Canadian Superior Kicks Off Fall Drilling Program in Western

Canadian Superior Energy reports that its exploration and development program in 2004 is continuing to pay off with success in Western Canada.

In Western Canada, Canadian Superior has continued its successful drilling 2004 campaign in the Drumheller area. Following up on the five wells that were drilled in the second quarter of 2004, nine wells were drilled in the third quarter; with eight out of the nine being successful. Six were successful gas wells (four on production, one waiting on tie-in, and one suspended) and two were successful oil wells (one on production and one waiting on tie-in). One of the producing gas wells has been dually completed for conventional gas and for Coal Bed Methane (CBM). Of the nine wells, eight are 100% working interest wells that are operated by Canadian Superior.

The focus in the fourth quarter will continue to be the Drumheller area. Company acreage holdings in Drumheller continue to increase, and as of September 30th, 2004, Canadian Superior holds 181,675 gross acres in that area. The Company plans to drill another eight operated wells into various gas / oil zones within the Cretaceous section. Also, Canadian Superior is participating in a nine well CBM program with a well known CBM player in the area. This program, which started in mid-October, should be completed within the 4th quarter.

Speaking today from the Company's Calgary office, Mel Marshall, Canadian Superior's Vice President, Exploration (former Manager - Exploration and Development, El Paso Oil and Gas Canada, Inc.), said, "All aspects of our drilling programs are going extremely well. In regard to CBM development, the Company will use this 4th Quarter Program as a staging ground for future development of the extensive CBM potential that exists over our acreage base within the Drumheller area."

Canadian Superior is also undertaking a major 3-D seismic program within the Drumheller area. The 46 square kilometer program is being shot over lands that are largely controlled by Canadian Superior and ten to fifteen new drilling locations are expected to be generated from the 3-D Program.

Another major focused area for Canadian Superior will be the continuation of the potentially high impact Slave Point play in the East Ladyfern area. Following the drilling of the first two wells drilled into the play, Canadian Superior and its partner (El Paso Oil and Gas Canada, Inc., now British Gas) conducted a 61 square kilometer 3-D seismic program last winter to further delineate the potential in the area. Based on this encouraging 3-D program, two new drilling locations have been surveyed and the first well should spud shortly after freeze-up later in 2004. An additional 2-D seismic program is also under consideration and may be shot in the area to assess the planned expansion of the play.

Canadian Superior also continues to be active in Altares and the Parkland area of NEBC, and the Venus, Botha and Chinchaga areas of Northern Alberta. These areas are currently under evaluation and review and will be ranked within the existing drilling portfolio.

Speaking further, Marshall went on to say that, "The Windfall / Pine Creek area in the West Central Alberta region also remains a focus area for the Company. Canadian Superior has participated in several land sales in the area and is preparing to spud a well this winter drilling season with a Jurassic / Early Cretaceous target. The Company will also participate in a non-operated well in the area for the same target. At the same time, the Company plans to re-enter an existing producing well to complete a second highly prospective zone and enhance overall production in the area. Accordingly, we are very excited about our upcoming Western Canadian drilling program, not to mention Canadian Superior's upcoming Offshore Nova Scotia and Trinidad activities," Marshall said.

Due to the high level of Company activity in Western Canada, Canadian Superior has further enhanced its technical team with the addition of Mr. Frits Van Dyl, who will work as a Senior Geologist in Western Canada. Mr. Van Dyl has over 20 years of oil and gas experience and most recently has worked at Canstar Exploration Ltd., Baytex Energy Ltd. and Petrorep Resource Ltd. Mr. Van Dyl has also run his own consulting business and is known in the industry as an experienced prospect generator. Mr. Van Dyl will join the Canadian Superior team on November 1, 2004.