At a special meeting held recently, shareholders approved Nexen Inc. as the new corporate name of Canadian Occidental Petroleum Ltd. by an overwhelming majority of the shares voted.
Nexen's common share symbol on The Toronto Stock Exchange and the American Stock Exchange will become NXY effective November 10, 2000. On November 14, 2000 Nexen will move its US listing from the American to the New York Stock Exchange, where it will also trade under the symbol NXY.
In Yemen the Nexen operated Masila Block produced 214,600 barrels of oil per day during the third quarter compared to 208,500 barrels per day in 1999. A third drilling rig has been added on the Masila Block to increase well capacity to 230,000 barrels of oil per day.
Nexen is expanding the Masila production facilities, including the central processing facility, power generation and water handling facilities to provide additional production capability.
Canadian production averaged 71,600 barrels equivalent per day in the third quarter (excluding Syncrude) compared to 64,300 barrels equivalent per day in 1999.
Nexen will invest $129 million in the fourth quarter to complete development projects which will increase Canadian production to 77,000 barrels equivalent per day by year end (composed of 58,000 barrels of oil and 190 million cubic feet of natural gas).
These projects include the completion of a gas conservation project, and the drilling and tie-in of 70 shallow gas wells, 50 heavy oil wells and 25 conventional oil wells.
US production averaged 28,900 barrels equivalent per day in the third quarter compared to 29,500 barrels equivalent per day in 1999.
Nexen will complete development projects in the fourth quarter which will increase US production to 32,800 barrels equivalent per day by year-end (composed of 11,700 barrels of oil and 125 million cubic feet of natural gas).
These projects include drilling activity at Eugene Island 18, West Cameron 170, and Vermilion 321. Nexen will continue to delineate the Gunnison discovery, plus drill two other exploration wells, one on the shelf at Viosca Knoll and a deepwater prospect called Dendara.
Nexen is delineating the Gunnison discovery located in 3,150 feet of water in the Garden Banks area of the Gulf of Mexico. A third sidetrack appraisal well commenced drilling on September 27th, 2000 and is currently drilling ahead at a depth of 11,600 feet.
Another appraisal well will be drilled in the fourth quarter to help evaluate the full potential of the field.
Gunnison is a significant discovery with reserves currently estimated to be between 150 and 250 million barrels of oil. Nexen has a 30percent interest in Gunnison.
Nexen is building its prospect inventory in the Gunnison sub-basin and throughout the deep waters of the Gulf of Mexico, and it currently stands at 100 blocks. In the August central sale, Nexen was awarded 21 deepwater blocks, 12 in the greater Gunnison Area.
© 2000 Mena Report (www.menareport.com)