As a Nexen shareholder, you benefit from appreciation in the value of our common shares and from dividend payments.

Nexen Stock
Our common shares are listed on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol NXY.

Two-for-one Share Split
Shareholders approved a two-for-one share split at the Annual General and Special Meeting held on April 26, 2007. Common shares will begin trading on a divided basis on May 8, 2007 on the TSX and on May 16, 2007 on the NYSE.

Normal Course Issuer Bid
The Toronto Stock Exchange (TSX) approved our Normal Course Issuer Bid in mid 2008. This Normal Course Issuer Bid allows us to repurchase for cancellation up to 10% of our public float of common shares from August 6, 2008 to August 5, 2009. 10% of our public float amounts to approximately 53 million common shares.

Dividends
The Board of Directors has declared an increase in the quarterly dividend to $0.05 per common share payable July 1, 2008, to shareholders of record on June 10, 2008. This doubled the dividend from the previous rate. Dividends are declared in conjunction with our quarterly earnings release and payable the first day of the quarter following the date declared.

Eligible Dividends for Canadian Tax Purposes:
Shareholders are advised that unless otherwise indicated in writing or on this website at or before the time a dividend is paid, dividends paid in 2006 and subsequent years are designated as eligible dividends.

If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.

1099-DIV Information Reporting for United States Tax Purposes:
Commencing May 6, 2003, Qualified Dividends paid by a Qualified Foreign Corporation became subject to US income tax at the same 5% or 15% maximum rates that apply to net capital gains.

Nexen Inc. is a Qualified Foreign Corporation for US tax purposes and our dividends qualify for the reduced rates of tax. In order to claim the reduced rates of tax, a shareholder must own our stock for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date.

For more information with respect to this or the 1099-DIV form, please visit http://www.irs.gov/ or contact your professional tax advisor.

Dividend Declarations
The declaration and payment of dividends is determined at the discretion of our Board of Directors.

Dividend Reinvestment Plan (DRIP)
Shareholders can receive their dividends as a cash payment or can reinvest the dividend to purchase additional common share through our DRIP, without paying any commissions. Read more on our DRIP ( 8 pg) or contact our transfer agent to register.

Duplicate Reports
If you are receiving duplicate annual or quarterly reports from us, it is likely because your Nexen stock is held in more than one account. Please contact our transfer agent who can help remove the duplicate mailings.

Name/Address Changes
To ensure our records are kept up-to-date, please contact our transfer agent with any name or address changes.

Tax Implications
Please speak to your financial advisor for any tax related questions regarding your shares or dividends.