Nexus Energy Ltd. (NXS.AU) said Thursday that Royal Dutch Shell Plc (RDSB.LN) has granted it an option for a three-year extension of the gas rights handover for the Crux liquids project offshore Western Australia state to the end of 2023 from 2020.

Nexus said it will pay Shell an option fee of US$675,000 on execution, an exercise fee of US$34.3 million payable on a final investment decision before the end of 2011 and a 3.5% royalty payment for the life of the project.

"Whilst we still have a lot of work to do to bring Crux into production, the extension is necessary to allow sufficient time to recover the liquids and meet the conditions for financing," Nexus Chairman Michael Fowler said in a statement.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com
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