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Market: TSE:NXY
Sector: Energy
EPIC: NXY
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Nexen Inc.
www.nexeninc.com
Nexen is a Canadian-based, global energy company growing value responsibly. We are strategically positioned in some of the world's most exciting regions: the North Sea, deep-water Gulf of Mexico, Middle East, offshore West Africa and the Canadian Athabasca oil sands.
Full Nexen Inc. profile here
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Nexen and Shell make significant oil discovery at Appomattox, Gulf of Mexico

19th Mar 2010, 2:33 pm Nexen and Shell make significant oil discovery at Appomattox, Gulf of Mexico

Nexen (TSX: NXY) and its partner Royal Dutch Shell (LSE: RDSB) have made a significant oil discovery in the Eastern Gulf of Mexico at Appomattox, in Mississippi Canyon blocks 391 and 392.

At Appomattox, the partners drilled an exploratory well and two appraisal sidetracks, and the well results have exceeded pre-drill expectations. Shell is the operator of the project and it holds 80% interest, while Nexen owns the remaining 20%.

"The Appomattox discovery confirms our confidence in the play and provides a strong basis to evaluate the remainder of our significant acreage position in the Eastern Gulf of Mexico", Nexen President and CEO Marvin Romanow said. "We are looking forward to additional drilling at Appomattox to confirm the estimate of total resource and move the discoveries towards development".

The discovery well, located in 7,217 feet of water, was drilled to 25,077 feet true vertical depth and encountered approximately 530 feet gross of oil pay. The first appraisal sidetrack was drilled to approximately 25,950 feet (true vertical depth) and encountered approximately 380 feet oil pay, the second sidetrack was undertaken to further delineate the discovery.

Appomattox is the third discovery in the area, following discoveries at Shiloh and Vicksburg, in which Nexen owns 20% and 25% respectively. Through its subsidiary, Shell Offshore, Royal Dutch Shell operates all three projects.

The partners said that additional appraisal activities are planned for later in the year, and they are investigating development options for Appomattox and Vicksburg.

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