Nexen Inc.
TSX : NXY
NYSE : NXY

Nexen Inc.

July 28, 2009 10:19 ET

Nexen Increases Ownership in Canexus Through Distribution Reinvestment Plan

CALGARY, ALBERTA--(Marketwire - July 28, 2009) - Nexen Inc. announces that it has acquired ownership of an additional 6,855,875 exchangeable limited partnership units (exchangeable units) of Canexus Limited Partnership ("Canexus LP"), a subsidiary of Canexus Income Fund (the "Fund"). This would represent an additional 2.07% of the outstanding trust units of the Fund relative to Nexen's ownership as at December 15, 2008, if all of the exchangeable units outstanding were converted to trust units, for which the exchangeable units are exchangeable on a one-for-one basis. Nexen has acquired these additional exchangeable units over the past seven months through participation in Canexus LP and the Fund's Distribution Reinvestment Plan (the "DRIP").

Including the additional exchangeable units, Nexen now owns 63,493,414 exchangeable units which are exchangeable for 65.56% of the trust units of the Fund. On August 18, 2005, Nexen owned 52,285,714 exchangeable units, which were exchangeable for 63.5% of the outstanding trust units of the Fund at that time. On September 16, 2005, Nexen announced that the underwriters of the Fund's initial public offering had exercised a portion of their over-allotment option. The exercise of that option reduced Nexen's indirect ownership in the Fund to approximately 61.4%. On December 15, 2008, Nexen announced that it had acquired additional exchangeable units pursuant to the DRIP. The trust units of the Fund that are issuable upon exchange have been reserved for listing on the Toronto Stock Exchange.

The acquisition of exchangeable units was made by Nexen in accordance with its continued investment in the Fund and Nexen may acquire additional exchangeable units in the future pursuant to the terms of the DRIP. Nexen may in the future increase or decrease its holdings of exchangeable units as it may deem appropriate in light of the circumstances then existing.

This news release is being issued pursuant to securities legislation in each province of Canada and will be filed on the System for Electronic Document Analysis and Retrieval (SEDAR). The report required under National Instrument 62-103 will be filed on SEDAR under Canexus Income Fund's profile at www.sedar.com.

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We believe we are uniquely positioned for growth in the North Sea, Western Canada (including the Athabasca oil sands of Alberta and unconventional gas resource plays such as coalbed methane and shale gas), deep-water Gulf of Mexico, offshore West Africa and the Middle East. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity, governance and environmental protection.

Forward-Looking Statements

Certain statements in this report constitute "forward-looking statements" (within the meaning of the United States Private Securities Litigation Reform Act of 1995) or "forward-looking information" (within the meaning of applicable Canadian securities legislation). Such statements or information (together "forward-looking statements") are generally identifiable by the forward-looking terminology used such as "anticipate", "believe", "intend", "plan", "expect", "estimate", "budget", "outlook", "forecast" or other similar words and include statements relating to or associated with individual wells, regions or projects. Any statements as to possible future crude oil, natural gas or chemicals prices, future production levels, future cost recovery oil revenues from our Yemen operations, future capital expenditures and their allocation to exploration and development activities, future earnings, future asset dispositions, future sources of funding for our capital program, future debt levels, availability of committed credit facilities, possible commerciality, development plans or capacity expansions, future ability to execute dispositions of assets or businesses, future cash flows and their uses, future drilling of new wells, ultimate recoverability of current and long-term assets, ultimate recoverability of reserves or resources, expected finding and development costs, expected operating costs, future demand for chemicals products, estimates on a per share basis, sales, future expenditures and future allowances relating to environmental matters and dates by which certain areas will be developed, come on stream, or reach expected operating capacity and changes in any of the foregoing are forward-looking statements. Statements relating to "reserves" or "resources" are forward-looking statements, as they involve the implied assessment, based on estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future.

The forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such factors include, among others: market prices for oil and gas and chemicals products; our ability to explore, develop, produce, upgrade and transport crude oil and natural gas to markets; ultimate effectiveness of design modifications to facilities; the results of exploration and development drilling and related activities; volatility in energy trading markets; foreign-currency exchange rates; economic conditions in the countries and regions in which we carry on business; governmental actions including changes to taxes or royalties, changes in environmental and other laws and regulations; renegotiations of contracts; results of litigation, arbitration or regulatory proceedings; and political uncertainty, including actions by terrorists, insurgent or other groups, or other armed conflict, including conflict between states. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are interdependent, and management's future course of action would depend on our assessment of all information at that time.

Although we believe that the expectations conveyed by the forward-looking statements are reasonable based on information available to us on the date such forward-looking statements were made, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the statements contained herein, which are made as of the date hereof and, except as required by law, Nexen undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Readers should also refer to Items 1A and 7A in our 2008 Annual Report on Form 10-K for further discussion of the risk factors.

Contact Information

  • Michael J. Harris, CA
    Vice President, Investor Relations
    (403) 699-4688
    or
    Tim Chatten, P.Eng
    Analyst, Investor Relations
    (403) 699-4244
    or
    Nexen Inc.
    801 - 7th Ave SW
    Calgary, Alberta, Canada T2P 3P7
    Website: www.nexeninc.com