Nexen finds more resources in North Sea

Thu Sep 3, 2009 7:42am EDT
 
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(Reuters) - Nexen Inc on Thursday said it discovered substantial additional resources in the Golden Eagle area, making it a significant development in the UK North Sea for the company since the Buzzard oilfield.

The Golden Eagle area includes Nexen's 34 percent operated interest in both the Golden Eagle and Hobby discoveries, and 46 percent operated interest in the Pink discovery.

Nexen, Canada's No. 4 independent oil explorer, said in a statement the Golden Eagle area contains between 150 and 275 million barrels of oil equivalent (boe) of gross recoverable contingent resource.

The company said a recently completed development well will be tied into the Scott platform and expects it to add incremental production of about 10,000 to 15,000 boe/d by the year end.

At Buzzard, Nexen said a four week shutdown is underway and that it expects to have production back on stream by mid-September.

Nexen shares, which have lost more than 25 percent of their value in the past three months, closed Wednesday at C$20.95 on the Toronto Stock Exchange.

(Reporting by Krishna Chaithanya in Bangalore; Editing by Unnikrishnan Nair)