Reserve Estimates Are In For Aspen Discovery

Nexen Inc. announces that the estimated reserves associated with its Aspen discovery, located on Green Canyon Block 243 in the deep waters of the Gulf of Mexico, total 150 million barrels of oil equivalent.

Exploratory wells drilled by the Ocean Victory semisubmersible rig in 3,150 feet of water confirmed 490 feet of net pay in the Aspen discovery. The discovery is located approximately five kilometers from the BP operated Troika field. There is other existing infrastructure in the area and fast track development plans for the field are currently being evaluated. Nexen has a 20% working interest in this discovery, which is operated by BP.

Nexen has interests in 14 exploration blocks in the vicinity of Aspen, with 100% interests in seven blocks, which were awarded following the Central Gulf of Mexico Sale 178 in April 2001. Nexen has identified a number of prospects and expects to drill at least two of these in the next year, in addition to developing Aspen.

"Aspen is our second major discovery in the deep waters of the Gulf of Mexico in less than a year," said Charlie Fischer, Nexen's Chief Operating Officer. "Both Aspen and Gunnison are moving rapidly towards the development phase. We expect significant production growth from the Gulf of Mexico over the next two years, bringing us closer to our target of 100,000 equivalent barrels per day from the Gulf by 2006."