Opportunity Knocks
In 2012, approximately 20% of our 2012 capital investment program is expected to be spent on an exploration and appraisal program that spans six countries. In the Gulf of Mexico, we are evaluating development concepts and scenarios that could result in project development sanction in 2014 for Appomattox, a deepwater field estimated to contain (net to Nexen) 65 mmboe of probable reserves of light oil and approximately 50 mmboe (ranging from 25 to 90 mmboe) of contingent recoverable resources of light oil.1 We also expect results from high impact deepwater exploration wells in the Gulf of Mexico, offshore West Africa and the UK North Sea.
This year, we will also test significant unconventional exploration opportunities involving tight oil and gas in Poland, shale gas in Colombia and tight oil in Canada.
Exploration & Appraisal Plan for 2012 (number of wells)
Did You Know?
We’ve achieved a commercial exploration rate of 28% over 2007-2011, which enables us to be ranked in the top 20% of oil and gas explorers worldwide. We’re also outperforming industry in terms of keeping exploration costs low; our discovery costs are currently averaging about US $2 per barrel, compared to the industry average of about US $10 per barrel.
Global Exploration's Plans for 2012
Kevin McLachlan, Vice President, Global Exploration: “Strategic exploration is critical to any successful energy company — you have to discover oil and gas first before you can develop and produce it.”
1 For more information about resources and reserves see our legal notice.