Canadian Superior and El Paso Team Up Offshore Canada
Canadian Superior Energy Inc. has entered into a joint venture with El Paso Oil and Gas Canada, Inc. to develop Canadian Superior's premier 100% owned land holdings in the shallow waters of the Scotian shelf located offshore Nova Scotia. The companies intend to commence exploratory drilling operations on Canadian Superior's world class "Marquis Project" no later than June 30, 2002. "Marquis" consists of two exploration licenses covering approximately 110,000 acres located approximately 160 kilometers offshore Nova Scotia. Canadian Superior acquired its "Marquis Project" exploration licenses in October 2000 for work expenditure bids of Cdn. $27.7 million. Terms of the joint venture were not disclosed.
"El Paso's entry into this basin is a positive development for the industry and for Nova Scotia," said Don Axford, chairman of Canadian Superior. "El Paso has a superior exploration and production group with a wealth of talent and experience that represents a tremendous asset to us. We are privileged to have them as our partner."
El Paso Oil and Gas Canada, Inc. will participate with Canadian Superior in the drilling and testing of the initial exploration well on Canadian Superior's "Marquis Project" and in the acquisition of a three-dimensional seismic data set covering Canadian Superior's world-class "Mariner" block.
Canadian Superior's "Marquis Project" is located approximately 20 kilometers northwest of Sable Island and is directly on trend with, and analogous to, the recent Deep Panuke Abenaki reef natural gas discovery. Deep Panuke is approximately 25 kilometers to the southwest of the "Marquis Project" and has successfully tested several delineation wells, each with productive capacity in excess of 50 million cubic feet per day (mmcf/d). The Deep Panuke discovery production rate is expected to be in excess of 400 mmcf/d when it is brought on line.
Canadian Superior's 100% owned "Mariner" block is located directly adjacent to Sable Island Offshore Production's (SOEP) Venture field, the largest single SOEP field, with 1.6 trillion cubic feet (tcf) of proven reserves. The SOEP group currently produces approximately 550 mmcf/d from three fields surrounding the block. The 101,800-acre block is located in approximately 60 meters of water and is adjacent to existing pipeline infrastructure.
The "Marquis" well will be drilled to a minimum depth of 4,300 meters TVD or, a depth sufficient to test the deep Abenaki reef section. "We are extremely pleased to have El Paso as a partner and look forward to working very closely with their exploration team to develop Canadian Superior's extensive acreage position in this world-class basin," said Greg Noval, president of Canadian Superior, during a presentation at the IPAA investment symposium in New York. "It has been our goal to drill the "Marquis" well during the second quarter of this year and we are on schedule to do so."