Nexen to Sell Canadian Heavy Oil Assets to Northern Blizzard

Canadian energy company Nexen plans to sell its heavy oil properties in Western Canada to Northern Blizzard Resources for $975m.

In December 2009, the properties had proven reserves of 39 million barrels of oil equivalent, an average production rate of 16,100boe per day from 750 net wells and generated $130m of cash flow in the last four quarters.

Nexen president and CEO Marvin Romanow said proceeds from the sale will be reinvested in its oil sands, shale gas investment programmes and conventional exploration.

The transaction is due to close by June 2010.

Nexen focuses on oil sands and unconventional gas in Western Canada onshore as well as conventional exploration and developments offshore.