Nexus settles claim as Longtom concerns linger

Company News

by Lelde Smitts

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Nexus Energy Limited (ASX:NXS) has taken steps to settle a claim from Sedco Forex International as it continues to investigate issues at its Longtom offshore gas-processing facility.
 
The oil and gas explorer and producer says its securities will remain suspended as it considers the implications of a major outage which occurred at its only processing facility last month. 
 
Nexus has advised gas production from the Longtom-4 well recommenced yesterday but its Longtom-3 well is not producing and has no set target date for a return to production. 
 
The Melbourne-based company has also moved closer to settling a claim brought in the Federal court by Sedco in relation to an alleged breach of contract concerning the charter of a drilling rig.
 
Nexus has agreed to pay Sedco $US30 million with the settlement also conditional upon Nexus executing a binding asset or corporate sale transaction by April 2 and completing it by the end of August.  
 
Nexus Energy rebounded from a loss to a profit of $17.5 million in the 2013 financial year.