Nexen Expects Acquisition by CNOOC to Close in Q4

On July 23, 2012, Nexen

entered into an Arrangement Agreement under which CNOOC Limited

proposes to acquire all of the outstanding common and preferred shares of Nexen for approximately US$15 billion in cash. On September 20, 2012, holders of Nexen's common and preferred shares approved the Plan of Arrangement, pursuant to the Arrangement Agreement. The closing of the arrangement remains subject to the receipt of required regulatory approvals and the satisfaction or waiver of the other customary closing conditions. We continue to expect the arrangement to close in the fourth quarter of 2012.