Mariner I-85 Well Encounters Gas

Canadian Superior Energy reports that the "Mariner" I-85 well encountered gas pay in multiple zones as targeted. The high bottom hole pressures, experienced in offset discovery wells, were encountered at the depths anticipated. The magnitude of the overpressure was quantified while drilling, based on measured gas levels in the drilling fluid, and subsequently confirmed during the well evaluation with Modular Dynamic Test (MDT) pressure measurements. Gas levels measured while drilling support the presence of gas bearing reservoir sections, subsequently confirmed by the full suite of electric wireline logs now completed and evaluated.

In commenting on the "Mariner" I-85 well, Greg Noval, Canadian Superior's President and CEO, said, "We are pleased with the results obtained in the drilling of the Canadian Superior El Paso 'Mariner' I-85 well, the first well on the 'Mariner' Block. However, given the recent operational pack ice delays and associated cost and the current overall cost of the well, we have reluctantly agreed with El Paso, the Operator of the test well, not to proceed with any further testing or completion operations on the test well at this time, to maintain the well within the original budget. We are confident that the results from the 'Mariner' I-85 well prove that a substantial gas pool exists between the 'Mariner' I-85 and 'Arcadia' J-16 wells, and we are confident that we have established a significant gas reservoir on the 'Mariner' Block between these two wells."

The "Mariner" I-85 well is one of the deepest test wells to be drilled offshore this year in North America. The exploration well is located approximately 290 kilometers (180 miles) southeast of Halifax, Nova Scotia. Three "world-class" prospects have been identified for drilling on the "Mariner" block (EL 2409) utilizing high-resolution seismic. The block encompasses a total area of 101,800 acres and directly offsets five significant discoveries near Sable Island including the ExxonMobil Venture natural gas field. The "Mariner" well is a High Temperature High Pressure (HTHP) well utilizing the latest in drilling technology to evaluate one of the three above mentioned structures.

Gerold Fong, Canadian Superior's Exploration Manager commenting on the results from the drilling and well evaluation program, said, "The 'Mariner' I-85 test well has encountered gas pay in multiple zones. This was substantiated through drill cuttings and drilling fluid analyses while drilling through the prospective reservoir zones, and further through detailed analyses of the full suite of electric wireline logs, Modular Dynamic Tests (MDT's) and side wall cores obtained in the well evaluation program. The 'Mariner' I-85 test well is greater than 100 meters (328 feet) structurally higher than the downdip gas well on the 'Arcadia' Significant Discovery License (SDL) located 13 kilometers (8 miles) to the east of 'Mariner' I-85. The reservoir section encountered in 'Mariner' I-85 test well correlates to the zones that tested gas in the 'Arcadia' J-16 well. The 'Mariner' I-85 data has now established gas pay in multiple zones which we look forward to pursuing."

Mike Coolen, Canadian Superior's Director of East Coast Operations, said, "As with all offshore operations, drilling 'Mariner' I-85 has had its challenges, even the rare occurrence of pack ice; but, it is fair to say we are pleased with the overall progress on this project. To date, all operations on the well have been performed in a safe and efficient manner by the Canadian Superior El Paso drilling team and we look forward to continuing with further drilling on this project in the very near future on our large 'Mariner' Block and our offsetting 'Marauder' holdings."

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