With the evaluation of the recent drilling success on the northeast fault block of the Appomattox structure in the Gulf of Mexcio, the contingent recoverable resource was estimated to be about 215 million barrels of oil equivalent (MMboe) with a range of 120 to 370 MMboe, according to Nexen Inc. and Shell.

Future planned appraisal drilling is expected to further refine this range.  Nexen and operator Shell plan to conduct additional exploration and appraisal activity in the Appomattox area during 2012, extending into 2013. Nexen is currently drilling an appraisal well in the south fault block to further define the existing resource.

From that well, the company plans to sidetrack into the northwest fault block to test another major part of the Appomattox structure. Following this, Nexen expects to drill an exploration well on a structure located between Appomattox and Vicksburg, and a subsequent sidetrack to further appraise the northeast fault-block discovery.

Concurrent with the appraisal program, the companies are evaluating development concepts and scenarios that could result in project development sanction in 2014. The current discovered resource has hub potential with production capacity of more than 100,000 boe per day.

Nexen holds a 20% interest in Appomattox and a 25% interest in Vicksburg and various other blocks in the area. Shell Gulf of Mexico Inc. holds the remaining interest in Appomattox.