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UpstreamOnline: All systems go at Echuca Shoals

By Upstream staff
16 July 2007

Australia’s Nexus Energy has finalised the farm-in and joint venture agreements with Shell at the Echuca Shoals gas condensate discovery prior to the scheduled drilling of the Fossetmaker-1 well.

According to the farm-in agreement, Shell has made an upfront payment to Nexus of $5 million.

Shell will also fund the first $30 million of the Fossetmaker-1 well and has an option to fund the first $25 million of a second appraisal well in order to earn a 34% interest in the entire permit.

Following the conclusion of the farm-in , Nexus will retain a 66% interest in the permit.

The Echuca Shoals field is located in the WA-377-P permit in the Browse basin off Western Australia.

The permit is adjacent to the the large Ichthys gas condensate field, which is currently the focus of a proposed LNG development.

Drilling on Fossetmaker-1 is likely to begin in late August or early September.

The well will be drilled using the Shell-contracted Ocean Epoch drilling rig.

Nexus will remain the permit operator with Shell responsible for the drilling operations on Fossetmaker-1.

16 July 2007 02:59 GMT  | last updated: 16 July 2007 03:45 GMT

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