Canadian Superior Acquires Exploration Rights Offshore Nova Scotia
Canadian Superior Energy Inc. has successfully acquired two major exploration licenses offshore Nova Scotia from the Canada-Nova Scotia Offshore Petroleum Board.
The Company said in Calgary today that it has been advised by the Canada-Nova Scotia Offshore Petroleum Board that Canadian Superior was successful in acquiring two large offshore drilling licenses totaling 822,000 acres offshore Nova Scotia at the Canada-Nova Scotia Offshore Petroleum Board's November 1, 2001 Land Sale.
Company President Greg Noval said that the two licenses named the "Mayflower" and "Mariner" Prospects were posted for sale and acquired by Canadian Superior based on detailed geological and seismic work conducted by Canadian Superior on the prospects. The Company's "Mayflower Prospect" (Block #1 at the November 1, 2001 Land Sale) is located approximately 285 miles straight east of Boston, Massachusetts in close proximity to vibrant New England and northeast United States energy markets. The "Mayflower Prospect" targeting three large deep-water turbidite structures identified on the property, was acquired for a Work Expenditure Bid of Cdn. $41,250,000. Noval said that this prospect offers world-class exploration potential given that the large structures identified on the "Mayflower Prospect" are analogous to those currently being successfully drilled in the deep-water offshore in the Gulf of Mexico, Angola and Brazil, where similar structures may yield reserves ranging up to 500 million barrels of oil or 5 TCF of natural gas.
In addition to the successful acquisition of the "Mayflower Prospect," Canadian Superior's "Mariner Prospect" (Block #4 at the November 1, 2001 Land Sale) was acquired directly offsetting five significant discoveries at Sable Island including the 1.6 TCF Venture natural gas field located, 180 miles southeast of Halifax, Nova Scotia. The "Mariner Prospect" was successfully acquired for a Work Expenditure Bid of Cdn. $15,510,000 based on proprietary seismic shot by Canadian Superior prior to the Land Sale. The seismic has identified a large Cretaceous structure on the prospect, which is located in shallow water in close proximity to existing Sable Island producing infrastructure. Similar structures in the immediate area are currently producing approximately 500 mmcf/d of natural gas into newly established Nova Scotia and New England markets through the recently constructed Maritimes & Northeast Ltd. pipeline.
Canadian Superior's Chairman Don Axford of Calgary, Alberta while in New York today said, "The land acquisitions position Canadian Superior as a major player with multiple shallow and deep-water prospects in this world-class basin which is evolving as one of the most exciting exploration basins in the world." Industry has committed to expend approximately Cdn $2.0 Billion offshore Nova Scotia during the next 5 years, including expenditure on several exciting deep-water wells. Axford, former Vice President of Exploration of Mobil Oil Canada, was recently honored as Nova Scotia's first Petroleum Pioneer at the 2001 Offshore/Onshore Technologies Association Conference in Halifax and is publicly accredited with having discovered the Sable Island natural gas field, which has assigned reserves of approximately 5 TCF of natural gas.