Nexen Inc. announced today that media reports regarding the break up or sale of parts of the company are incorrect.
"We are not being pressed to sell or break out parts of our business and we have not received any letters to that effect," said Charlie Fischer, Nexen's President and CEO. "I was surprised to read reports in the media that a campaign is underway to break up the company as I would have expected we would be among the first to know."
"Reports that our stock price does not reflect the value of our underlying assets are not news. We have frequently advised our shareholders and the investment community that the full value of our assets is not being recognized by the market and we have disclosed our plans to unlock that value," continued Fischer.
Our Long Lake oilsands project is scheduled to commence mid-year and production of premium synthetic crude at a significant cost advantage to competing technologies will ramp-up over a 12 to 18 month period after initial start-up of the upgrader. Our Buzzard project in the UK North Sea is world class. We are focused on maintaining the improved reliability and higher production rates we have recently achieved at Buzzard. In the Gulf of Mexico, we have built value with an enviable resource base and we plan to create additional value this year through our deep-water exploration program. Offshore West Africa, the development of our exciting Usan discovery is progressing well towards formal sanctioning in the near future. In addition, we have no fixed price hedges or caps in place allowing us to benefit fully from high commodity prices.
"We expect to grow our net production by between 8% and 10% this year," said Fischer. "We delivered significant production growth and value for our shareholders last year, but we fell short of expectations largely as a result of delays in the ramp-up of Buzzard and in the start-up of Long Lake. While it is not unique in today's environment for the completion of some of our major development projects to take longer than expected, the significant value that these projects will deliver to our shareholders has not changed."
Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, deep-water Gulf of Mexico, the Athabasca oil sands of Alberta, the Middle East and offshore West Africa. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity and environmental protection.
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