Nexen Approves Development of Ettrick Field

Nexen Inc. has approved a plan to develop the Ettrick field located on Blocks 20/2a and 20/3a in the United Kingdom (UK) sector of the North Sea subject to approval by the co-venturers and the UK government. The plan includes drilling three production wells tied back to a floating production, storage and offloading vessel.

Production from the field is expected to begin in early 2008, with Nexen's share reaching approximately 16,000 boe/d. Nexen's share of full-cycle development costs are estimated to be $460 million, with approximately $90 million invested in 2006. This amount was included in previously announced capital budget. Nexen is the operator of Ettrick with an 80% working interest. Other co-venturers include Bow Valley Energy Ltd. (TSX: BVX) (12%) and Atlantic Petroleum (FO: ATLA) (8%).

"This is a solid project that adds certainty to our production profile beyond 2007," said Charlie Fischer, Nexen's President and CEO. "The North Sea is important to our overall growth strategy and Ettrick is a stepping stone to growing a sustainable business in this area."

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Posted 23/02/06

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