Under the deal, Nexus will retain operatorship of the permit and the right to all oil and condensate discovered until 2020. After this time, Shell can opt to earn the title of the permit and operatorship.

“We are very pleased to have concluded this transaction that was agreed in principle only two months ago,” Nexus managing director Ian Tchacos said.

“Shell and Nexus have worked together constructively to complete what is a landmark transaction that we consider to be a win-win for both companies.”

Tchacos said the funds from this transaction would allow his company to maintain its aggressive front-end engineering and appraisal program on the Crux Liquids project until the planned $53 million farm-in deal with an unnamed, multi-billion dollar international oil and gas company was concluded.

“In addition, this has freed up sufficient funding for Nexus to push forward aggressively with feasibility engineering and appraisal drilling on the Echuca Shoals gas condensate resource, which the company still holds at 100%,” Tchacos said.

Subject to securing a rig slot, Nexus expects to drill the Crux-2 appraisal well in the fourth quarter of this year.

Results from this well will be analysed in conjunction with those from the new 3D seismic data and front-end engineering and design work to confirm the commerciality of the project.