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Nexen Announces Resource Estimate for Appomattox in the Gulf of Mexico

Nexen logo In the first quarter of this year, Nexen made a significant discovery in the deep-water Gulf of Mexico at Appomattox, located in Mississippi Canyon blocks 391 and 392. Drilling activities resulted in an oil discovery with excellent reservoir quality following an exploration well and two appraisal sidetracks. Based on the results of this drilling, the estimate of recoverable contingent resource for this discovery exceeds 250 million barrels of oil equivalent with upside potential. Once drilling resumes in the Gulf of Mexico, the company plan to further appraise Appomattox.

Appomattox is the third discovery in the area following earlier discoveries at Shiloh and Vicksburg. Our drilling plans also include further appraisal at Vicksburg which is located six miles east of Appomattox and has the potential to be co-developed. We have a 25% interest in Vicksburg and a 20% interest in Appomattox and Shiloh. Shell Offshore Inc. operates all three discoveries.

Marvin Romanow, Nexen's President and CEO commented:

"We are excited with the results of the wells drilled to date and Appomattox has the potential to be our best discovery in the Gulf of Mexico so far. Once drilling resumes in the Gulf, we will continue appraisal of the field in order to determine ultimate reserves and move towards development plans which potentially include a new hub."

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. The company are focused on three growth strategies: oil sands and unconventional gas in Western Canada and conventional exploration and development primarily in the North Sea, offshore West Africa and deep-water Gulf of Mexico. We add value for shareholders through successful full-cycle oil and gas exploration and development, and leadership in ethics, integrity, governance and environmental stewardship.

Published 24/09/2010

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