In a press release from Calgary today citing a detailed excerpt of its first quarter 2004 report to shareholders, where Canadian Superior recently announced record 2004 operating results, Canadian Superior said it would be remiss if it did not comment briefly on the US class action proceedings that pertain to the "Mariner" exploration well threatened or initiated against it and certain of its officers and directors recently since the drilling of the "Mariner" exploration well, in the United States District Court, Southern District of New York. Specifically, the Allegations are that Canadian Superior and certain of its officers and directors, amongst other things, made materially false and misleading statements to the public with regard to the costs and results of the Company's exploration drilling operations offshore Nova Scotia causing investors to suffer damages. Canadian Superior and the individuals involved categorically deny these allegations. Canadian Superior said that it is of the opinion that these allegations are being made by ill-informed US plaintiff lawyers and are groundless, frivolous and a misuse of the United States legal system. As of the date of its first quarter 2004 quarterly report, Canadian Superior said it has been informed of thirteen proceedings that have been threatened or initiated against Canadian Superior and certain of its officers and directors in the United States District Court, Southern District of New York. The Company said, "In the opinion of Canadian Superior these self-serving actions and allegations are contrary to the interests of our shareholders. The media may have you believe that these proceedings are broad based and constitute a large segment of our shareholders, when in fact, as best we can determine, of the thirteen class action proceedings announced, the thirteen individual plaintiffs involved have total shareholdings of Canadian Superior estimated at less than 90,000 shares, out of the total shareholdings of our Company of 107.9 million common shares issued and outstanding as of March 31, 2004. One of these alleged plaintiffs even bought and sold shares of Canadian Superior for a profit during the drilling of the 'Mariner' exploration well as per Statements of Claim."
Canadian Superior said furthermore, "Not only do we find these actions and allegations offensive, but in our opinion, they are intended to disrupt our business. This will not be the case! Our legal counsel advises us that these various proceedings and actions will undoubtedly be consolidated into one action and we wish to assure you that this action and the allegations and/or any other 'copy cat' actions and those responsible for them shall be dealt with aggressively in court by our legal counsel, if necessary. In our opinion, as a number of our supporters have said, these actions and allegations are the conduct of self-serving plaintiff lawyers who are nothing more than 'shakedown artists' who are trying to intimidate our Company. Again, we do not intend to allow this to be the case! They will be dealt with appropriately by Canadian Superior and our legal counsel in due course. In the interim, these actions and allegations are regrettable, and we will keep you up to date on further developments in this regard, and we look forward to proceeding with further work on our "Mariner" exploration project."
As announced on March 11, 2004, Canadian Superior, reiterates today, that it remains confident that results from the "Mariner" I-85 exploration well prove that a substantial gas pool exists between the "Mariner" I-85 well and the Arcadia J-16 well and that the Company plans to move forward with drilling on the "Mariner" block in the near future. The factual accuracy of Canadian Superior's March 11, 2004 Press Release has been confirmed publicly on numerous occasions by El Paso.
Canadian Superior also confirmed today that its President & CEO Greg Noval has commenced an action against the National Post, its owners and certain of its reporters for $75 million for damages relating to misleading reporting on Canadian Superior's "Mariner Well' and the "class actions". A copy of the Noval Statement of Claim filed May 27, 2004 in the Court of Queen's Bench of Alberta may be viewed on Canadian Superior's website at www.cansup.com under the title "President Launches First Offensive against National Post".
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