Nexen Completes Acquisition of Aspen Field

Nexen has acquired the residual 40% interest in the Aspen field and the remaining interests in five exploration blocks in the greater Aspen area from BP Exploration and Production Inc. for US $136 million. Aspen is located in 3,150 feet of water on Green Canyon Block 243. This acquisition increases our interest in Aspen to 100%, and increases our exploration acreage in the greater Aspen area to over 80,000 net acres. The acquisition has an effective date of January 1, 2003.

The Aspen field came on-stream in December 2002. Current field production is approximately 29,000 equivalent barrels per day, of which 15% is natural gas. Production from Aspen is processed at the Bullwinkle facility, where we have incremental available capacity.

This acquisition increases our share of field production by 11,600 equivalent barrels per day. To solidify our return, we have sold approximately 60% of this incremental production forward for the next 12 months at a weighted average price of US $29.50 per equivalent barrel. Our cash netback on these hedged volumes, after processing and operating costs is approximately US $23 per equivalent barrel.

"We've achieved our goal of becoming a deep-water operator," said Charlie Fischer, President and CEO. "This a significant milestone in our Gulf of Mexico growth strategy. With our strong exploration acreage position, we can now control the timing of future exploration and development activities within the greater Aspen area."


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