Rick Wilkinson
OGJ Correspondent
MELBOURNE, Sept. 10 -- Melbourne company Nexus Energy Ltd. has agreed to farm out to an unnamed company interests in its two Browse basin permits for $309 million. The assets include a 25% interest in the Crux liquids project on AC/P23 and a 20% interest in adjacent exploration permit AC/P41, off northwestern Western Australia.
The company has signed a memorandum of understanding agreeing that the buyer will pay $275 million in cash and $34 million in exploration funding, which is earmarked for three wells to be drilled on AC/P41, including the Libra prospect.
Nexus said the transaction values the greater Crux area at about $1.5 billion (Aus.), which is a major boost in value since the company bought the project in January 2006 for $12 million (Aus.).
The move at Crux (AC/P23) brings in a third partner to the liquids project, which contains an estimated 75.2 million bbl of condensate.
Nexus' stake in AC/P23 will drop to 60%. It had already sold a 15% stake in the permit to Osaka Gas in September 2007 for $75 million (Aus.).
The latest transaction is subject to approvals and pre-emption rights but is expected to be completed during the last quarter of this year.
Nexus's share in AC/P41 will be reduced to 30%. Shell holds a 50% stake in AC/P41, with Osaka gas 15%.
Gas reserves in Crux, previously sold to Shell Australia for $52 million (Aus.), will be produced when the liquids project has been completed, or by 2020 if that comes first.
