CALGARY, ALBERTA--(Marketwire - Sept. 5, 2008) - Nexen Inc. announced today that initial inspections of production facilities in the Gulf of Mexico indicate only minor damage as a result of Hurricane Gustav.

Prior to the hurricane, we were producing approximately 30,000 equivalent barrels per day in the Gulf and we expect to restore production over the coming days. Resumption of production from some facilities is dependant on a more complete assessment of potential damage and the ability of transportation infrastructure to accept the production.

"Safety and environmental protection are always our first concerns and we evacuated all personnel from the Gulf last weekend," said Charlie Fischer, Nexen's President and Chief Executive Officer. "We expect to have approximately two thirds of our production volumes back on-stream some time this weekend and anticipate being back to full rates by the end of next week."

We also suspended drilling operations at our Cote de Mer prospect. Drilling is expected to resume there shortly.

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, Western Canada (including the Athabasca oil sands of Alberta and unconventional gas resource plays such as coalbed methane and shale gas), deep-water Gulf of Mexico, offshore West Africa and the Middle East. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity, governance and environmental protection.

Forward-Looking Statements

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