Canadian Superior Logs Pay at Windfall Area in Canada

Canadian Superior Energy reports that it's first Windfall area exploration well has been successfully drilled. The well drilled at 14-33-60-14 W5M (W.I. 40%) was AOF'd at 1,300 mcf/d and has an estimated stabilized rate of 750 mcf/d. Lease construction for a second well at Windfall 13-01-60-14 W5M (100% W.I.) is near completion, and will spud shortly based on rig availability. Furthermore, on January 29th in the East Ladyfern area, drilling commenced on our Slave Point exploration test and will take approximately one month to drill and log. "We have been waiting patiently for both the weather to cooperate and the contracted rig to become available, but are now under way and are very excited about this opportunity" said Mel Marshall, Vice President of Exploration.

Also in the Company's core producing area in Drumheller Alberta, the Company announced the successful drilling of ten Coal Bed Methane wells in the 4th Quarter with an industry partner and averaged 28.8% W.I. Test rates of the wells that have been tested average 150 mcf/d and the program is in the early tie-in phase. Also in the 4th Quarter, the Company drilled eight operated wells for various Cretaceous targets with an average W.I. of over 90%. Seven of these wells were cased, of which three are on production, three are waiting on completion or tie-in, and one is suspended and waiting on further evaluation. Average rates for the wells that have been tested is around 500 mcf/d.

The Company expects to achieve total oil and gas revenues in 2004 of $38.0 million, up 20.2% from $31.6 million achieved in 2003, cash flow from operations in 2004 is expected to reach $19.0 million, up 42.4% from 2003 cash flow of $13.3 million. Average production volumes for 2004 are estimated to be 2,450 boe/d, up 7.2% from an average 2003 volume of 2,285 boe/d. Actual results are expected to be reported by March 31, 2005.