Keen interest in Crux farm-in: Nexus

NEXUS Energy claims it expects to be able to sell gas from its Timor Sea gas/condensate field, Crux, in return for a substantial upfront cash payment while retaining 100% interest and operatorship of the planned gas-condensate recycling project.
Keen interest in Crux farm-in: Nexus Keen interest in Crux farm-in: Nexus Keen interest in Crux farm-in: Nexus Keen interest in Crux farm-in: Nexus Keen interest in Crux farm-in: Nexus

The company said it could also farm-out an interest in the gas-condensate recycling project.

“It is expected that any incoming farminee to the gas-condensate recycling project will fund 100% of the planned Crux appraisal well and feasibility engineering prior to expected project sanction in the first quarter of 2007,” the explorer said yesterday.

“Nexus has received written proposals from several major international and domestic oil and gas companies. A number of other companies are in the final stages of due diligence of the Crux asset.”

Nexus said Crux could deliver significant value to the company through the extraction of condensate from planned gas-condensate recycle project as well as the forward sale of the remaining gas after the condensate has been extracted.

“Negotiations are ongoing but a final decision on the proposals received will be made shortly,” the company said.

Nexus is currently trying to fend off a hostile takeover bid by oil producer Anzon Australia. A Crux farmout would substantially boost Nexus’ share price.

Nexus (NXS) closed at 70 cents yesterday. Anzon (AZA) closed at $1.39.

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