Nexen Inc."Drilling Results Expand Tammum Field in Yemen"

Source: www.gulfoilandgas.com 2/12/2004, Location: Middle East

In Yemen, on Block 51, the results of the recently drilled Tammum-8 delineation well have further extended the boundary of the field. Tammum-8 was drilled approximately two kilometers west of the Tammum-1 discovery well and encountered 24 feet of net pay.

The Tammum field is in the development stage. We have drilled 8 wells and are designing a central processing facility, a gathering system, and tieback to our Masila export system. Based on drilling results to date, we expect to develop in excess of 60 million barrels of proved plus probable reserves on Block 51, and add between 20,000 and 25,000 barrels per day of production capacity in early 2005. The field's additional potential is being assessed through the interpretation of a 3D seismic program and further planned delineation drilling in 2004. We also plan to continue to explore the Block, shooting additional seismic and drilling six exploration wells this year. We have an 87.5% working interest in Block 51.

"Development of Tammum will enable us to maintain our production rates in Yemen for several more years," expressed Fischer. "This production is some of the most profitable in our company."



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