COTTONWOOD OPTI

OPTI Canada Inc. announced today that it has entered into a definitive agreement to sell a 15% working interest in all its joint venture assets to Nexen Inc. for $735 million. Following the transaction OPTI will have a 35% working interest in all the joint venture assets, including Phase 1 of the Long Lake Project (the Project), future phase reserves and resources, and future phases of development. Nexen will have a 65% working interest and will be the operator of both the Steam Assisted Gravity Drainage (SAGD) and Upgrader facilities for Phase 1 and future phases. It is anticipated that after a transition period Nexen will make employment offers to OPTI’s operating and Project staff. Closing is expected to occur in late January 2009 and is subject to approval from a majority of OPTI’s bank lenders in its $500 million revolving credit facility and customary closing conditions, including regulatory approvals.

10 coreholes were drilled and the JV Participants plan to acquire 12 square miles of 3-D seismic during the 2006/2007 winter season.