Longtom-3 is part of a sole risk appraisal program operated by Nexus, which has increased its best estimate of the Longtom Gas Field by 38% to 438 billion cubic feet of possible gas reserves.

The well is designed to evaluate the extent and productivity of gas-bearing reservoirs encountered in the Emperor Formation by the Longtom-1 and Longtom-2 wells.

Longtom-2 well intersected 96m of net gas sands over a gross interval of 260m. Longtom-3 will be drilled about 1.2km southwest from the Longtom-2 site.

The well will be complex and will cost about $35 million, roughly double the average cost of a Bass Strait well.

The first phase of drilling will involve a near-vertical well (the pilot hole) designed to confirm the presence, extent and quality of gas-bearing reservoirs.

Upon the confirmation of a minimum gas column, the pilot hole will be plugged back and deviated. A horizontal well section will be drilled to intersect gas reservoirs encountered in the pilot hole.

It is intended that the horizontal well will be completed and tested to confirm the productive potential of the reservoirs.