), up to two wells in the Vic/P56 permit (Gippsland Basin) and a well in the Vic/P39 permit.

They will also help pay for ongoing new ventures evaluation work targeting production and reserves in ground acquisitions, as well as exploration portfolio development, according to Nexus.

If the Grayling-1 exploration well is successful, some of the funds will be used to evaluate and test this well.

Shareholder approval is not required for the placement as the issue falls within the 15% limit imposed by ASX listing rule 7.1. The allotment of shares is expected to occur on 24 December 2004.