Canadian Superior Energy Settles Lawsuit

Canadian Superior Energy and its insurers have reached an agreement with plaintiffs' legal counsel to settle all securities class action litigation and actions pending in the United States against the Company and certain of its officers and directors resulting from the drilling last year of the Canadian Superior El Paso "Mariner" I-85 exploration well drilled with El Paso Corporation offshore Nova Scotia.

The US$3.2 million settlement, which is covered by the Company's insurance, has been reached with no admission of liability by any party and has been entered into to avoid costly and time consuming litigation by all parties. All parties have agreed to expeditiously seek the required United States court approval of the settlement.