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06-06-2012 02:35:00

Nexus Has More Disruptions At Longtom Gas Project

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By Ross Kelly

SYDNEY--Nexus Energy Ltd. (NXS.AU) has suffered another hiccup at its Longtom gas project after customer Santos Ltd. (STO.AU) halted production at a gas-processing facility because of an electrical fault.

Nexus sells gas from its Longtom project, offshore Victoria state, to the Santos-operated facility on the coast. It said a series of production interruptions were caused by the fault, adding that its location has yet to be identified and may be within Santos' or Nexus' offshore facilities.

"A vessel has been mobilized and is scheduled to arrive in the field on 15 June 2012, depending on weather, to commence the inspection and rectification works," Nexus said in a statement.

Longtom has experienced previous long outages since it started producing gas in October, 2009, due to mercury contamination. In March, Nexus cut its reserves assessment for the Longtom field in half and booked a A$163 million impairment charge.

-By Ross Kelly at ross.kelly@wsj.com

(END) Dow Jones Newswires

June 05, 2012 20:35 ET (00:35 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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