Nexen Inc.
TSX : NXY
NYSE : NXY

Nexen Inc.

May 01, 2007 21:03 ET

Nexen Prices Offering of US$1.5 Billion of 10-year and 30-year Senior Notes

CALGARY, ALBERTA--(CCNMatthews - May 1, 2007) - Nexen Inc. today priced and agreed to issue US$1.5 billion of senior notes. This consists of US$1.25 billion principal amount of 6.40% senior notes due May 15, 2037 and US$250 million principal amount of 5.65% senior notes due May 15, 2017. The 6.40% senior notes were sold at a price of 99.56% per note to yield 6.433% to maturity. The 5.65% senior notes were sold at a price of 99.68% per note to yield 5.692% to maturity.

Substantially all of the net proceeds from the offering of the senior notes will be used to repay outstanding bank debt, with the remainder to be used for general corporate purposes. The notes will be unsecured and rank equally with Nexen's other senior unsecured debt. The underwriting syndicate is lead managed by Banc of America Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.

The notes will be issued under Nexen's shelf prospectus dated May 31, 2005.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. A copy of the prospectus supplement relating to these securities may be obtained from: Nexen Inc. 801 - 7th Ave S.W., Calgary, Alberta, Canada T2P 3P7.

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 coalbed methane, Long Lake, Syncrude, North Sea, Gulf of Mexico, West Africa projects and other 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 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 groups, including conflict between states. 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 future 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 asset dispositions, future sources of funding for our capital program, future debt levels, future cash flows, future drilling of new wells, ultimate recoverability of reserves, expected finding and development costs, expected operating costs, future demand for chemicals products, future expenditures and future allowances relating to environmental matters and dates by which certain areas will be developed or will come on stream, 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 1A and 7A in our 2006 Annual Report on Form 10-K for further discussion of the risk factors.

Contact Information

  • Lavonne Zdunich, CA
    Analyst, Investor Relations
    (403) 699-5821
    or
    Sean Noe, P.Eng
    Analyst, Investor Relations
    (403) 699-4494
    or
    Nexen Inc.
    801 - 7th Ave SW
    Calgary, Alberta, Canada T2P 3P7
    Website: www.nexeninc.com