Nexen Inc.

Nexen Inc.

March 27, 2007 17:00 ET

Nexen Proposes Two-for-One Share Split

CALGARY, ALBERTA--(CCNMatthews - March 27, 2007) - Nexen Inc. announced plans to implement a two-for-one division, or "share split" of Nexen's issued and outstanding common shares. The decision, which was approved by Nexen's Board on February 15, 2007, is subject to shareholder and regulatory approval.

"Since our last share split in May 2005, our share price has more than doubled," said Charlie Fischer, Nexen's President and Chief Executive Officer. "With Buzzard on stream and Long Lake nearing completion, we are entering a period of significant growth and are optimistic about the future of our company."

Shareholder approval will be sought at our annual general and special meeting of shareholders scheduled for April 26, 2007 in Calgary, Alberta. Subject to receipt of all approvals, we expect to mail on May 15, 2007 (Mailing Date) the additional share certificates resulting from the share split to shareholders of record as of the close of business on May 10, 2007 (Record Date). Following the share split, we will have approximately 525 million common shares outstanding.

Under Toronto Stock Exchange rules, our common shares will commence trading on a divided basis at the opening of business on May 8, 2007, the second trading day preceding the Record Date. Under New York Stock Exchange rules, our common shares will begin trading on a divided basis on May 16, 2007, one business day following the Mailing Date.

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, Aspen, Long Lake, Syncrude, North Sea, West Africa 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 conflict, 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 7 and 7A in our 2005 Annual Report on Form 10-K for further discussion of the risk factors.

In this press release, we refer to oil and gas in common units called barrel of oil equivalent (boe). A boe is derived by converting six thousand cubic feet of gas to one barrel of oil (6mcf:1bbl). This conversion may be misleading, particularly if used in isolation, since the 6mcf:1bbl ratio is based on an energy equivalency at the burner tip and does not represent the value equivalency at the well head.

Contact Information

  • Michael J. Harris, CA
    Vice President, Investor Relations
    (403) 699-4688
    Lavonne Zdunich, CA
    Analyst, Investor Relations
    (403) 699-5821
    Nexen Inc.
    801 - 7th Ave SW
    Calgary, Alberta, Canada T2P 3P7