Nexen Hits Offshore Nigeria

Nexen has been successful offshore Nigeria with an oil discovery at Usan on Block OPL 222. The well was drilled to 8,940 feet in 2,450 feet of water approximately 60 miles off the coast of Nigeria, and contains several oil-bearing reservoirs. One zone was production tested and flowed at a restricted rate of 5,000 barrels of oil per day. A detailed evaluation of the Usan discovery is now being conducted and an appraisal well is expected to be drilled by the end of the year. OPL 222 also contains the previously announced Ukot discovery.

"We are very excited with these results," commented Charlie Fischer, CEO and President of Nexen. "This discovery is a significant step towards proceeding with a development project on the block." We have a 20% interest in the block which is operated by Elf Petroleum Nigeria Limited, a subsidiary of TotalFinaElf. Other partners are Esso Exploration & Production Nigeria (Offshore East) Limited and Chevron Petroleum Nigeria Ltd.