The company said attempts to sell a stake in the Crux liquids project has not resulted in an acceptable offer and that while it continues to consider offers, the sale will no longer be actively marketed.

Nexus added it has placed the project on hold in the short term and is minimising future capital expenditures until market conditions improve.

The company also said it is negotiating to secure funding for the drilling of the Auriga structure, which has estimated recoverable resources of about 42 million barrels of liquids within tie-back range of the Crux field.

Nexus plans to start drilling in late May and expects a success to improve recoverable reserves and project economics for the Crux development.

It will also increase gas resources in the Crux area, enhancing the potential to recover liquids in conjunction with a liquefied natural gas development at a later date.

Meanwhile, the company said it has started the process of farming out a stake in the Echuca Shoals in WA-377-P, Browse Basin.

It said that a successful farm-out could result in a well being drilled later this year to test the resource potential of the field, which has the potential to house an LNG scale resource.

"Finding funding solutions, whilst ensuring Longtom achieves a cash flow positive position as soon as possible, is a key priority," chairman Michael Fowler said.

The Longtom gas project in the Gippsland Basin, offshore Victoria, is expected to start supplying gas to Santos in mid-2009.