03:48 PM EST - Nexen Inc. : has agreed to sell its heavy oil properties in Western Canada to Northern Blizzard Resources Inc. for approximately $975 million (before closing adjustments and costs). At December 31, 2009, the properties had proved reserves of 39 million boe. During the past four quarters, the properties produced an average of 16,100 boe/d from 750 net wells and generated $130 million of cash flow when WTI averaged $70.70 U.S. per barrel. The transaction is expected to close on June 30, 2010 and is subject to customary closing conditions. The sale will result in a significant reported gain of over $700 million. Following the sale, the company still expects to meet its original 2010 production guidance. Nexen Inc.
shares T.NXY are trading down $0.28 at $21.09.
