Canadian Superior Reaches TD at Victory Well

Canadian Superior Energy says that the Victory well in its Intrepid block offshore Trinidad has successfully reached a Total Depth ("TD") of 16,621 feet (subsea). However, while conditioning the wellbore during preparations for open hole logging, the well lost circulation and the drill string became stuck. After several days of retrieval efforts, the decision was made to cut off the lower portion of the drill string and sidetrack the well, re-drilling the bottom section of the well from below the 13-5/8" casing shoe at 9,772 feet (subsea) to total depth, in order to allow for open hole wireline logging and possibly flow testing of the well.

Canadian Superior spudded the well on June 29th and has previously projected that the well would reach TD before September 27th. Operations on the "Victory" well were well ahead of schedule when the well experienced lost mud circulation after reaching TD. After attempting to remedy this situation, all participants, being Canadian Superior, BG, and Challenger Energy unanimously concurred that encouraging results to date indicated that a re-drill (i.e. a mechanical sidetrack) of the lower section of the wellbore from below the 13-5/8" casing shoe (below 9,772 feet subsea) is warranted based on the analysis of Measurement While Drilling (MWD) and Logging While Drilling (LWD) data, (gamma, electrical resistivity, cutting samples, gas in mud measurements, drilling parameters), to allow for open hole wireline logging and possibly flow testing of the well. The new TD is expected to be achieved in advance of the original target of September 27th, 2007.

Canadian Superior is operator of "Intrepid" Block 5(c) and is paying 26 2/3 % of the exploration program cost to maintain a 45% working interest, with its partners BG (paying 40% for a 30% working interest) and Challenger (paying 33 1/3% for a 25% working interest).

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