The Melbourne-based company opened the offshore Gippsland Basin well up last night at an initial flow rate of 30MMcfd, before it was choked back to achieve a stabilised flow-rate.

Longtom-3 is currently testing through a 1-inch choke with a flowing well-head pressure of 1200psi over the 400 sand interval at a depth of 2135-2170m. This is the sand interval in which flow was not achieved in Longtom-2.

“The results from this test confirm the flow potential of the 400 sand reservoir section in the Longtom field, addressing a major concern leading up to the drilling of the Longtom-3 well,” Nexus managing director Ian Tchacos said.

“A flow was not achieved in the second test of Longtom-2 – a test which Nexus has interpreted to have failed due to downhole mechanical problems.”

Nexus plans to continue monitoring stabilised flow rates and pressures until later today before shutting in the well for about 12 hours to monitor the pressure response from the reservoir.

The company said it was important to note that these results were preliminary, with additional information to be provided once testing is concluded.

Looking ahead, Nexus plans to isolate the 400 sand interval to prepare the well for a combined test of the 100, 200 and 300 sands (lower sands) completed in the horizontal section of the well.

Once the lower sands are tested, the well will be suspended as a future producer. Results from the second test are expected to be available over the next week.

Apache Northwest, which has a 62.5% interest in Vic/P54, has a right to buy back into the field development following the drilling of Longtom-3 by paying Nexus six times the cost of its share of the project, plus back costs associated with its share of the program.