Business Description:
Nexus Energy Limited (NXS) is an energy company focusing on exploration, development and production of oil & gas. NXS holds a portfolio of energy assets in two regions, namely, Gippsland Basin, off the south east coast of Victoria; and the Browse Basin, off the northwest coast of Western Australia.

Strategy Analysis:
The Company's long term strategy is to achieve growth through taking assets from the exploration phase through development and into first production. The company aims to achieve cash flow self sufficiency via its developed assets generating sustainable and predictable cash flows. The company's focus is on the Longtom and Crux assets. It is also progressing the appraisal of the Echuca Shoals discovery by negotiating a farm-out transaction. Nexus Energy reported negative cash flow of $20,000 for quarter ended 30 September 2011. Operating cash flow for the period was $2.23m. Payments for exploration and evaluation were $(378,000). Investing cash flow was $780,000. Financing cash flow was $(3.03m). Cash in hand at the end of the quarter was $62.58m. During the quarter, the Company significantly progressed the commercialisation of the Crux liquids projects towards the final investment decision, targeted for the end of this calendar year; the Company sold 6.2 PJ of gas and 57.95 Kbbl of condensate, booking total revenues of $29m at Longtom; and the Department of Mines and Petroleum approved the application for the variation of the Year 6 work program at Echuca Shoals that ends in March 2012.