Nexen Announces 30-day Extension of the Arrangement Agreement Outside Date

  Nexen Announces 30-day Extension of the Arrangement Agreement Outside Date

  PR Newswire

  CALGARY, Alberta, January 27, 2013

CALGARY, Alberta, January 27, 2013 /PRNewswire/ --

Nexen Inc. ("Nexen") (TSX, NYSE: NXY) announced today that CNOOC Limited and
Nexen Inc. have mutually agreed to extend the "Outside Date" of the
Arrangement Agreement by 30 days to March 2, 2013.

The Outside Date was originally January 31, 2013. Either party may, except in
certain circumstances, extend the Outside Date from time to time if the
required regulatory approvals have not been obtained, provided that in
aggregate such extensions shall not exceed 75 business days from January 31,

In connection with the extension, Nexen also announced that it will postpone
the release of its 2012 fourth quarter and annual operating and financial

Completion of the Agreement remains subject to the receipt of United States
regulatory approval and the satisfaction or waiver of other customary closing
conditions. Key regulatory approvals have been received from Canada, the
United Kingdom, the European Union and the People's Republic of China.

About Nexen

Nexen Inc. is a Canadian-based global energy company, listed on the Toronto
and New York stock exchanges under the symbol NXY. Nexen is focused on three
growth strategies: oil sands and shale gas in western Canada and conventional
exploration and development primarily in the North Sea, offshore West Africa
and deepwater Gulf of Mexico. Nexen adds value for shareholders through
successful full-cycle oil and gas exploration and development, and leadership
in ethics, integrity, governance and environmental stewardship.

Forward-Looking Statements

Certain statements in this Release constitute "forward-looking statements"
(within the meaning of the United States Private Securities Litigation Reform
Act of 1995, as amended) or "forward-looking information" (within the meaning
of applicable Canadian securities legislation). Such statements or information
(together "forward-looking statements") are generally identifiable by the
forward-looking terminology used such as "anticipate", "believe", "intend",
"plan", "expect", "estimate", "budget", "outlook", "forecast" or other similar
words. Any statements as to possible timing and anticipated receipt of
required regulatory approvals for the arrangement with CNOOC Limited; the
ability of the parties to satisfy the conditions to, and to complete, the
transaction; the anticipated timing of the closing of the transaction; and,
changes in any of the foregoing are forward-looking statements.

All of the forward-looking statements in this Release are qualified by the
assumptions that are stated or inherent in such forward-looking statements.
Although we believe that these assumptions are reasonable based on the
information available to us on the date such assumptions were made, this list
is not exhaustive of the factors that may affect any of the forward-looking
statements and the reader should not place an undue reliance on these
assumptions and such forward-looking statements. Nexen undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws. The key
assumptions that have been made in connection with the forward-looking
statements include the following: the ability of the parties to the July 23,
2012 Arrangement Agreement to receive, in a timely manner and on satisfactory
terms, the necessary regulatory, and other third party approvals, including
but not limited to the receipt of applicable foreign investment approval
required in the United States  and the required approvals from other foreign
jurisdictions; and, the ability of the parties to the Arrangement Agreement to
satisfy, in a timely manner, the conditions to the closing of the transaction.

Forward-looking statements are subject to known and unknown risks and
uncertainties and other factors, many of which are beyond our control and each
of which contributes to the possibility that our forward-looking statements
will not occur or that actual results and achievements may differ materially
from those expressed or implied by such statements. Such factors include,
among others: the possible failure of Nexen and CNOOC Limited to obtain
necessary regulatory and other third party approvals, including those noted
above, or to otherwise satisfy the conditions to the completion of the
transaction, in a timely manner or at all; if the transaction is not completed
and Nexen continues as an independent entity, there are risks that the
announcement of the transaction and the dedication of substantial resources of
Nexen to the completion of the transaction could have an impact on Nexen's
current business relationships (including with future and prospective
employees, customers, distributors, suppliers and partners) and could have a
material adverse effect on the current and future operations, financial
condition and prospects of Nexen; the possible failure of Nexen to comply with
the terms of the Arrangement Agreement may result in Nexen being required to
pay a fee to CNOOC Limited, the  result of which could have a material
adverse effect on Nexen's financial position and results of operations and its
ability to fund growth prospects and current operations; and other factors,
many of which are beyond our control. Additional information on these and
other factors that could affect the completion of the transaction are included
in the information circular and proxy statement of Nexen dated August 16,
2012, which has been filed with the applicable securities regulatory
authorities and may be accessed through the SEDAR website ( ), the SEC's website ( ) and Nexen's
website ( ) .The impact of any one risk, uncertainty
or factor on a particular forward-looking statement is not determinable with
certainty as these factors are interdependent, and management's future course
of action would depend on our assessment of all information at that time.

For further information: For investor relations inquiries, please contact:
Janet Craig Vice President, Investor Relations +1-(403)-699-4230 For media and
general inquiries, please contact: Pierre Alvarez  Vice President, Corporate
Relations +1-(403)-699-5202 801 - 7 ^th Ave SWCalgary, Alberta, Canada T2P 3P7
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