Nexen Acquires Additional Interest in Aspen Project

Nexen Inc. has increased its interest in the Aspen Field, located in 3,150 feet of water on Green Canyon Block 243 in the Gulf of Mexico, from 20% to 60%.

Nexen acquired the additional interest from BP Exploration & Production Inc. in exchange for funding BP's share of developing early production from the field. Nexen currently estimates gross recoverable reserves associated with this development to be 40 million equivalent barrels on a proved basis and up to 70 million equivalent barrels on a total resource basis, with 15% of this volume being gas. Aspen has a potential of up to 150 million equivalent barrels that could be established with additional drilling.

The early production system estimated to cost US $194 million includes drilling, completing, and tying back two wells to a host platform. BP will continue to operate the project. The development drilling program is scheduled to commence in the second quarter of 2002, with first oil scheduled for the fourth quarter of 2002.

"This is a good opportunity for Nexen," said Charlie Fischer, Nexen's President and Chief Executive Officer. "We're acquiring additional interest in an asset that is core to our growth strategy, we're accelerating our operating capabilities in the deep-water Gulf of Mexico, and we're adding significant reserves and production at an attractive cost."


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