Nexen's Scout Well a Duster

Nexen Inc. announced that drilling on its Scout exploration well on Green Canyon block 389 in the deep waters of the Gulf of Mexico has concluded.

The Scout well was drilled in 3,550 feet of water to a total vertical depth of 26,000 feet. The objective formations contained non-commercial quantities of hydrocarbons and the well has subsequently been plugged and abandoned. The well results are being reviewed to determine the remaining exploration potential on the acreage.

Nexen has a 25% interest in the Scout prospect and expects to record an after-tax charge of US $18 million for its share of the well costs in the third quarter of this year.

"Scout was one of a large number of high quality prospects in Nexen's global portfolio," said Charlie Fischer, Nexen's President and CEO. "Over the past two years, this portfolio has delivered two major discoveries in the deep waters of the Gulf of Mexico and discoveries in Colombia and Nigeria. We are opportunity rich and will drill another 25 to 30 high-potential prospects around the world by the end of 2002."