Nexus Energy said it had signed a preliminary agreement to farm out a stake in its Crux liquids project and adjoining acreage on the Browse basin off Western Australia in a deal worth $309 million.
The company said the memorandum of understanding signed with an unnamed “international energy company” would involve the Crux natural gas project on AC/P23 as well as adjoining exploration acreage on AC/P41. Funds from the farm-out would be used to develop the Crux project, Nexus said in a statement today. Nexus said its partner would farm into a 25% stake in AC/P23 for $275 million, and would fund Nexus’ next three wells on the AC/P41 permit up to #34 million to earn a 20% stake in that permit. Melbourne-based Nexus is hoping to tap enough gas at Crux and the adjoining acreage to supply a liquefied natural gas project, and said it had sought out a partner with significant expertise in liquefied natural gas production. Nexus is spending about $975 million on exploration over the next three years to secure gas to support its LNG ambitions. The deal is expected to be completed by the fourth quarter of this year, and will be effective from July 2008. Nexus said the name of the company would not be disclosed until approval for the farm-out had been received from both boards, as well as from Nexus’ existing partners at Crux. Japan’s Osaka Gas holds a 15% stake in AC/P23, while Nexus holds the remaining 85%. Anglo-Dutch supermajor Shell holds interests in some of the permits
adjoining the Crux field.
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