The Crux field is located in Retention Lease AC/RL9 in the Browse Basin, offshore Western Australia. The Nexus interest in the Crux field was initially acquired in January 2006. The Browse is a dynamic basin with significant operations and commercial activity taking place. The Nexus assets, AC/RL9 and WA-377-P, are strategically positioned with other discoveries nearby.
Five intersections of the Crux field have been drilled to date and around 280km2 of 3D seismic has been collected to delineate the structure. Crux has some unique advantages being in moderate water depths, liquids rich with low CO2 content and is in close proximity to the world's most valuable LNG market.
On 3 August 2012 Nexus announced the executed binding agreements with Shell Development (Australia) and Osaka Gas for the consolidation of interests in relation to the Crux AC/L9 asset.
Following receipt of Title Registration approvals (announced on 23 October 2012) and FIRB approvals (announced on 28 September 2012), the consolidation agreement was completed.
The new integrated gas and liquids Joint Venture is now established, providing for:
The ability to position and develop Crux as a significant hub in East Browse.
The potential development of a new FLNG gas and liquids facility to process Crux gas with the opportunity to process third party gas and liquids
Nexus' participation in the LNG supply chain with title to its proportionate share of LNG and liquids
The consolidation agreements provided Nexus with a put option to sell 2% (of its 17% participating interest) in the Joint Venture to Shell for A$75 million. On 19 December 2012, Nexus provided Notice of Exercise to Shell. Following completion, the participating interests in the Joint Venture are Nexus 15%, Shell 82% (Operator) and Osaka Gas 3%.
The new Joint Venture completed the process to convert the existing Production Licence (AC/L9) to a Retention Lease. This required a detailed work program which includes technical studies of a range of development options, including a standalone development concept, and exploration drilling of the Auriga prospect targeted for early 2014. The Retention Lease was granted on 20 February 2013.
East Browse, which contains the Crux AC/RL9 field, is strategically positioned with other discoveries nearby. East Browse is a world class petroleum system with at least four discoveries and is suited to the new floating LNG technology.
The consolidation of interests in the Crux AC/RL9 lease is a transformational event for Nexus and repositions the Company with the potential of developing a new FLNG facility in the East Browse hub with Crux as the anchor resource.