The cash will buy Shell a 13.6% interest in Nexus’s Block WA-377-P. Shell has also committed to provide funding of $30 million for the next appraisal well at Echuca Shoals to earn a further 20.4% interest.
Nexus will retain 66% interest in the permit and be the operator.
Nexus has agreed to deal exclusively with Shell until 5 December 2006, allowing six weeks to agree and execute a farm-in agreement and joint operating agreement.
The
