Nexen Establishes Floor Price Protection for 2007 Production
Nexen has purchased put options on approximately 38 million barrels of crude oil production in calendar year 2007. These options establish a WTI floor price of US$50 per barrel on these volumes.
"We view this transaction as providing inexpensive insurance," said Marvin Romanow, Nexen's Chief Financial Officer. "Next year, with the Buzzard development fully on-stream, we will have increased leverage to oil prices. These options provide a base level of price protection without limiting our upside in a sustained high price environment."
The put options were purchased for approximately US$24 million (US$0.63 per barrel).
Nexen Inc. is an independent, Canadian-based global energy
company, listed on the Toronto and New York stock exchanges
under the symbol NXY. We are uniquely positioned for growth
in the North Sea, deep-water Gulf of Mexico, the Athabasca
oil sands of Alberta, the Middle East and offshore West
Operates 2 Offshore Rigs
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