Canadian Superior Energy Inc. is pleased to announce its financial and operating results for the three months ended March 31, 2008 (Q1).
In January 2008, Canadian Superior announced a large natural gas discovery in Trinidad. Successfully drilled its Victory well, Intrepid Block 5(c), offshore Trinidad; a natural gas discovery, with two zones successfully production tested. The first zone tested natural gas on a restricted basis at high pressure rates averaging between 40 and 45 mmcf/d; and, the second zone, which was tested independently and separate from the first zone, tested natural gas on a restricted basis at high pressure rates averaging in excess of 30 mmcf/d;
On March 26, 2008, Canadian Superior closed the acquisition of Seeker Petroleum Ltd. for a consideration of $51.2 million. Through the acquisition Canadian Superior acquired approximately 1,035 BOE/d (72% natural gas, 28% oil & liquids), approximately 2,073 MBOE of proven plus probable reserves and approximately 1,297 MBOE additional possible reserves, 55,385 net acres of undeveloped land and 102 sq. km of proprietary 3D seismic;
On February 20, 2008, Canadian Superior along with its partners, BG International Limited (BG), a wholly owned subsidiary of the BG Group plc and Challenger Energy Corp. successfully spudded the Bounty well on the Intrepid Block 5(c), offshore Trinidad, with the Kan Tan IV semi-submersible drilling rig. The Bounty well is located approximately 2.2 miles from the recently announced Victory well natural gas discovery;
Average daily production for Q1 2008 was 3,110 boe/d, up 7% or 213 boe/d compared to Q1 2007, with a Q1 2008 exit rate of 4,350 boe/d;
Drilled 6 gross (5.0 net) wells during the period, resulting in 3 gross (2.6 net) natural gas and 3 gross (2.4 net) oil wells, all currently being evaluated;
Petroleum and natural gas revenues (net of transportation) were $15.9 million or $56.29/boe in Q1 2008 compared to $12.6 million or $48.31/boe in Q1 2007;
Cash flow from operations were $9.2 million or $32.49/boe in Q1 2008 compared to $6.5 million or $24.81/boe in Q1 2007; and
Net debt at March 31, 2008 was $11.3 million or 0.68:1 on net debt to twelve month trailing cash flow from operations.
Speaking today, Craig McKenzie, Canadian Superior's Chief Executive Officer, said "Our corporate objective is to remain focused on adding shareholder value with high impact offshore exploration in Trinidad, combined with growing cash flow from Western Canada. We are pleased to report that in the First Quarter of 2008 our average daily production, oil and gas revenues and cash flow from operations have all increased over the same period in 2007. We expect for the remainder of this year will be very exciting and rewarding for Canadian Superior shareholders."