Oil and gas producer Nexus Energy Limited (ASX:NXS) has inked a deal with Shell Development (Australia) Pty Ltd and Osaka Gas Crux Pty Ltd to development its Crux gas liquids resource off Western Australia.
The non-binding Head of Agreement will enable the companies to exclusively pursue a Shell-led integrated development to commercialise Crux.
One the agreement gains approvals and is finalised it will result in a new joint venture to consolidate the existing gas interests held by Shell with the liquids interests held by Nexus and Osaka Gas.
Nexus Chairman Michael Fowler says the agreement provides certainty for the future of Crux and will enable Nexus to focus on adding potential gas reserves to the Crux area.
Nexus Energy reported a net loss of $39 million in the 2011 financial year.