Nexus Energy subject to takeover speculation

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According to The Australian, Nexus Energy Ltd (ASX:NXS) is subject to a $480 million takeover bid, with Royal Dutch Shell preparing to approach the company. While the paper says both parties declined to comment, Royal Dutch Shell already owns rights to the gas in Nexus’s largest asset, the Crux field in Western Australia. Nexus is under pressure to begin production at the Crux field, as Shell is entitled to any remaining gas and condensate from 2021. In addition, the production licence for the project currently requires the title holder to commence operations on or before February 2014. On Friday Nexus’s quarterly report revealed that funding for the Crux development is facing challenges with potential funders requiring an extension of the handover date. Nexus Energy reported a $50.42 million loss for year ending 30 June 2009.

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