Nexus Energy Acquires 100% of Crux Field

Nexus Energy has completed its acquisition of 100% of the Crux Gas Condensate Field with the transfer of title from former permit holders Mogal Marine Pty Ltd following payment of $10 million of funds previously held in escrow and the issue of $2 million in Nexus shares. Funding of $7million was provided via a debt facility secured from BOS International, a wholly owned subsidiary of Bank of Scotland.

The Crux field is located in Australian waters of the Timor Sea approximately 600kms north of Broome. The field contains an estimated 48 million barrels of recoverable condensate liquids and can be developed as a conventional gas liquids recycle project. The field also contains 1.3 Tcf of gas.

"This is very exciting for Nexus as we are now able to progress our plans for the appraisal and development of the Crux field. The value potential of this project is large. Independent resource estimates for the field and our scheme for its development translates to a value per share for Nexus of between $1.00 and $2.40. We are understandably very keen to get on with our program," Nexus Managing Director Ian Tchacos said.

To assist with Nexus' assessment of the resource the company is currently acquiring a new 3D seismic data set over the Crux field. This high resolution seismic data will facilitate the refinement of the Field Development Plan and the fast tracking of its development. It is expected to be completed later this month on schedule and under budget.

The Crux field is one of two major projects which will take Nexus from an innovative explorer to an oil and gas producer in the near future. The other is the Longtom gas field in Victoria's Gippsland basin for which Nexus recently signed a gas sales and processing agreement with Santos.

The Crux field was discovered in 2001 and has a massive 240 meter gross condensate rich gas column in high quality sandstone reservoirs. It lies in 170 meters of water which is regarded as a moderate working depth.