Canadian Superior Begins CBM Production in Drumheller Area

Canadian Superior Energy reports that its new Coal Bed Methane ("CBM") Natural Gas Project in its Drumheller core producing area has been placed on stream, in an initial planned 50 well Coal Bed Methane Production Project.

Also, Canadian Superior said that the first 30 Coal Bed Methane wells in the Drumheller area are now tied-in and on production at an initial average rate of 100 mcf per day per well. The Company has a 30% working interest in these non-operated wells that are producing from the Horseshoe Canyon and have very little, if any, water production, with a net production of approximately 900 mcf per day from the first 30 wells. By year end, the Company expects an additional 20 CBM wells to be tied-in, for a total of 50 wells from this initial CBM Project, with an anticipated net production of approximately 1.5 mmcf per day.

The Company has approximately 140 gross sections (89,600 acres) of high working interest land holdings in its core Drumheller area with potential for Coal Bed Methane production (Please see Coal Bed Methane Holdings Map, Estimates of Resource Potential and Potential Value at, and also an additional 20 sections of land holdings with CBM potential in the Wildunn area of Alberta. The Company intends to build on this solid non-operated foundation and plans to commence drilling of operated CBM wells on its high working interest land in the area.

Canadian Superior also has a new conventional 100% W.I. natural gas discovery in its core Drumheller area that AOF tested at 4.4 mmcf per day, which has been recently tied-in and is expected to have stabilized production of approximately 2 mmcf per day of natural gas, furthermore, the Company is planning follow-up locations in the area.

The Company also noted today that it had commenced the year at a production rate of approximately 2,730 boe/d and is currently producing at a rate of approximately 3,100 boe/d. The Company also said that it expects its production rate at year end to be approximately 3,450 boe/d, up 26% from the production rate at the beginning of the year. Canadian Superior's President, Greg Noval, said, "All additions to Canadian Superior's production base in Western Canada this year have been achieved through the drill bit with a very disciplined capital spending program; and I commend the efforts of Canadian Superior's staff and the support of our investors in this regard."