Canadian Superior Energy Inc.
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AMEX : SNG

Canadian Superior Energy Inc.

November 10, 2005 09:00 ET

Canadian Superior Receives Major Benefits to Drill Next 'Mariner' Well Offshore Nova Scotia

HALIFAX, NOVA SCOTIA--(CCNMatthews - Nov. 10, 2005) - Canadian Superior Energy Inc. (TSX:SNG) (AMEX:SNG) ("Canadian Superior") of Calgary, Alberta, Canada announced today that the Company has been advised by the Canada-Nova Scotia Offshore Petroleum Board ("CNSOPB") that the consolidation of its deepwater "Mayflower" exploration licence (EL 2406) and its shallow water "Mariner" exploration licence (EL 2409) has been approved by the Government of Canada and the Province of Nova Scotia.

This consolidation will come into effect upon the drilling of the next "Mariner" exploration well and will allow the work commitments and related work commitment deposits for these two exploration licences (EL 2406 and EL 2409) to be combined, allowing the existing work deposit for "Mayflower", approximately $10 million, to be applied directly against the costs of drilling Canadian Superior's next "Mariner" well; in effect, this provides Canadian Superior with $10 million of additional capital to be applied to drilling the next "Mariner" well. The "Mariner" Project lands are located approximately nine kilometres northeast of Sable Island, offshore Nova Scotia, encompassing an offshore area of 101,800 acres (100% Canadian Superior), and directly offsets five significant discoveries near Sable Island, including the ExxonMobil Venture natural gas field.

Also, upon consolidation, the exploration term for Canadian Superior's 100% deepwater "Mayflower" license (EL 2406) will be extended for 2 additional years, from the current expiry date of December 31, 2006 to December 31, 2008; and, thereafter, 50% of the licence area will be extended for an additional 2 years to December 31, 2010. Canadian Superior's "Mayflower" deepwater project exploration licence covers approximately 712,000 acres and mapping to date indicates the presence of five sizeable deepwater prospects. These large prospects are structural and are typically formed by mobile salt tectonics. Canadian Superior plans to take full advantage of the extended exploration term on "Mayflower" and is currently working with a potential partner for its deepwater "Mayflower" prospect. Further high resolution seismic over the "Mayflower" block is planned to further define targeted structures to enable future drilling.

Mike Coolen, a Canadian Superior Director and Vice President, East Coast Operations, said today, in Halifax, "We are very pleased to receive this approval and the support of the Province of Nova Scotia and the Government of Canada and the CNSOPB in putting forward this type of creative incentive to reward and encourage further exploration drilling offshore Nova Scotia."

Canadian Superior is a Calgary, Alberta based oil and gas exploration and production company with operations in Western Canada, offshore Trinidad and Tobago and offshore Nova Scotia. See Canadian Superior's website at www.cansup.com to review Canadian Superior's Western Canadian Operations, Trinidad and Tobago holdings and the Company's offshore Nova Scotia interests.

This news release contains forward-looking information on future production, project start-ups and future capital spending. Actual results 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.

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 and other factors which may cause the actual results, performance 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 Corporation's annual report on Form 40-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 3300, 400 - 3rd Avenue S.W.
    Calgary, Alberta
    Canada T2P 4H2