**Exhibit 11.1**

** **

**NexenInc.**

**Statement re: Computation of Earnings per Share - U.S. GAAP**

**For the Year Ended December 31, 2007**

 

(Amountsin Cdn $ millions, except shares and per share amounts)

 
| ** **                                                                          | ** ** | **2007**           | ** ** | **2006**           | ** ** | **2005**           | ** ** |
|-------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| ** **                                                                          | ** ** | **Quarter 1** | ** ** | **Quarter 2** | ** ** | **Quarter 3** | ** ** | **Quarter 4** | ** ** | **Annual** | ** ** | **Annual** | ** ** | **Annual** | ** ** |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Net income from continuing operations available to common  stockholders (U.S. GAAP) |       | $118               |       | $354               |       | $388               |       | $152 |   | $1,012 |   | $579 |   | $658 |   |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Net income available to common stockholders(U.S. GAAP)                              |       | $118               |       | $354               |       | $388               |       | $152 |   | $1,012 |   | $579 |   | $1,110 |   |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Basic                                                                               |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding (thousands)                    |       | 525.9              |       | 527.0              |       | 527.4              |       | 528.1 |   | 527.1 |   | 524.2 |   | 520.7 |   |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| **Basic earnings per share from continuing  operations**                            |       | **$0.22**          | ** ** | **$0.67**          | ** ** | **$0.74**          | ** ** | **$0.29** | ** ** | **$1.92** | ** ** | **$1.10** | ** ** | **$1.26** | ** ** |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| **Basic earnings per share**                                                        | ** ** | **$0.22**          | ** ** | **$0.67**          | ** ** | **$0.74**          | ** ** | **$0.29** | ** ** | **$1.92** | ** ** | **$1.10** | ** ** | **$2.13** | ** ** |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Diluted                                                                             |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding (thousands)                    |       | 525.9              |       | 527.0              |       | 527.4              |       | 528.1 |   | 527.1 |   | 524.2 |   | 520.7 |   |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Net additional shares issuable pursuant to stock options (thousands):               |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Issuable on exercise                                                                |       | 28.4               |       | 26.9               |       | 25.7               |       | 21.3 |   | 26.6 |   | 27.7 |   | 26.8 |   |
| Re-purchasable from proceeds                                                        |       | (15.8              | )          | (15.6              | )          | (15.3              | )          | (12.4 | ) | (15.7 | ) | (14.0 | ) | (14.8 | ) |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Net dilutive effect of stock options (thousands)                                    |       | 12.6               |       | 11.3               |       | 10.4               |       | 8.9 |   | 10.9 |   | 13.7 |   | 12.0 |   |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| Adjusted number of common shares (thousands)                                        |       | 538.5              |       | 538.3              |       | 537.8              |       | 537.0 |   | 538.0 |   | 537.9 |   | 532.7 |   |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| **Diluted earnings per share from continuing  operations**                          | ** ** | **$0.22**          | ** ** | **$0.66**          | ** ** | **$0.72**          | ** ** | **$0.28** | ** ** | **$1.88** | ** ** | **$1.08** | ** ** | **$1.23** | ** ** |
|                                                                                |       |               |       |               |       |               |       |   |   |   |   |   |   |   |   |
| **Diluted earnings per share**                                                      | ** ** | **$0.22**          | ** ** | **$0.66**          | ** ** | **$0.72**          | ** ** | **$0.28** | ** ** | **$1.88** | ** ** | **$1.08** | ** ** | **$2.08** | ** ** |

 

----