Canadian Superior Energy Says Revenues Up 61%

Canadian Superior Energy Inc. (AMEX: SNG; TSX: SNG) reports that oil and gas revenue before royalties, cash flow from operations and net income has all increased in the third quarter of 2005 to record levels. Oil and gas revenues before royalties during the third quarter of 2005 increased to $15.0 million, up 61%, as compared to $9.3 million in the third quarter of 2004. For the first nine months of 2005, oil and gas revenues of $35.9 million were achieved, up 30%, as compared to 2004 revenues of $27.7 million for the same period. The revenue increases are due to increased production volumes brought on in the third quarter of 2005 as well as higher average prices achieved.

Cash flow from operations in the third quarter of 2005 increased to $8.9 million, up 96%, from $4.5 million recorded in the third quarter of 2004. For the nine months ended September 30, 2005, cash flow of $20.0 million was achieved, up 40% from $14.3 million for the same period in 2004. Higher product prices received in 2005 combined with increased product volumes were the primary contributor to the cash flow increases.

The Corporation recorded a net income of $1.5 million ($0.01 per share) in the third quarter of 2005 up from a net loss of $2.3 million ($0.02 per share) recorded in the third quarter of 2004; a net change of $3.8 million compared to 2004. Accordingly, in the first nine months of 2005, the Corporation posted a net income of $1.6 million ($0.01 per share) compared to a net loss of $3.3 million ($0.03 per share) over the same period in 2004; a net change of $4.9 million compared to 2004.

The Corporation also reported that daily production for the third quarter of 2005 averaged 2,705 boe/d, up 13%, as compared to 2,401 boe/d recorded for the same period in 2004. The increased production was the result of increased well tie-ins and operational efficiencies achieved in the third quarter which were previously hampered by unusually wet weather conditions earlier in 2005. Average daily production for the nine months ended September 30, 2005, increased to 2,523 boe/d, up from 2,501 boe/d recorded in the first nine months of 2004; in spite an extremely early breakup during the first quarter of 2005, and record rains and flooding during the second quarter, both of which interrupted drilling, completion and tie-in operations in the first half of the year. Current production is approximately 3,100 boe per day.

The average sales price for the third quarter of 2005 was $60.21/boe ($9.86/mcf for natural gas and $63.60/bbl for oil and NGLs) up 43% from $42.01/boe in 2004 ($6.41/mcf for natural gas and $48.94/bbl for oil and NGLs). Average sales prices for the first nine months of 2005 averaged $52.13/boe ($8.42/mcf for natural gas and $57.35/bbl for oil and NGLs) up 29% from $40.38/boe recorded in 2004 ($6.68/mcf for natural gas and $40.52/bbl for oil and NGLs). Gas volumes of 12,345 mcf/d during the third quarter of 2005 increased 18% compared to 10,490 mcf/d in the same period in 2004, while oil volumes remained relatively flat at 647 bbls per day in the third quarter of 2005 from an average of 653 bbls per day produced in 2004. Nine month average gas volumes of 11,609 mcf/d for 2005 were up 3% from 11,263 mcf/day recorded over the same period in 2004 while oil volumes of 588 bbls/d for the nine months were down 6% from 2004 sales of 624 bbls/d.

During the first nine months of 2005, Canadian Superior drilled or participated in 47 gross wells (20.4 net) with a drilling success rate of 98%.

HIGHLIGHTS

The following table sets forth selected financial information of
Canadian Superior Energy Inc. for the periods indicated:

(unaudited)
                          Three Months Ended       Nine Months Ended
                             September 30   %        September 30   %
                          2005    2004 Change     2005    2004 Change
                       ----------------------  ----------------------
Financial:
($000's except per
 share amount)
Oil and gas revenues   $14,982 $ 9,282    61%  $35,910 $27,670    30%
Cash flow from
 operations            $ 8,871 $ 4,526    96%  $19,989 $14,274    40%
 Per Share             $  0.08 $  0.04   100%  $  0.18 $  0.13    38%
Net earnings (loss)    $ 1,495 $(2,267)  166%  $ 1,613 $(3,304)  149%
 Per Share             $  0.01 $ (0.02)  150%  $  0.01 $ (0.03)  133%
Capital expenditures   $16,703 $10,477    59%  $30,180 $33,493   -10%
Net debt including
 working capital       $12,451 $14,408   -14%  $12,451 $14,408   -14%
Weighted average common
 shares outstanding    111,972 107,997     4%  110,602 105,767     5%


Production and Pricing:

Natural Gas
 Average daily
  Production (mcf/d)    12,345  10,490    18%   11,609  11,263     3%
 Average Sales Price
  ($/mcf)              $  9.86 $  6.41    54%  $  8.42 $  6.68    26%
Oil & NGLs
 Average Daily
  Production (bbls/d)      647     653    -1%      588     624    -6%
 Average Sales ($/bbl) $ 63.60 $ 48.94    30%  $ 57.35 $ 40.52    42%
Barrels of Oil
 Equivalent (6:1)
 Average Daily
  Production (boe/d)     2,705   2,401    13%    2,523   2,501     1%
 Average Sales Price
  ($/boe)              $ 60.21 $ 42.01    43%  $ 52.13 $ 40.38    29%

Wells Drilled
 Gross                    26.0     9.0   189%     47.0    19.0   147%
 Net                       9.8     8.3    18%     20.4    15.0    36%

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