Nexen Prices Offering of 10-year and 30-year Senior Notes

Nexen priced and agreed to issue US$1.04 billion of 10 and 30-year senior notes under a shelf prospectus dated October 22, 2003, as amended December 16, 2003 and registered under the multi-jurisdictional disclosure system in Canada and the United States. The senior notes are being offered and sold in the United States only. Of the total US$1.04 billion, US$250 million mature on March 10, 2015 and were priced to yield 5.216% (5.20% coupon), and US$790 million mature on March 10, 2035 and were priced to yield 5.911% (5.875% coupon).

All proceeds from the senior notes will be used to repay a portion of the US$1.5 billion in bridge financing that was put in place for our UK North Sea acquisition. The notes will be unsecured and rank equally with Nexen's other senior unsecured debt.

Nexen's senior unsecured long-term debt is rated Baa2 (negative) by Moody's Investor Service, Inc., BBB (negative) by Dominion Bond Rating Service Limited and BBB- (stable) by Standard & Poor's Corporation. The underwriting syndicate is lead managed by Deutsche Bank Securities and Citigroup.