Nexus Energy Limited (“Nexus”) is preparing to drill the Crux-2 well on the Crux gas/condensate field in the Browse Basin. Nexus has taken possession of the Songa Venus semi-submersible rig which is currently being towed to the Crux location in preparation for drilling which is expected to commence by the New Year.

Nexus has designed the well to appraise the Crux gas liquids resource to enable a development decision on its 100% owned Crux liquids project scheduled for mid 2007. If successful, the well will be the first of six development wells planned on the field to recover an expected 71 million barrels (Nexus best estimate contingent recoverable resources) of condensate (a high value premium light oil).

Nexus is concurrently completing front end engineering and development (“FEED”) studies for the development of Crux liquids via a floating production storage and offloading vessel (“FPSO”). FEED is expected to be completed in January 2007 and Nexus has already commenced the tender prequalification process with engineering contractors for the supply of the FPSO and the gas processing plant.

The Crux-2 well is to be located two kilometres northeast of the Crux-1 discovery well, which encountered a 244 metre gas column in high quality Triassic aged reservoirs. The well will be drilled to an estimated total depth of 4,120 metres sub-sea and has been designed to be kept as a future injection well as part of the overall development of the Crux field.