10-12-08 In 2009, Nexen plans to invest $ 2.6 bn in oil and gas projects and grow net production by approximately 10 %.

Highlights:
-- Production, net of royalties, to grow approximately 10 % compared to 2008 and range from 220,000 to 235,000 boepd (250,000 to 265,000 boepd before royalties).
-- Expected cash flow of between $ 2.3 and $ 2.9 bn assuming WTI averages between $ 50/bbl and $ 65/bbl.
-- Oil and gas capital investment plans of $ 2.6 bn.
-- Plan to drill eight exploration and six appraisal wells, testing approximately 750 mm boe of unrisked resource potential (240 mm boe, net to us).

Capital investment plans -- continued investment in our next generation of growth
In 2009, we plan to allocate our oil and gas capital investment as follows:
-- 34 % on our existing producing assets, including the fourth platform at Buzzard;
-- 31 % on major development projects. This allows us to progress Usan, offshore West Africa and bring Ettrick in the North Sea and Longhorn in the Gulf of Mexico on stream in 2009;
-- 27 % on advancing our Horn River shale gas play and on exploration and appraisal opportunities in our key regions-the North Sea, Gulf of Mexico and offshore West Africa; and
-- 8 % on early stage development projects expected to contribute future production and cash flow growth. These include future phases of oil sands in the Athabasca region.