Nexus has advised that the Libra-1 exploration well in exploration permit AC/P41 in the Browse Basin, offshore Western Australia, was spudded on November 5, 2008.

As of November 6, the conductor was set and operations were preparing to drill ahead in 17 1/2 inch hole.

The Ocean Epoch semisubmersible rig is drilling the exploration well which is operated by Shell Development (Australia) Pty Ltd on behalf of the joint venture.

The Libra-1 well is expected to intersect the target reservoir in late November, and is testing near field exploration potential around the greater Crux area. Nexus' estimate of pre-drill most-likely gross recoverable resource for Libra stands at 500 Bcf of gas and 19 MMbbl of condensate. Nexus also believes that a successful result at Libra-1 would significantly enhance the likelihood of encountering hydrocarbons in the adjacent Auriga and Caelum prospects within exploration permit AC/P23.

Nexus' managing director, Ian Tchacos said, "Nexus is excited to be drilling this potentially high impact prospect. Should Libra prove successful in AC/P41, it greatly improves the likelihood of success at the Auriga and Caelum prospects in AC/P23 which could be tied-back to the Crux liquids project, enhancing the overall project value. On a broader view, we map the potential for over 6 Tcf of gas resource with the potential for in excess of 200 million barrels of associated condensate across AC/P23 and AC/P41 in the greater Crux area."

Participants following completion of farm-outs, exploration permit AC/P41:

Nexus Energy ACP41 Pty Ltd 15% Mitsui E&P Australia Pty Ltd 20% Shell Development (Australia) Pty Ltd 65% (operator)

Tags: Nexus Energy, Shell