A couple of months ago, the company was forced to downgrade its resource size estimate for the field when its Crux-2 appraisal well failed to encounter the uppermost “A” gas reservoir structure.

But now the Melbourne-based explorer has said the Crux-2 sidetrack well had intersected the “A” and “B” sands as predicted, and has also found an unexpected pay zone in a younger formation it described as having excellent reservoir properties.

Nexus managing director Ian Tchacos said these results were a “significant step” forward for the Crux liquids project.

“The intersection of a full column of ‘A’ sand gas reservoir enhances our confidence in the viability of the Crux liquids project,” he said.

“The additional gas reservoirs encountered here, which were not seen at Crux-1, are a potentially significant bonus, providing additional resource potential not previously accounted for in the resource estimates for the field.

“We now look forward to progressing the Crux liquids project with renewed vigour. Our goal is to secure an investment decision for this significant project in early 2008 with a view to first production in 2010.”

Nexus said these results confirmed the northeastern extension of the field.

As a result, it expects the core area of the Crux field to contain sufficient condensate volumes necessary to underpin the development of the liquids project.

The well encountered 85m (79m net) of high quality Triassic-aged “A” sands, the same sands intersected in the Crux-1 well, bringing the total figure to 158m of gross gas column, or 102m net.

A further 25m of net gas pay is interpreted in the Triassic-aged “B” sands below a 60m shale based on correlations with the Crux-1 well.

Once logging is complete, Nexus plans to suspend the sidetrack as a future injection well.