Debt-laden Nexus Energy has confirmed media reports it has had takeover discussions with Seven Group Holdings, but says no agreement has been reached.
"Whilst the company has had discussions with SGH, no agreement has been concluded and no assurance can be given that a binding agreement will be reached," Nexus said in a statement.
Seven Group managing director and former Nexus chairman Don Voelte has recused himself from the discussions to avoid any potential conflict of interest in the negotiations.
Mr Voelte, the former chief executive of Woodside Petroleum, said in November last year that Seven Group was looking for opportunities in the oil and gas sector.
Nexus said it was also in ongoing discussions with its financiers Nomura and Merrill Lynch in relation to its approaching debt milestones under its senior debt facility.
The company's efforts to seek a white knight suitor or a buyer for its 15 per cent stake in the Crux gas-liquids field in the Browse Basin have so far failed to come to fruition.
Shares in Nexus remain suspended following the shutdown of its only cash-generating asset, the Longtom gas processing facility in Victoria.
Nexus shares last changed hands for 5.9 cents while Seven shares were off eight cents to $8.25.