Nexus said the work program for the AC/P41 permit it won in conjunction with Shell includes geological studies, exploration drilling and acquisition of 3D seismic data.

AC/P41, covers about 1900 square kilometres and surrounds Nexus’ Crux gas condensate field. It is 200km off the Kimberley coast of Western Australia in the northern Browse Basin.

Nexus said each company will hold 50% equity in the new permit, which will be operated by Shell.

The Melbourne-based company said the recently acquired Crucis 3D seismic survey includes both the AC/P23 permit, containing the Crux field, and an area to the south now included in the AC/P41 permit. It will cover a total area of 280sq.km.

“The Crucis 3D seismic data indicates additional appraisal potential associated with the Crux structure along an identified horst block mapped by Nexus to extend into the AC/P41 permit,” it said.

Nexus said it had also identified additional near-field exploration potential.

The company has begun appraisal of the main part of the Crux field defined by the Crux-1 discovery well and recently drilled the Crux-2 well to test the northern extension of the field, intersecting 27m of net gas sand.

It is currently drilling the Crux-2 ST1 well (sidetrack well) to provide another control point, which if successful, will be cased as a future development well.

“The Crux field holds considerable potential for both a liquids project, and potentially an LNG development,” managing director Ian Tchacos said.

“The addition of a new permit in joint venture with Shell indicates both companies’ confidence in the potential of the Crux gas field and offers Nexus greater exposure to the broader Crux structure and significant additional potential for new discoveries in the vicinity.”

He said the new permit will form part of a “wider relationship” for gas commercialisation in the Browse Basin incorporating the Echuca Shoals gas field in which Nexus recently farmed-out 34% to Shell.