Nexen Completes UK North Sea Acquisition for US$2.1 Billion

Nexen has completed the acquisition of EnCana Corporation's UK subsidiary, EnCana (U.K.) Limited, for US$2.1 billion. This acquisition includes EnCana's interests in the world- class Buzzard discovery, along with the Scott and Telford producing fields, plus other satellite discoveries, and interests in exploratory blocks totalling approximately 740,000 net undeveloped acres. We also gain a proven UK management and technical team with an excellent track record.

"This acquisition firmly establishes us as a significant player in the North Sea, with current production, high quality operated infrastructure and built in growth from the Buzzard development," commented Charlie Fischer, Nexen's President and Chief Executive Officer.