Nexus Energy Shares Surge on Speculation Partner for Crux Found...

Nexus Energy Shares Surge on Speculation Partner for Crux Found
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By Shani Raja

Aug. 14 (Bloomberg) -- Nexus Energy Ltd., an Australian oil company seeking to fund projects, jumped the most in more than two months in Sydney amid speculation it’s close to finding a partner for its Crux venture as the global economy improves.

Nexus rallied as much as 16 percent on the Australian stock exchange and was 13 percent higher at 39 Australian cents at 2:12 p.m. The benchmark S&P/ASX 200 Index gained 0.5 percent.

Nexus shares have shed about half their value since October, when the company hired Deutsche Bank AG to manage the sale of a stake in Crux, a project off Australia’s northern coast to produce condensates, a type of light oil. Mitsui & Co. earlier scrapped a plan to buy an interest for $255 million.

“There’s speculation a deal is being done on the Crux asset,” said Scott Simpson, a Perth-based analyst at Patersons Securities Ltd. “We’re seeing confidence returning to the market and more money being invested in oil and gas assets, and Crux is a very valuable asset.”

Jodie Phillips, a Melbourne-based spokeswoman for Nexus, couldn’t immediately be reached for comment.

To contact the reporter on this story: Shani Raja in Sydney at [email protected]

Last Updated: August 14, 2009 00:31 EDT