Superior Canadian Resources Inc.

Superior Canadian Resources Inc.

February 06, 2006 12:10 ET

Superior Canadian Resources Inc.: Montana Oil and Gas Acquisition

CALGARY, ALBERTA--(CCNMatthews - Feb. 6, 2006) - SUPERIOR CANADIAN RESOURCES INC. (TSX VENTURE:CAD) (the "Company") wishes to announce a further update as to the acquisition approved by the shareholders at the December 12, 2005 annual meeting of a 25 % working interest in a further 2,100 acres of contiguous land holdings in South Central Montana for the development of a gas and heavy oil project (Press release # 08-2005 dated September 06,2005).

The Company on behalf of its subsidiary Koro Energy Inc. has engaged the engineering firm of DeGolyer & MacNaughton Canada Limited, (Calgary office), to complete a NI 51-101 compliant engineering report.

The acquisition price is presently set at $ 1,300,000. (US Funds), comprised of a cash payment of $ 300,000 ($ 366,,000 Canadian) and the issuance of a one year convertible debenture at 6 % per annum interest, convertible into 6,971,000 common shares at a deemed value of $ 0.175 cents for the balance owing of $ 1,000,000 ($ 1,220,000 Canadian). The acquisition is subject to confirmation, and adjustment, based on the DeGolyer & MacNaughton independent third party engineering report expected to be completed by the end of the month.

The Company has completed its 2006 winter diamond drilling planning, for its Sim Lake Project, approximately 350 km northeast of Thunder Bay Ontario. Six priority, drill targets will evaluate specific TEM anomalies that were evaluated by the 2005 prospecting and sampling program. The summer program identified potential host rocks for PGE, Nickel and Copper mineralization (Press release # 08-2005 dated September 06, 2005).

Drilling is expected to commence within the next six weeks, due to the uncertainty of accessibility as a result of the unusual warm weather conditions in the region.

"On Behalf of the Board"
D.A. Sim President -

This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Superior Canadian Resources Inc.
    David Sim
    President and Director
    (403) 232-8555
    Superior Canadian Resources Inc.
    Jeff Shier
    (416) 550-9857