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Nexen says drilling at Appomattox gives it more confidence in Gulf of Mexico

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CALGARY - Calgary-based energy producer Nexen Inc. (TSX:NXY) says exploratory drilling has confirmed the size of the Appomattox light oil discovery in the Gulf of Mexico.

Drilling had been delayed as a result of a review following the huge British Petroleum oil spill in the Gulf in 2010.

Nexen has said it would wait for the new rules for offshore oil drilling to be clarified but it expected to resume activity in the Gulf at some point.

The company said Monday that Appomattox has the equivalent of between 120 million and 370 million barrels of oil.

The company's share would be one-fifth of that.

Nexen owns 20 per cent of the block, which is operated by Shell, and 25 per cent of another block known as Vicksburg and various other blocks in the area.

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