FWP 1 fwp_2037.txt FINAL TERM SHEET =============================================================================== Filed Pursuant to Rule 433 Registration No. 333-125019 May 1, 2007 FINAL TERM SHEET NEXEN INC. 6.40% NOTES DUE 2037 Issuer: Nexen Inc. Anticipated Ratings (Moody's/S&P/DBRS): Baa2 (Stable) / BBB- (Positive) / BBB (Stable) Format: SEC Registered Pricing Date: May 1, 2007 Settlement Date: May 4, 2007 Maturity Date: May 15, 2037 Principal Amount: $1,250,000,000 Benchmark: UST 4.500% due February 15, 2036 Benchmark Yield: 4.833% Re-offer Spread: +160bps Re-offer Yield to Maturity: 6.433% Coupon: 6.40% Public Offering Price: 99.56% Optional Redemption: Make whole call UST+35 bps Interest Payment Dates: May 15 and November 15, beginning November 15, 2007 Additional Information: As of April 30, 2007, our total long-term debt had increased by $441 million to $5,383 million, and it is estimated our cash and cash equivalents had increased by $580 million to $690 million compared to March 31, 2007 Joint Bookrunning Managers: Banc of America Securities LLC Citigroup Global Markets Inc. Deutsche Bank Securities Inc. Senior Co-Managers: BNP Paribas Securities Corp. HSBC Securities (USA) Inc. RBC Capital Markets Corporation Co-Managers: TD Securities (USA) LLC CIBC World Markets Corp. Scotia Capital (USA) Inc. Lazard Capital Markets LLC BMO Capital Markets Corp. Wachovia Capital Markets, LLC Fortis Securities LLC SG Americas Securities, LLC Daiwa Securities America Inc. Desjardins Securities International Inc.
************************ The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at http://www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free Banc of America Securities LLC at (800) 294-1322, Citigroup Global Markets Inc. at (877) 858-5407, or Deutsche Bank Securities Inc. at (800) 503-4611. Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. ===============================================================================