Nexus said the high-resolution seismic data, expected for completion under budget later this month, would help refine the field development plan and fast-track its development. Detailed interpretation of the new data would also help find the best placement of appraisal and development wells.

Payment to Mogal comprised A$10 million cash and the issue of A$2 million Nexus shares. Funding of $7 million was provided via a debt facility secured from BOS International, a wholly owned subsidiary of Bank of Scotland

Nexus managing director Ian Tchacos said the settlement was exciting news for the company.

“The value potential of this project is large,” Tchacos said. “We are very keen to get on with our program.”

Tchacos said independent resource estimates for the field and development scheme translated to a value between $1.00 and $2.40 per Nexus share.

He also said the Crux field was one of two major projects to take Nexus from explorer to oil and gas producer in the near future. The other is the Longtom gas field in Victoria’s Gippsland basin for which Nexus recently signed a gas sales and processing agreement with Santos.

During the first half of this year, Nexus plans to drill a single appraisal well to confirm the extent of the hydrocarbon accumulation discovered by the Crux-1 well in 2001. This well will be suspended for future use as a production well, managing director Ian Tchacos said in an earlier report.

The Crux field, in the Timor Sea, about 600km north of Broome, contains an estimated 48 million barrels of recoverable condensate and 1.3 trillion cubic feet of gas. It will most likely be developed as a conventional gas-liquids recycle project, Nexus said.

Independent resource estimates have valued the Crux field, using the Nexus development scheme, between A$280 million and A$640 million.

Discovered in 2001, the field has a 240-metre gross condensate-rich gas column in high quality sandstone reservoirs, according to Nexus.