Rick Wilkinson
OGJ Correspondent
MELBOURNE, Oct. 25 -- Melbourne independent Nexus Energy Ltd. plans to drill the Crux-2 appraisal well in December in Crux gas-condensate field on Permit AC/P23 in the Browse basin off Western Australia.
Nexus will fund field development partially with $53 million (Aus.) just received from Shell Development Australia Pty. Ltd. in full payment for the 2 tcf of gas reserves in the field (OGJ, June 9, 2006, Newsletter). Recent 3D survey data also indicate condensate reserves estimated at 71 million bbl.
Songa Offshore's Songa Venus semisubmersible rig has been contracted to drill the well. Subject to the well's results, Nexus expects to commit to a condensate stripping and gas reinjection development of Crux field by mid-2007. Nexus will run its condensate-gas recycling project until Dec. 31, 2020, at which time Shell will take ownership of the permit and extract the gas and any remaining condensate.
In a separate deal, Nexus will receive another $53 million (Aus.) from an unnamed company to help fund Crux development in return for a 34% interest in the liquids project.
FEED under way
Nexus began front-end engineering and design studies on the project in February and expects first condensate to be produced by mid-2009. Plateau production is expected to last for 4-5 years.
Development plans involve three subsea production wells and three gas-reinjection wells tied back to a floating production, storage, and offloading vessel with onboard gas processing and compression facilities.
Flow from the three wells is expected to total 960 MMcfd, which would sustain a flow of more than 25,000 b/d of condensate stripped from the gas stream before the dry gas is compressed and reinjected into the reservoir.
Crux lies 100 km northeast of Permit WA-377-P, which Nexus owns 100%. WA-377-P contains the large Echuca Shoals gas field, further appraisal of which also is in progress. It is adjacent to Japanese company Inpex's Ichthys gas field, which is being considered for an LNG development.
