Nexus Energy Limited (“Nexus”) has spudded the Fossetmaker-1 well in the Browse basin (WA-377-P permit ) offshore Western Australia. The Fossetmaker-1 well, which will appraise the Echuca Shoals gas field, is the first of seven firm wells and two optional wells in the company’s drilling program across a number of projects during the coming year.

Nexus has contracted drilling rig slots which will enable the company to undertake the most proactive drilling campaign in its history. The program will include four development and appraisal wells on the Longtom, Crux and Echuca Shoals fields.

Exploration drilling will include: • a well in Gippsland basin permit VIC/P49 on a prospect comparable with the Basker oil field; • a well close to the Crux field in the recently acquired AC/P41 permit; and • a gas exploration well in the Bonaparte gulf permit NT/P66 adjacent to the Blacktip field which is currently under development.

Funding for the drilling program has been sourced by a combination of recent share placements, project finance, the sale of an interest in the Crux field and strategic farm-outs. The company has accumulated funding resources in excess of A$350 million, a large portion of which will be dedicated to drilling activities.

Nexus managing director, Ian Tchacos said, “At a time when drilling rigs are hard to find we have assembled an outstanding program. We are cashed up and ready to drill. Our recent capital raising, farm-outs and asset sales initiatives place the company in an enviable position to undertake significant development, appraisal and exploration drilling programs over the coming year. This has the potential to reshape our company.”

The primary focus of the program is the appraisal and development of the company’s significant reserves and resources. The key appraisal and development wells include the Fossetmaker-1 well which spudded on 6 August 2007, two appraisal and development wells on the Crux field and a second production well on the Longtom field. “The company has been actively maturing its prospective exploration portfolio both in Northern Australia and the Gippsland basin. Exploration drilling will focus on LNG scale prospects in the Bonaparte and

Browse basins and near field oil and gas exploration opportunities in the Gippsland basin.” Mr Tchacos added.