Canadian Superior Energy Inc.
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Canadian Superior Energy Inc.

August 13, 2008 08:27 ET

Canadian Superior Energy Announces Significant Natural Gas Discovery Offshore Trinidad

CALGARY, ALBERTA--(Marketwire - Aug. 13, 2008) - Canadian Superior Energy Inc. ("Canadian Superior") (TSX:SNG)(AMEX:SNG) as Operator of the "Intrepid" Block 5(c) offshore Trinidad announced today that it has made a significant natural gas discovery with the drilling and production testing of its "Bounty" exploration well.

The "Bounty" exploration well was drilled to a total depth of approximately 17,360 feet and encountered gas bearing horizons with the main targeted zone in the well encountering approximately 200 feet of pay. Initial test results indicate that the "Bounty" well is capable of producing at a rate of approximately 200 mmcf/d from this high pressure zone. The results from the "Bounty" well and interpretations of extensive 3-D seismic data and other data indicate a natural gas resource potential of up to 2.6 TCF of natural gas from the tested structure. During the testing of the Bounty well, production testing equipment capacity was maximized resulting in flow testing being restricted to a stabilized rate of 60 mmcf/d of natural gas with a flowing bottomhole pressure of 7186 psi.

Speaking from Calgary today, Canadian Superior's Chairman, Greg Noval, stated, "We are very pleased with the results of the 'Bounty' well and production testing indicates that we have drilled one of the best natural gas wells offshore Trinidad. The 'Bounty' natural gas discovery represents a significant achievement for Canadian Superior and our partners and shows the tremendous opportunities available to the oil and gas industry in Trinidad and Tobago."

The "Bounty" natural gas discovery is the second natural gas discovery Canadian Superior and its partners have made in 2008 on their "Intrepid" Block 5(c) located approximately 60 miles off the east coast of Trinidad.

Craig McKenzie, Canadian Superior's Chief Executive Officer, added, "The 'Bounty' discovery has met our expectations and has proven up a large high quality natural gas reservoir that in combination with our extensive 3-D seismic data in the area appears to exceed 7,000 acres in size. I am confident the 'Bounty' well will initially produce at approximately 200 mmcf/d of sales natural gas at the anticipated pipeline pressure. This compares favorably with production from the nearest analogous field, Dolphin Deep, where each of the two wells in this field produce at approximately 150 mmcf/d. Given the magnitude of the 'Bounty' discovery, we plan to move forward expeditiously with appraisal and development drilling and production."

Operations are now underway to demobilize the testing equipment and move the Kan Tan IV semi-submersible drilling rig to drill a third exploration well location on the "Intrepid" Block 5(c), the "Endeavour" well, which should spud by the end of August 2008.

Visit Canadian Superior's website, www.cansup.com, to view maps of "Intrepid" Block 5(c) and photographs taken of the flow testing at the new "Bounty" discovery well.

Canadian Superior is paying 26-2/3% of the Block 5(c) exploration program cost to maintain a 45% working interest in Block 5(c), with its partners, BG International Limited, a wholly owned subsidiary of the BG Group plc (LSE:BG.L), paying 40% for a 30% working interest and Challenger Energy Corp. (TSX VENTURE:CHQ)(AMEX:CHQ) paying 33-1/3% for a 25% working interest through Canadian Superior.

Canadian Superior is a Calgary, Alberta, Canada based oil and gas exploration and production company with operations primarily offshore Trinidad and Tobago, Offshore Nova Scotia, Canada and in Western Canada. See Canadian Superior's website at www.cansup.com to review Canadian Superior's operations in Western Canada, offshore Trinidad and Tobago and Offshore Nova Scotia interests. Canadian Superior has approximately 20,000 shareholders worldwide, including some of the top institutional shareholders in North America.

This news release contains forward-looking information, including estimates, projections, interpretations, prognoses and other information that may or relates to future production, resource potential and/or reserves, project start-ups and future capital spending. Actual results, estimates, projections, resource potential and/or reserves, interpretations, prognoses and/or estimated results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors or revisions. This news release may contain the reference to the term "undiscovered natural gas resources", which are those quantities of natural gas estimated to be contained in accumulations yet to be discovered. There is no certainty that any portion of undiscovered resources will be discovered and that, if discovered, in this or any other discovery, the discovered resource may not be economically viable or technically feasible to produce.

Statements contained in this news release relating to future results, events and expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks, uncertainties, scheduling, re-scheduling and other factors which may cause the actual results, performance, estimates, projections, resource potential and/or reserves, interpretations, prognoses, schedules or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, those described in the Corporations' annual reports on Form 40-F or Form 20-F on file with the U.S. Securities and Exchange Commission.

Contact Information

  • Canadian Superior Energy Inc.
    Investor Relations
    (403) 294-1411
    (403) 216-2374 (FAX)
    Website: www.cansup.com
    or
    Canadian Superior Energy Inc.
    Suite 3200, 500 - 4th Avenue S.W.
    Calgary, Alberta
    Canada T2P 2V6