posted on another thread as fol:'Crux backgroundCrux is a...

posted on another thread as fol:

'Crux background
Crux is a condensate rich gas field owned 85% by NXS and 15% by Osaka Gas in the Browse basin. The company had a MoU to sell 25% for US$255m (A$290m at the time and equal to $11.6m per 1%) in September 2008, but the financial crisis caused the buyer to withdraw its offer. The deteriorating market conditions made another deal near
impossible. This caused NXS some financial stress as it had obligations with an expensive drilling rig, and ongoing capex on Longtom. The company has continued to negotiate a sell-down of its equity in Crux, but no
agreement has been reached yet. The equity raising of $74m and the commissioning of Longtom has given the company some breathing space and enables the company to negotiate from a stronger financial position. The recovery in the world economy and in credit markets will also be conducive to a better deal making environment.

The Crux gas field is a 2-3Tcf gas field with certified condensate reserves of 75m barrels. The project has some particular characteristics, namely:
�� The proposed development would strip out the liquids from the gas stream at a peak rate of 39,000bopd and the dry gas will be re-injected into the reservoir for a
possible later development by Shell.
�� NXS and Osaka Gas only have ownership rights to the liquids until 31 December 2020, when all the hydrocarbons (gas and liquids) become Shells property.

NOTE!!!�� However, if NXS and Osaka Gas decide not to develop a liquids stripping project and advise Shell accordingly, then they will retain ownership of the liquids in perpetuity NOTE! NOTE! NOTE! '

Shell is actively considering small LNG plants in Browse. such a JV with Shell satisfies the condition in the last para above AND IS MOST VALUABLE CRUX OUTCOME for nxs.the board with its links to Shell should be able to bring about this outcome.