Nexus Energy Limited (Nexus) has received shareholder queries following the departure of CEO Richard Cottee from Nexus and confirms that the unexpected resignation was not related to any transaction with respect to Crux and does not impact in any way on the Company’s announced strategy with regards the Crux asset.
Leading up to his resignation, a farm out proposal was tabled by Mr Cottee in connection with another Company asset. The proposal contained some terms which were commercially unacceptable to the Nexus Board. The Board, having taken independent advice, formed the view that the proposal as tabled was not in the best interests of shareholders. Negotiations are ongoing in relation to the farmin and remain confidential. However, if a transaction is approved by the Nexus Board, it will be on terms which provide long term strategic benefits for both parties and, importantly, on terms which are in the best interests of Nexus shareholders.
The Nexus Board is committed to progressing the Company’s objectives in accordance with the stated timelines. The Company will continue to keep shareholders informed in the weeks ahead as key milestones are met.
About Crux
The Crux field is located in Production Licence AC/L9 in the Browse Basin, offshore Western Australia and was acquired by Nexus in January 2006.
Nexus is operator of AC/L9 and holds 85% equity in the liquids resource with joint venture partner Osaka Gas holding the remaining 15%. Shell Development Australia holds the rights to 100% of the gas resource within the permit and under the current contract can access the gas in 2021. Average water depth is around 170 meters with the major Crux reservoir at 3,800 meters.
[mappress] Source:Nexus Energy , September 29, 2011