# Nexen



## daddybigbucks (Jan 30, 2011)

anyone have any comments on Nexen.

They have been having production issues but they sure seem to be trading cheap at $15.

I havent watched NXY too much but seems to be popping up on my value screen quite a bit.


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## daddybigbucks (Jan 30, 2011)

_grabbed some more shares of NXY because of this:_

(Reuters) - Nexen Inc announced a joint venture with China's top offshore oil company, CNOOC Ltd , in the Gulf of Mexico on Wednesday, a day after the Canadian oil company sold a 40 percent stake in some of its gas assets in British Columbia.7 

CNOOC will have a 20 percent working interest in the Kakuna, Angel Fire, and Cypress deepwater exploration wells. 

The Chinese company may also get a 10 to 25 percent working interest in three other exploration wells. 

The announcement comes a day after Nexen said it would sell 40 percent of its British Columbia shale gas holdings to a group led by Japan's Inpex Corp for C$700 million ($680 million). 

The venture is CNOOC's latest step into the United States. It has two joint-venture deals for shale gas developments with Chesapeake Energy Corp worth $2.4 billion. No details of the value of the Nexen joint venture were disclosed. 

Drilling at the Kakuna well is in progress and Nexen expects to spud the Angel Fire well in 2012, the company said in a statement. 

The two companies already share an interest in the Canadian oil sands. CNOOC has bought Nexen's struggling oil sands partner, Opti Canada Inc, for $34 million and $2 billion in debt, bringing it a 35 percent interest in Nexen's underperforming Long Lake oil sands project. 

The acquisition was approved by the Canadian government last week. 

Nexen produces about 20,000 barrels of oil equivalent per day in the Gulf of Mexico. Its joint venture with CNOOC excludes any interest in the company's existing discoveries, including its 20 percent stake in Royal Dutch Shell Plc's Appomattox field.


_Nexen and CNOOC are sure getting cozy. I think with CNOOC leadership, nexen can really be a big player._


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## daddybigbucks (Jan 30, 2011)

CEO gets fired and stock jumps 10%.

I rarely see that.


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## Toronto.gal (Jan 8, 2010)

Seems that you're all alone here. 

I don't follow the stock, but glad about the 10% jump for you.


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## daddybigbucks (Jan 30, 2011)

Toronto.gal said:


> Seems that you're all alone here.
> 
> I don't follow the stock, but glad about the 10% jump for you.


Lol, yeah. I guess i should stop posting or else it will look like i'm talking to myself.

NXY is a fairly large company, not sure why no interest.


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## daddybigbucks (Jan 30, 2011)

CNOOC is buying out Nexen.
http://tmx.quotemedia.com/article.php?newsid=52919938&qm_symbol=NXY

this just blew me away but i guess that is the way of a right wing government. Im a little bitter as i sold out of nxy a little while ago but made a little profit.

But i did use CNOOC's bid and NXY current balance sheet and worked out a quick book value matrix and applied it to a couple other companies. NXY was at $17 and bought out at $27.50. ECA is currently at $21 and get a buyout bid at $17, SU currently at $30 and a buyout bid would be $35.
Not sure how accurate those are but interesting.


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## doctrine (Sep 30, 2011)

Interesting. I had looked at Nexen, but their dividend was way too low for me. Given that only 11% of their revenue is from Canada, this sell will go through.


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## Islenska (May 4, 2011)

Seems I've held Nexen forever so todays news is great but will still leave me a bit under water.

However will take this new development and also notice some mid-cappers seem to be along for the ride, following Painted Pony and Tourmaline Oil that have shown nice appreciation.

Take-outs sure come out of the blue---hear that RIM...


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## daddybigbucks (Jan 30, 2011)

doctrine said:


> Given that only 11% of their revenue is from Canada, this sell will go through.


Interesting point, never thought of it like that.


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## Islenska (May 4, 2011)

Nexen has sure been a roller coaster ride but looks like the deal is sealed.
odd that it tanked about an hour before closing, someone lost cash that way.
Very hard on the nerves playing the arbitrage.........won't do that again!


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## GoldStone (Mar 6, 2011)

Islenska said:


> odd that it tanked about an hour before closing, someone lost cash that way.


Someone dumped 1M shares around 3:30. 16% drop, followed by 15% surge after hours. That's a heart attack material. Ouch.


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