Canadian Superior Energy Inc. reported that its Western Canada exploration and production operations continue to exceed growth targets. 2007 exit production rate was 3,530 boe/d, up 14% or 430 boe/d above the target rate quoted last fall. In Q4 2007 the Company drilled 5 new wells in the greater Drumheller area. Completion and tie-in work resulted in Q4 2007 production averaging 3,025 boe/d, up 10% or 300 boe/d from Q3. In addition, 10,800 acres were purchased at Crown land sales in the Peace River Arch ("PRA") area.
Closing the previously announced acquisition of Seeker Petroleum Ltd. ("Seeker") is on track for mid-March and the combined production at the time of the transaction will enable Canadian Superior to be within striking distance of achieving its 5,000 boe/d mid-year target. The combined company will have in excess of 160,000 gross undeveloped acres of land at an average working interest of 68%.
There are currently nine wells planned to be drilled in the first quarter of 2008. Three of these have already been drilled and cased. This number will rise to eleven as Seeker has two wells to be drilled this quarter. There are two 3D seismic programs planned for winter 2008 that total 73 square kilometers. A large third program will be added to evaluate Seeker acreage. A more comprehensive capital plan is being developed to rank and prioritize the two companies' drilling portfolios.
Speaking today, Craig McKenzie, Canadian Superior's Chief Executive Officer, said, "Increasing our Canadian production base provides cash flow to fund our international growth, which is successfully expanding at a rapid pace. We are building good growth momentum in North America, Trinidad and Tobago, and Libya/Tunisia, and, as such, are stepping up our ability to either fund that growth using internal cash flows or, alternatively, secure debt-financing, bearing in mind our emphasis on financial stability and increasing shareholder returns. In Western Canada, we will continue to explore our growing inventory of undeveloped acreage, as well as pursue select acquisitions that are accretive to our base."
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