I have come the conclusion that part of the reason for the delay...

I have come the conclusion that part of the reason for the delay in the NXS funding options decision is being influenced by the waiting for Shells decision on a FLNG in the Browse.
I believe the Nexus alliance with Shell is the one sure way of achieving maximum value for Shareholders; no doubt by now NXS could have sold Crux, but at an unacceptable value.
The reality is that with Shells backing, one way or another, we have drilled 3 wells finished as producers, at Crux2, 3 & 4; add Libra-1 makes 4 wells.
I expect shell will be the Party to the conditional offer for an asset sale that may formally be agreed to within 2 weeks.
My guess the Sale will fund Auriga and Caelum. Its in Shells interest as well to keep up the exploration of the probable 1 TCF Auriga Prospect, the gas is 100% Shells.
The following snippets indicates NXS is looking towards a combined Gas & liquids project.

From the 2-12-08 Bloomberg Release … (selective);
“The potential for LNG will start to look quite compelling” if resources are found, Tchacos said in an interview in LONDON. “It’s such an excellent reservoir and the gas is a very high quality.
(and)
“THERE IS A POTENTIAL COMPROMISE, WHERE WE’LL ALLOW SHELL TO COME EARLIER” to tap the reserves, he said. The partners need to find a way of COMBINING THE PROJECTS to produce liquids and allow Shell to take the gas earlier, he said.
Nexus, Shell, Mitsui, Osaka Gas and a further possible partner may decide in the middle of 2009 to build a floating LNG plant at the deposit.

18-3-09 Nexus Market Update ….
..Nexus is negotiating to secure funding for the drilling of the Auriga structure, located within AC/L9, commencing late May 2009. The structure is estimated to contain a most likely recoverable resource of around 42 MMbbl and is within tie-back range of the Crux field. The prospectivitiy of Auriga has been enhanced following the successful Libra discovery in the adjacent AC/P41 exploration permit. Nexus expects that if Auriga is successful, its inclusion in the Crux development would significantly improve recoverable reserves and therefore project economics as the cost of extracting the extra condensate will be minimal.
Success at Auriga will also significantly increase the gas resources in the Crux area, thereby enhancing the potential to recover the LIQUIDS IN CONJUNCTION with an LNG development at a later date. Further gas and liquids potential also exists in the adjacent Caelum structure.

(30-4-09) March 2009 1/4ly Report, page 2

..In addition Nexus has commenced consideration of alternative options available to it under its existing contractual arrangements. The terms of the arrangements with Shell with respect to Shell's rights to gas in the AC/P23 permit (now AC/L9), include provisions for the circumstance should the liquids joint-venture (Nexus 85%, Osaka Gas Crux Pty Ltd (a subsidiary of Osaka Gas Co., Ltd.) (“Osaka Gas”) 15%) unanimously decide not to progress with the extraction of the liquids recoverable through a liquids stripping project, and notify Shell of the same prior to 31 December 2020. These provisions include the ability for Nexus and Osaka Gas, upon transfer of the AC/L9 licence to Shell (with the above mentioned notification triggering earlier access for Shell to the permit, at its option) would retain various contractual rights to participate in the production of any future liquid hydrocarbons in a future gas commercialisation project initiated by Shell until the end of the project life (and the January 2021 cut-off would not apply to such contractual rights).
These contractual arrangements de-facto create a “floor valuation” to the recoverable liquids contained within the AC/L9 licence and therefore to Nexus’ interest in the same. This approach also exposes Nexus to a much larger reserves base given it will retain contractual rights in any liquids from further appraisal and future gas discoveries in the event a gas commercialisation project is initiated by Shell. Furthermore given Nexus’ funding constraints and the general Nexus Energy Limited
30 April 2009 Page 3 of 4



Regards ...SharpE