Canadian Superior Updates Progress at Mariner Well

Canadian Superior Energy says that as of this morning's drilling report (January 6, 2004), the Canadian Superior El Paso "Mariner" I-85 Exploration well, located approximately 290 kilometers (180 miles) southeast of Halifax, Nova Scotia, is currently drilling ahead at a depth of 4,036 meters (13,241 feet).

The well is licensed to a total depth of 5,600 meters (18,372 feet) and drilling operations are proceeding ahead at a record pace to fully evaluate an anticipated series of Cretaceous and Jurassic deltaic sediments in this Prospect with further drilling and well testing planned for the Canadian Superior El Paso "Mariner" I-85 over the next several weeks.

Currently, the Rowan Gorilla V jack-up drilling rig is drilling ahead at the Canadian Superior El Paso "Mariner" I-85 well in the 311 mm (12 1/4 inch) hole section of the well, at a Total Vertical Depth (TVD) of approximately 4,036 meters (13,241 feet), with the 762 mm (30 inch) conductor casing, 508 mm (20 inch) surface casing string and 340, 346 mm (13 3/8, 13 5/8 inch) intermediate casing string already successfully set in place. The "Mariner" I-85 well is currently outperforming offset wells drilled previously in the area.

Commenting on the drilling of the well, Greg Noval, President of Canadian Superior, said, "All those involved in the drilling of the well are to be complimented on the safe and effective progress to date. Current drilling in the 12 1/4 inch hole section of the well is proceeding at a record pace. We look forward to getting deeper in this well where we anticipate seeing a series of deltaic gas bearing sediments in the Upper, Middle and lowermost Mic Mac formations and the Lower Mississauga formation. This is an exciting time for Canadian Superior as we proceed ahead with the drilling of a high-impact, high-pressure, high-temperature natural gas well in an area of proven significant discoveries and existing producing fields."

The "Mariner" I-85 well will take about another 40 days to drill to its targeted total depth of approximately 5,600 meters (18,370 feet) at a total budgeted cost of U.S. $30 million. Testing and evaluation time will be determined based on the detailed formations encountered in the well.

Three large "world-class" prospects, with potential reserves of 2.5 tcf of natural gas, have been identified for drilling on the "Mariner" block (EL 2409) utilizing high-resolution seismic. The block encompasses a total area of 101,800 acres and directly offsets five significant discoveries near Sable Island including the 1.6 tcf Venture natural gas field. The "Mariner" well is a High Temperature High Pressure (HTHP) well, drilling to a total depth of approximately 5,600 meters (18,370 feet), utilizing the latest in drilling technology and is evaluating one of the three large structures mentioned above, initially targeting 1.2 tcf of natural gas reserves identified on the first structure which has a potential present value - P.V. 10% of Cdn. $1.8 billion.