The first well, Garfish-1, in Victoria's offshore Gippsland basin is expected to be spudded this week.

Tchacos said the well has a resource potential of 180 billion cubic feet of gas and its primary target will test a seismic anomaly that directly overlies the company's Longtom gas field.

Similar seismic anomalies at Longtom have been shown to indicate the presences of gas-bearing reservoir sands.

Following the intersection of the primary target, the well will be deepened to confirm that the main reservoir sands of the Longtom field extend to the western part of the VIC/L29 licence area.

In permit NT/P66 in the Northern Territory, Nexus is planning to drill Sidestep-1 in July.

Sidestep-1 will test a shallow seismic anomaly about 10km northeast of the Blacktip gas field.

Tchacos said the Intra Mt Goodwyn target level was gas-charged in the Blacktip discovery well.

The Sidestep prospect has the potential to contain about 900 billion cubic feet of gas, with additional follow-up potential, he said.

Nexus owns 100% of permit NT/P66.

Drilling of the Libra-1 well in the company's Crux field in the Browse Basin off the northwest coast of Western Australia will begin once a rig date has been finalised.

The well was previously expected to be drilled in May.

Libra-1 will test a possible extension of the Crux field into AC/P41 and has the potential to contain 500Bcf of gas and 19 million barrels of oil.

Elsewhere in the Browse, studies to determine the location of another well after the failed Fossetmaker-1 well are near completion.

Fossetmaker-1 was drilled 7km from the Echuca Shoals-1 discovery and encountered 10m of gross pay below the Echuca Shoals gas column.

The appraisal well intersected the top reservoir section deeper than expected and indicated a possible gas-water contact.

Echuca Shoals-1 intersected a 70m gross gas column without intersecting a gas water contact.

Nexus believed the greater Crux area and Echuca Shoals had enough gas to support a floating LNG project in, according to Tchacos.

The company's key assets and liabilities as of March 31 include: net 2P reserves from Longtom and Crux fields of 122 million barrels of oil equivalent, $124 million of cash, a 19.2% stake in Anzon Australia worth about $86 million, $107 million finance available and a sub debt settled at $110 million.

Tchacos said Nexus aims to be producing 40,000bpd net by 2011.