price target $0.59 wilson htm (30/05/2011), page-3

Nexus Energy Limited
Crux is worth more to Shell than NXS
Issued by Wilson HTM Ltd ABN 68 010 529 665 - Australian Financial Services Licence No 238375, a participant of ASX Group and should be read in conjunction with the disclosures and
disclaimer in this report. Important disclosures regarding companies that are subject of this report and an explanation of recommendations can be found at the end of this document.
30 May 2011
$0.36
BUY
Recommendation
Shell Prelude Floating LNG project announced in mid-May has a 25 year project life but only ~15 years of reserves from the Prelude and Concerto fields. We calculate that Shell can generate ~$200-300m more value from purchasing NXS? interest in the Crux liquids than NXS can achieve from its standalone liquids project, providing scope for a negotiated outcome in advance of NXS? final investment decision timeframe. NXS remains a high risk speculative play with substantial upside. We retain our Buy recommendation and revise our price target to $0.59 /sh (prev. $0.61 /sh).