The FALCON system has resulted from a 10 year, US$30 million development project between BHP Billiton and holders of patents for the airborne gravity gradiometer and will allow Nexus to acquire a highly detailed, closely spaced survey over the entire permit.

The NT/P66 permit is a prospective block in a world class gas province close to the existing gas discoveries at Blacktip, Penguin, Petrel and Tern. The permit is over 3,500 sqkm in area and only sparsely covered by seismic data.

Nexus has already identified several leads in the permit that have the potential to contain reserves in the range of 250 Bcf up to 1000 Bcf but the company intends to acquire an additional 3,300 km of 2D seismic data in the permit to mature these leads and identify other potential targets for drilling next year.

Discoveries in excess of 500 Bcf are potentially economic on a stand alone basis given the benign sea conditions, relatively shallow water depths and the permit’s proximity to shore.

The results of the airborne gravity data will ensure that the seismic acquisition is focused over the more prospective areas in the permit.

Structures in this part of the Bonaparte basin are generally formed by the movement of deep seated salt. The presence of salt causes small perturbations in the earth’s gravitational field and gravity surveys have been successfully used in other parts of the world to delineate salt related structures.

Nexus Energy currently holds a 100% interest in the permit with plans to farmout the permit to upstream companies or seek investment from downstream participants.

Currently Nexus is utilising funds being raised from its current capital raising program to intensify its exploration activities in the Gippsland and Bonaparte Basins with a view to participation in up to six exploration wells in the next 12 to 18 months.