(MENAFN - ProactiveInvestors - Australia) Nexus Energy (ASX: NXS) and its partners in the Crux Joint Venture have been awarded a Retention Lease covering the Crux gas field in the Browse Basin offshore Western Australia.
Under the Lease, the JV will be required to reprocess existing seismic and procure long lead items for the planned Auriga well in the first year.
This will be followed by the drilling of Auriga with the intent of proving up gas as well as plugging and abandonment activities for the Crux-2, Crux-3 and Crux-4 wells in the second year.
Operator Shell (LON:RDSA) will also be required to carry out further studies on further appraisal requirements, commercial negotiations, commercial viability before concluding with a report outlining the final development concept for Crux in the fifth and final year.
Development options being considered include potential development of a new standalone floating liquefied natural gas and liquids facility to process Crux gas with the opportunity to process third party gas and liquids.
Nexus has a 15% stake in the new Retention Lease while Shell holds 82%. The remaining 3% is owned by Osaka Gas.