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Nexen Report Only Minor Damage From Hurricane Katrina

Nexen IncNexen Inc. announced today that initial inspections of Gulf of Mexico production facilities indicate only minor damage as a result of Hurricane Katrina.

"We were very fortunate," said Charlie Fischer, Nexen's President and Chief Executive Officer. "Safety and environmental protection are always our first concerns and we evacuated all personnel from the Gulf last weekend, shutting-in all of our 50,000 boe/d of production there. Production has since resumed at Gunnison and most of our fields in the Vermillion and Eugene Island areas. We expect to have approximately two thirds of our volume back on-stream some time this weekend and anticipate being back to full rates by the end of next week, provided third party transportation infrastructure is back on-stream and our more detailed facility inspections are favourable."

Drilling operations were suspended at Castleton, Knotty Head and Pathfinder. Drilling has resumed at Castleton and Knotty Head. The rig drilling Pathfinder and the rig contracted to drill Aspen-5 were damaged during the storm. These wells have been delayed.

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Posted 03/09/05

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