Nexen Sees Strong Flow at Hobby, Plans Additional Drilling

Nexen announces that it has made a discovery in the UK North Sea at Hobby located on Block 20/1N, approximately 1.5 kilometers west of the operated Golden Eagle discovery. The well encountered a significant oil column which was drill-stem tested and flowed at an average restricted rate of 5,500 bopd through a 56/64 inch choke. The well was drilled by the Transocean Prospect semisub. Early analysis indicates high quality crude oil in good quality reservoir sands. Nexen is planning to drill multiple sidetracks to determine the extent of this discovery. Hobby is part of the growing Golden Eagle area, which includes other exciting discoveries at Golden Eagle and Pink.

Nexen has a 34% interest in both Hobby and Golden Eagle, 46% interest in Pink and operate all three. The company has identified additional drilling opportunities in the area and have plans for further offset exploratory and appraisal drilling this year.

"We are very excited about the number of discoveries we are making in the Golden Eagle area just north of our world-class Buzzard asset," commented Marvin Romanow, Nexen's President and Chief Executive Officer. "The development of these discoveries is economic at current commodity prices and will allow us to continue growing our production in the North Sea."

Hobby Discovery

Announced on Feb. 12, 2009, the Hobby discovery well was drilled by the Transocean Prospect semisub. Partners on the 20/1N block include Maersk Oil (36%), PetroCanada (25%) and Edinburgh Oil & Gas (5%)

Golden Eagle

In the first quarter of 2007, the Golden Eagle discovery well was drilled to a depth of approximately 7,500 feet and encountered 123 feet of net pay. A successful sidetrack well was drilled to appraise the accumulation, and Nexen is currently evaluating development options. The current estimate of gross resource for the field is between 20 and 50 mmboe.


In the fourth quarter of 2008, Nexen drilled a discovery at Pink that encountered 57 feet of net oil pay. This discovery was followed up with a sidetrack delineation well that encountered 134 feet of net oil pay. These results are encouraging and consistent with pre-drill estimates. Pink is a candidate for co-development with Golden Eagle where Nexen is currently reviewing development options.

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