The Crux field lies in 190 metres of water in the Timor Sea approximately 700 km from Darwin and 600 km from Broome. Crux is 110km south-west of the producing Challis oil field. The Crux-1 well intersected a massive 240 metre gross gas column in high quality sandstone reservoirs. Two Drill Stem Tests (DST's) were conducted on the well with each zone flowing at rates in excess of 30 million standard cubic feet per day (mmscf/d). The gas is estimated to contain approximately 28 barrels of condensate in each million cubic feet of gas. Initial processing and interpretation of survey data indicates that the field contains a best estimate contingent condensate resource of 71 million barrels of condensate.

The Crux-2 well intersected a gross gas column of 158 meters yielding a net gas pay zone of 102 meters. The total gas column was significantly greater than pre-drill estimates due to the intersection of an additional 73 meters (22 meters net) of a younger formation with excellent reservoir properties. This gas bearing formation was not seen in the Crux-1 well. These results confirm the extension of the high quality reservoir sands seen in the Crux-1 well to the northeastern part of the field (as predicted from the similarity in seismic character at the sidetrack location) and increase confidence in the resource volumes.

In 2006, Nexus sold the rights to the gas (excluding condensate) in the Crux field to Shell for US$40 million (A$53 million). The agreement provides for Nexus to be able to execute its condensate recycle project until 31 December 2020 at which time Shell will take ownership of the permit and would be able to extract the gas and any remaining condensate.

Field development planning to date has concentrated on a gas recycling scheme producing approximately 600 mmscf/d of gas through two production wells and stripping about 17,000 barrels a day of condensate. The condensate would then be stored on a Floating Production Storage and Offtake (FPSO) facility, transferred to trading crude oil tankers and sold to refineries in the Asian region. The dry gas would be re-injected into the reservoir through three gas injection wells. In this way approximately 90% of the condensate in place, around 48 million barrels (bbls), could be recovered.

Front End Engineering and Design (FEED) of a gas condensate recycling project (Crux liquids project) is underway with Mustang Engineering. FEED for the liquids project is expected to be completed in January 2007 potentially enabling Nexus to be in a position to sanction the project by the end of Q2 2007 with first condensate being produced in the middle of 2009.