Nexus signs NOA for semisubmersible

Nexus Energy Ltd. has signed a notice of award (NOA) with Sedco Forex International Inc. to secure the Transocean Legend semisubmersible for the Crux liquids project.

Offshore staff

MELBOURNE, Australia -- Nexus Energy Ltd. has signed a notice of award (NOA) with Sedco Forex International Inc. to secure the Transocean Legend semisubmersible for the Crux liquids project.

The rig is expected to begin operations on the Crux field between February and April 2009.

The NOA for theTransocean Legend includes a minimum duration of 260 days to drill five additional development wells and complete all eight wells planned for the Crux development. The proposed contract also will include optional drilling slots for additional appraisal, development or exploration wells around the Crux field, such as the Auriga-1 prospect.

The timing of the rig will enable well work to be completed before the FPSO installation activities, and the majority of drilling and completion operations will be undertaken outside of cyclone season.

In addition, letters of intent (LOI) have been signed with Cameron Australasian Proprietary Ltd. for the supply of eight subsea christmas trees, and with Wellstream International Ltd. for the supply of the flexible subsea flow lines. These follow an LOI that was signed in January 2008 with GE Oil & Gas for two re-injection compressors trains. These commitments total $308 million towards the Crux liquids project.

Nexus expects to award further major contracts for the FPSO turret mooring swivel system. Nexus and its partner Osaka Gas expect to deliver first production by the end of 2010.

06/27/2008

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