Oil and gas company Nexus Energy Ltd
(ASX:NXS) says it has completed the development of its Longtom Gas in the Gippsland Basin offshore Victoria.
Nexus says the project has been producing gas and condensate at stable rates for over two weeks via Santos Ltd (ASX:STO) onshore gas plant in Orbost.
Managing director Ian Tchacos says Nexus is now a producer, with the Longtom gas project expected to provide Nexus with stable cash flow over the next ten or more years.
Mr Tchacos says the project is an important asset for the company’s financial stability and an attractive platform from which it will work to deliver further growth.
The company forecasts that the Longtom project will generate pre-tax cash flow of around $70 million per annum.
Nexus has a sale agreement with Santos for the purchase of up to 350 petajoules over the life of the field.
Nexus Energy has posted profits in the last couple of years following three years of losses.
