Shareholder Update - 21/12/11Crux commercialisation1. Nexus...

Shareholder Update - 21/12/11

Crux commercialisation
1. Nexus remains on track for a Final Investment Decision (FID) for the first quarter of 2012 (ON TRACK? WAS MEANT TO BE LAST YEAR?) and the timeline of first production in accordance with terms of the AC/L9 production licence (GETTING VERY TIGHT).

2. In addition, the Crux liquids project development planning process has progressed. This includes advancement towards an Early Contractor Involvement Agreement (Agreement) with a counterparty by the end of this year.
DID THIS HAPPEN?

3. The Agreement is the precursor to the award of an
Engineering Procurement Construction and Installation (EPCI) contract in respect of the delivery of an FPSO for the Crux liquids project.
DID THIS HAPPEN?

4. Nexus has received from Shell an offer for the Crux joint venture partners to extend the Crux liquids project handover option exercise date to the 31 March 2012 (previously 31 December 2011).
Shell's offer allows for the handover date to be extended from 31 December 2020 to 31 December 2023 at the election of the Crux joint venture partners by 31 March 2012.
SO WE EXPECT CRUX JV TO BE MADE 31st March 2012 NOW?

5. Longtom Gas Project
As presented at our recent AGM, the less than expected performance of producing wells Longtom -3 and Longtom -4 has led to an extensive review of the field to identify further development opportunities to satisfy Nexus’ obligation under the Gas Sales Agreement.
A full reserves audit is now due in March 2012.
WHAT WILL COME FIRST? LONGTOM REPORT (EEK) OR A CRUX DEAL?

5. Chief Executive Officer
Nexus is investing considerable resources to ensure a high quality appointment and the company remains confident of announcing a new Chief Executive Officer in the near future.
Michael Fowler said, “We are pleased with the level of interest received to date and the detailed process undertaken and both Ian Boserio and myself are confident that the process will conclude shortly"
SHORTLY? WHAT DOES THIS MANAGEMENT THINK SHORTLY MEANS?
BEFORE OR AFTER A CRUX DEAL?

Discussion welcomes peoples....