Nexus’ Browse Basin gas resources were estimated at around $A41.9 million by the Independent Expert, with the offer from Shell exceeding that value.
Nexus managing director Ian Tchacos said the deal would enable the company to begin its gas-condensate recycling project as planned.
Propositions to farm-out an interest in the project are currently under review by Nexus.
Acceptance of the proposal would mean the incoming farminee would fund 100% of the planned Crux appraisal well and feasibility engineering before the expected project sanction in the first quarter of 2007.
“Nexus has been able to extract upfront value from a remote gas resource in less than six months, a fantastic achievement when viewed in relation to other major gas resources in the region, which have stood idle for more than 35 years,” he said.
Nexus will now be able to progress with the gas-condensate recycle project at Crux as planned as well as the appraisal of the Echuca Shoals gas-condensate resource because of sufficient additional funding the offer had produced.
“The rapid progress we are making in the Browse basin with Crux and Echuca Shoals is very encouraging,” Tchacos said.
Tchacos said Nexus was very pleased to have attracted an offer from one of the world’s largest oil and gas companies.
Shell has said it is very keen to expand its LNG operations in northwest Australia.