Nexen Inc.
TSX : NXY
NYSE : NXY

Nexen Inc.

June 01, 2006 17:00 ET

Nexen Announces Acquisition of UK Energy Marketing Business

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) - Nexen Inc. announced today that its wholly-owned subsidiary, Nexen Energy Marketing Europe Limited ("NEME") has completed the acquisition of Foundation Energy Limited for an undisclosed price. Foundation Energy was a privately held UK gas and power marketing company based in London. The company has an experienced team of marketers, traders and support personnel and is poised for future growth in the European marketplace. It will change its' name to Nexen Energy Marketing London Limited.

NEME was formed in 2005 following Nexen's acquisition of Buzzard and other UK North Sea assets in 2004. NEME is responsible for marketing all of the crude oil, gas and liquid products from our North Sea assets and will be managing total North Sea volumes of approximately 100,000 boe/d following the start-up of the Buzzard field later this year.

The acquisition of Foundation Energy will compliment NEME's existing marketing activities by enabling us to offer a wider range of energy marketing services to customers in both the UK and continental Europe.

On a global basis, Nexen markets over 500,000 bbls/d of crude oil and in excess of four bcf/d of natural gas. We serve a wide range of customers through our offices in Calgary, Houston, Denver, Detroit, Singapore and London. Our strategy is to provide outstanding customer service and assist in the management and optimization of storage and pipeline assets.

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 Africa. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity 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, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as "intend", "plan", "expect", "estimate", "budget", "outlook" or other similar words, and include statements relating to future production associated with our Long Lake, North Sea and West Africa projects.

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; the ability to explore, develop, produce and transport crude oil and natural gas to markets; the results of exploration and development drilling and related activities; foreign-currency exchange rates; economic conditions in the countries and regions where Nexen carries on business; actions by governmental authorities including increases in taxes, changes in environmental and other laws and regulations; renegotiations of contracts; results of litigation, arbitration or regulatory proceedings and political uncertainty, including actions by insurgent or other armed groups or other conflict. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are interdependent upon other factors, and management's course of action would depend on its assessment of the future considering all information then available. Any statements as to possible commerciality, development plans, capacity expansions, drilling of new wells, ultimate recoverability of reserves, future production rates, cash flows or ability to execute on the disposition of assets or businesses, and changes in any of the foregoing are forward-looking statements.

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. Readers should also refer to Items 7 and 7A in our 2005 Annual Report on Form 10-K for further discussion of the risk factors.

Contact Information

  • Nexen Energy Marketing Europe
    Doug Dreisinger
    Managing Director
    44 (0)1895 274 876
    or
    Nexen Inc.
    Grant Dreger, CA
    Manager, Investor Relations
    (403) 699-5273
    or
    801 - 7th Ave SW
    Calgary, Alberta, Canada T2P 3P7
    Website: www.nexeninc.com or www.nexenmarketing.com