The well, in the Ashmore Cartier region of the Browse Basin, had been drilled to a measured depth of 3419m below the rotary table before the interruption on February 28 when the cyclone came within a range that could have threatened personnel and the rig. Operations were suspended and the rig was secured and de-manned.

At 8.30am yesterday, Nexus began re-manning the rig.

The forward plan is to re-enter the well and drill ahead to intersect the ‘A’ and ‘B’ sand reservoir sections encountered in the Crux-1 well.

Crux-2 confirmed a gross gas column of 70m with a net 26m of good sandstones in the Jurassic-aged Plover Formation. But it did not intersect reservoir sands thick enough to support gas injection for the company’s proposed liquids cycling project.

By sidetracking Crux-2 to a better location, Nexus aims to use the cased large-bore well as the first of up to six wells required for the potential recycle project.

“The Crux-2 ST1 sidetrack location will target an area towards the Crux-1 well beyond the point where a change in seismic character is observed,” Nexus said.

“It is expected from the seismic that the reservoir characteristics at the sidetrack location will be similar to those for reservoir sands encountered at the Crux-1 well.

“If the Crux-2 ST1 well is successful in encountering a significant gas column similar to Crux-1, it will be cased and suspended as a future development well.”

Nexus said, if successful, Crux-2 ST1 could be used as a gas injector for a liquids recycle project and as a subsequent producer for a liquefied natural gas project, which would be operated by Shell Development Australia.

Early in 2006, Nexus sold the rights to the gas (excluding condensate) in the Crux field to Shell for $US40 million.

The gas sales agreement provides for Nexus to be able to execute its condensate recycle project until December 31, 2020 at which time Shell will take ownership of the permit and will be able to extract the gas and any remaining condensate.

A 3D seismic survey acquired by Nexus earlier this year indicates that the field contains a best estimate contingent recoverable condensate resource of 71 million barrels, but the results of Crux-2 have made some observers sceptical of this estimate.

Nexus envisages a gas recycling scheme for the Crux liquids project, with about 960 million cubic feet per day being produced through three production wells. Over 25,000 barrels per day of condensate would be stripped from the gas before it is compressed and re-injected into the reservoir through three injection wells.

The wells are to be tied back to a floating production, storage and offtake vessel.