Canadian Superior Says Mariner I-85 Well has Reached TVD

Canadian Superior says the Rowan Gorilla V has achieved a Total Vertical Depth (TVD) of 5408 m (17,743 feet), in only 95 days since the Mariner I-85 well was spudded on November 20, 2003. Excluding the anticipated testing cost, which is budgeted separately, it is anticipated that all other well costs (drilling, logging, etc.) will match the original budget of US $30 million, as planned. It would appear, based on current projections, that the Canadian Superior El Paso Mariner I-85 well will set a new low cost, "best value," record for modern drilling offshore Nova Scotia.

Mike Coolen, Canadian Superior's Director of East Coast Operations, commented, "We are quite encouraged with what we have seen to date at the 'Mariner' I-85 well and we are looking forward with anticipation to the electric wireline logging data which will be obtained over the next few days. Testing and/or detailed logging are required to provide definitive well bore results. We are also very pleased with the safety and environmental record obtained to date; and the team's attention to all aspects of the business, including keeping this well on budget."

Due to extremely high pressures encountered and encouraging results experienced to date, Canadian Superior and El Paso are about to commence logging operations at the Mariner I-85 well. An expanded suite of electric wireline logs are planned, in conjunction with selected Modular Dynamic Testing (MDT) and selected side wall cores to assure maximum reservoir evaluation capability. Cased hole High Temperature High Pressure (HTHP) Drill Stem Tests (DST's), using a permanent packer and a Tubing Conveyed Perforating (TCP) gun configuration are planned for zones of higher potential. The exact amount of DST's will be finalized after evaluating the electric wireline log data being obtained over the next few days. Testing and evaluation of the well should then take approximately another two weeks to complete.

Coolen also said, "If there is any confusion regarding the recent sale of El Paso's Canadian assets; to set the record straight, it is our clear understanding from El Paso that El Paso considers their east coast offshore Nova Scotia assets with Canadian Superior to be strategic to their future business plans in Canada, including their plans to construct the Blue Atlantic Pipeline from the Sable Island area offshore Nova Scotia to Long Island, New York. To the best of our knowledge, at no time has El Paso's east coast Nova Scotia holdings been part of any planned Canadian asset sale."

The Mariner I-85 well is one of the deepest wells that will be drilled offshore this year in North America. The exploration well, which has shown encouraging drilling results to date, is located approximately 290 kilometers (180 miles) southeast of Halifax, Nova Scotia. Three large "world-class" prospects, with estimated 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 ExxonMobil Venture natural gas field. The "Mariner" well is a High Temperature High Pressure (HTHP) well, 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 an estimated potential present value - P.V. 10% of Cdn. $1.8 billion.