Nexus is simultaneously offering an interest in the VIC/P56 permit in the hope the two permits will provide a meaningful package for parties wishing to develop a position in the Gippsland Basin. In addition to the Longtom appraisal opportunity, a large exploration potential exists in proven play types within the two permits.

A probalistic reserves analysis based on the interpretation of the 3D seismic data acquired from ESSO and BHP Billiton has confirmed the range of gas reserves for the Longtom gas discovery at a P90 of 87bcf while upgrading the oil and gas potential of the two largest prospects in the permit, Grayling and North Grayling to a combined 90mmbbl of oil.

Currently three different development options are being considered to determine the value and viability of potential discoveries across the expected reserves range: an independent floating production storage and offloading (FPSO) development; using a jack-up drilling rig with export of oil via Esso/BHPP facilities; and sub sea wells tied back to exiting Esso/BHPP platforms for processing and export.

On the VIC/P56 Permit studies have confirmed the presence of the two well defined leads at Top Latrobe level, Haddock and Culverin, which were identified prior to the award of the permit. Top Latrobe is the reservoir level at which most of the oil and gas has been discovered in the Gippsland Basin.

The studies have also identified a large new lead, Scimitar, over multiple deeper target levels within the Latrobe and Golden Beach Formations with a P90 estimate of 90mmbbls of oil.