Nexen Provides Update on Knotty Head Well in Gulf of Mexico

Nexen Inc.

Nexen Petroleum reports that the Knotty Head well has encountered more than 300 feet of apparent hydrocarbon pay in a secondary objective based on measured-while-drilling logs. The well is currently at 29,670 feet and has yet to penetrate the primary objective in the lower Miocene section. The well is planned for a total depth of 32,500 feet.

Nexen Petroleum U.S.A. is the operator of Green Canyon Block 512 where the Knotty Head prospect is currently being drilled by Unocal Corp., which is operating the initial exploration well.

Nexen has a 25% working interest in Knotty Head. Co-owners include Unocal Corp. (25%), BHP Billiton (25%) and Anadarko Petroleum Corporation (25%).


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