Nexen Inc.

Nexen Inc.

October 17, 2006 14:00 ET

Wind Power Project a First for Nexen

CALGARY, ALBERTA--(CCNMatthews - Oct. 17, 2006) - Nexen Inc. and GW Power Corporation today took their first steps toward alternative energy production with the official opening of their $113 million Soderglen wind farm.

The 70.5 megawatt wind power project, located southwest of Fort Macleod, is a 50-50 joint venture between Nexen and GW Power, the project developer and operator.

The wind farm began producing electricity in early September and, at full capacity, will produce enough green power to provide electricity for 25,000 homes. The project consists of 47 wind towers, each with a 1.5 megawatt turbine. The wind farm will produce enough clean energy to offset 95,000 tonnes of CO2 equivalent per year.

"This is an important step for Nexen," said Charlie Fischer, Nexen's President and CEO. "It's an innovative, environmentally-conscious way to add power to the Alberta power grid and it also helps us to manage our overall corporate CO2 emissions."

"The Government of Canada places great importance on renewable energy sources, including wind," said Mr. Ted Menzies, Member of Parliament for Macleod, on behalf of the Honourable Gary Lunn, Minister of Natural Resources Canada. "These sources will be increasingly important as we pursue a sustainable, environmentally friendly energy mix in Canada."

Wind power is a relatively inexpensive, reusable, reliable and environmentally-friendly form of energy. Alberta currently generates more electricity from wind farms than any other province in Canada.

"This is a great, environmentally-sound economic project that will give Albertans a green power alternative," said Warren Holmes, Executive Chairman, GW Power Corporation.

The Government of Canada will invest more than $20 million over ten years, through the Wind Power Production Incentive program, in the Soderglen Wind Farm.

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 oilsands 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.

GW Power Corporation is a private, Alberta-based company focused on the development, acquisition and management of environmentally responsible power projects in Canada.

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, 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, 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.

Contact Information

  • Nexen Inc.
    David Axford
    Vice President Power Marketing
    (403) 699-5446
    Grant Dreger, CA
    Manager, Investor Relations
    (403) 699-5273
    Nexen Inc.
    801 - 7th Avenue S.W.
    Calgary, Alberta, Canada T2P 3P7
    GW Power Corporation
    Kipp Horton
    Vice President, Operations
    (403) 262-8833
    GW Power Corporation
    300, 714-1 Street S.E.
    Calgary, Alberta, Canada T2G 2G8