Offshore staff

NEW ORLEANS -- Nexen has provided an update on its E&P activities in the deepwater Gulf of Mexico.

The company is evaluating its operated Ringo discovery in Mississippi Canyon block 546, which encountered approximately 150 ft of net gas pay. A single subsea well tieback to nearby facilities is being considered. First production is anticipated in early 2008. Estimated recoverable resources are between 60-170 bcfe. The company holds a 50% working interest in the field.

Nexen expects to complete the Wrigley gas discovery in Mississippi Canyon block 506 in early 2007.

Meanwhile, the company continues evaluation of the two-well exploration program on the Total-operated Gotcha field in Alaminos Canyon block 856. This block is adjacent to the Great White discovery in AC 857, which is planned to be produced through a spar. The company has a 30% working interest in the block.

At Knotty Head in Green Canyon block 512, the company is proceeding with facility and subsurface studies, and continues to work with its partners to find a rig to complete appraisal work on the field.

Nexen adds that it plans to continue its exploration program in the fourth quarter with at least one well in the GoM.

10/27/06