On December 29, the company announced that Culverin-1 intersected the upper reservoir target level – the Culverin prospect – without finding any indications of hydrocarbons.

Even though the well, which will be plugged, did not result in a commercial discovery, Nexus managing director Ian Tchacos said it demonstrated that oil was migrating though good quality sands in the area.

“Though it is unlikely that this accumulation will contain economic hydrocarbon volumes the results are encouraging in the context of the prospectivity of the Vic/P56 permit and the adjoining Vic/P49 permit,” Tchacos said.

“Despite the overall results we are pleased with the drilling program at the Culverin-1 well, the first we at Nexus have operated.”

He said the well operations were conducted safely and efficiently. Tchacos also expected the completed exploration program would come in on or below the budget.

“While the Culverin well did not provide Nexus with a commercial oil discovery on this occasion, the financial exposure to shareholders has been minimal as a result of the company’s ongoing strategy of funding drilling operations via farmout,” he said.

Joint Venture interests in Vic/P56 and the adjacent Vic/P49 permit areas are: Nexus Energy Limited (operator - 40%); Korea National Oil Corporation (30%); Seoul City Gas Company Ltd. (20%); and Anzon Australia Limited (10%).