Canadian Superior Energy Inc.
TSX : SNG
AMEX : SNG

Canadian Superior Energy Inc.

August 15, 2008 08:22 ET

Canadian Superior Energy Reports Record Second Quarter 2008-Production and Cash Flow at All-Time High

CALGARY, ALBERTA--(Marketwire - Aug. 15, 2008) - Canadian Superior Energy Inc. ("Canadian Superior" or the "Company") (TSX:SNG)(AMEX:SNG) is pleased to announce its financial and operating results for the three months ("Q2 2008") and six months ended June 30, 2008.

Recent highlights:

- Canadian Superior as Operator of the "Intrepid" Block 5(c) offshore Trinidad announced a significant natural gas discovery with the drilling and production testing of its "Bounty" exploration well. The "Bounty" 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 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. Given the magnitude of the "Bounty" discovery, the Company plans to move forward expeditiously with appraisal and development drilling and production;

- Western Canada average daily production of 3,870 boe/d in Q2 2008 was an all-time high, up 48% compared to Q2 2007; record petroleum and natural gas revenues of $24.8 million was achieved in Q2 2008, up 108% compared to Q2 2007; and, record cash flow reached $10.7 million in Q2 2008, up 376% compared to the same period in 2007;

- Western Canada average daily production for the six months ended June 30, 2008 was 3,491 boe/d, up 27% or 732 boe/d compared to the six months ended June 30, 2007; for the six months ended June 30, 2008, PNG revenues were $40.8 million or $64.16/boe compared to $24.6 million or $48.92/boe for the comparable period in 2007; and, for the six months ended June 30, 2008, cash flow from operations were $19.9 million or $31.36/boe compared to $8.7 million or $17.38/boe for the comparable period in 2007;

- On May 20, 2008, Canadian Superior announced its participation in a 50/50 joint venture in the proposed development of a $550 million natural gas importation project, entitled "Liberty Natural Gas", in US federal waters offshore New Jersey. The project consists of submerged turret buoys to receive re-gasified LNG approximately fifteen miles offshore New Jersey, fifty miles of offshore natural gas pipeline, and eleven miles of onshore pipeline terminating in Linden, New Jersey. Storage facilities will not be required and the facilities will not be visible once they are installed and, subject to regulatory approvals, the proposed project will begin delivery of up to 2.4 billion cubic feet per day of natural gas by late 2011;

- Other news of interest:

-- Canadian Superior is awaiting final Government approvals for its exploration license in the offshore waters of Tunisia and Libya; the Company expects these approvals in the very near future. Negotiations are underway to secure a drilling rig that is already operating in the area, which will then enable Canadian Superior to expedite a high-potential oil exploration drilling program;

-- In Trinidad and Tobago, Canadian Superior will soon mobilize the Kan Tan IV drilling rig to commence operations on the "Endeavour" well, the third in the series on the "Intrepid" Block 5(c).

Speaking today, Craig McKenzie, Canadian Superior's Chief Executive Officer, said, "These are exciting and rewarding times for Canadian Superior shareholders. We are very pleased to deliver our best quarterly and half year operations performance ever, as well as achieve repeated exploration success offshore Trinidad. With high-potential exploration continuing offshore Trinidad and our new growth efforts in the northeast US and North Africa building momentum, we believe the best is still to come for our shareholders."



Financial and Operational Highlights

----------------------------------------------------------------------------
June 30 Three Months Six Months
----------------------------------------------------------------------------
% %
2008 2007 Change 2008 2007 Change
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Financial
----------------------------------------------------------------------------
($000's except
per share
amounts)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Petroleum and
Natural Gas
Sales 24,824 11,961 108 40,756 24,560 66
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Cash Flow from
Operations 10,723 2,251 376 19,916 8,721 128
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Per Share 0.07 0.02 250 0.14 0.07 550
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Net Income
(Loss) (1,589) 2,187 (173) (3,452) 2,058 (268)
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Per Share (0.01) 0.02 (150) (0.02) 0.02 (129)
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Capital
Expenditures 25,681 9,621 167 37,672 21,940 72
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Nova Scotia
Offshore
Deposits 14,559 14,350 0 14,559 14,350 0
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Net Asset
(Debt) (25,516) (12,905) 98 (25,516) (12,905) 98
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----------------------------------------------------------------------------
Shares
Outstanding
at period end 148,900 132,586 12 148,900 132,586 12
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Operating
----------------------------------------------------------------------------
Average
----------------------------------------------------------------------------
Production
----------------------------------------------------------------------------
Natural Gas
(mcf/d) 18,626 11,802 58 16,875 12,881 31
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Oil and NGL's
(bbls/d) 766 656 17 678 612 11
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Boe/d 3,870 2,623 48 3,491 2,759 27
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----------------------------------------------------------------------------
Average Selling
Price
----------------------------------------------------------------------------
Natural Gas
($/mcf) 10.11 7.83 29 9.23 7.76 19
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Oil and NGL's
($/bbl) 110.23 57.38 92 100.57 57.12 76
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Total ($/boe) 70.47 49.56 42 64.16 48.92 31
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Gross
Undeveloped
Land (Acres)
----------------------------------------------------------------------------
Offshore
Trinidad
and Tobago 135,041 135,041 0 135,041 135,041 0
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Offshore Nova
Scotia 1,234,546 1,234,546 0 1,234,546 1,234,546 0
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Western Canada 314,100 238,191 32 314,100 238,191 32
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----------------------------------------------------------------------------
Wells Drilled
----------------------------------------------------------------------------
Gross 2.0 4.0 (50) 8.0 12.0 (33)
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Net 1.9 3.8 (50) 6.9 10.9 (33)
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Copies of Canadian Superior's Q2 2008 and first six months 2008 Financials and Management Discussion & Analysis ("MD&A") may be obtained on the System for Electronic Document Analysis and Retrieval at www.sedar.com.

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