Canadian Superior Updates Nova Scotia Exploration Projects
Canadian Superior Energy President, Greg Noval, said, "Canadian Superior applauds the National Energy Board of Canada's decision to allow Nova Scotia natural gas to flow freely into Canadian and United States' natural gas markets." Noval also confirmed that preparations for the drilling of its next exploration well in Nova Scotia on Canadian Superior's "Mariner" block (EL 2409) are well underway, targeting commencement of drilling in early 2003.
Recent activity (July-September, 2002) has included, in association with Geophysical Service Incorporated of Houston, Texas, the acquisition of over 2,200 kilometers of high-resolution seismic coverage over, and in the immediate vicinity of, Canadian Superior's Offshore Nova Scotia "Mariner" block. Canadian Superior's East Coast Exploration Manager, Gerold Fong, said in Calgary today, "The high-resolution seismic data is being shot to finalize the drill site location for the first 'Mariner' exploration well. This will allow us to thoroughly and rapidly progress engineering and licensing."
Mike Coolen, Canadian Superior's Director of East Coast Operations, in the Company's Halifax offices, commented that, "Licensing of our next exploration well, on 'Mariner', is well underway. Our Environmental Assessment for Exploration Drilling for the 'Mariner' block and our Canada-Nova Scotia Benefits Plan for the 'Mariner Project' has been filed with the Canada-Nova Scotia Offshore Petroleum Board ("CNSOPB"). Procurement activities are ongoing, including rig selection and the subsea surveys which will be proceeding over the next few weeks."
Canadian Superior's President said in Halifax today, "'Mariner' is another piece of Canadian Superior's multi-well drilling plans for the Scotian Shelf and we are very excited about proceeding ahead with drilling on this exciting new project."
Canadian Superior's "Mariner" block (EL 2409), acquired at the November 1, 2001, CNSOPB Land Sale, encompasses a total area of 101,800 acres, and is directly offsetting five significant discoveries near Sable Island including the 1.6 TCF Venture natural gas field located 275 kilometres southeast of Halifax, Nova Scotia. The "Mariner" block was successfully acquired for a Work Expenditure Bid of Cdn. $15,510,000 based on proprietary seismic shot by Canadian Superior prior to the Land Sale. That seismic has identified large Cretaceous/Jurassic age rollover anticline prospects which are similar to the Sable Offshore Energy Project fields. Collectively three of the Sable fields currently produce approximately 500 mmcf/d of natural gas.
Concurrently, Canadian Superior is evaluating the information gained in its recent drilling of the "Marquis" L-35/L35A exploration well, completed in September. Canadian Superior's East Coast Exploration Manager, Gerold Fong, said in Calgary today, "We are encouraged with the results of the well, having now encountered porosity and confirmed Abenaki reef reservoir on the prospect. Our ongoing evaluation and calibration of our Marquis seismic data, integrated with this recent well bore information, has greatly enhanced our understanding of the reef development, now established on the 'Marquis' block." The Company indicated that it plans to get back to drilling on "Marquis" as soon as possible.
Canadian Superior's "Marquis" blocks (EL 2401 & 2402) are located approximately 20 kilometers (12.5 miles) northwest of Sable Island and the prospect is directly on trend and analogous to the Deep Panuke Abenaki Reef Natural Gas Discovery, approximately 25 kilometers (15.6 miles) to the southwest where four wells have been successfully drilled with productive capacity each in excess of 50 MMCF/D. The Deep Panuke discovery is expected to produce up to 400 MMCF/D when it is brought on line. Canadian Superior's "Marquis" Prospect is in shallow water depths (less than 100 meters) in close proximity to existing pipeline infrastructure connecting approximately 500 MMCF/D of Sable Island natural gas to vibrant New England natural gas markets.
In commenting on its deep water acreage, the Company noted it is currently completing a Deep-Water Benthic Survey field program on its deep water "Mayflower" block (EL 2406). In Halifax, Mike Coolen explained that, "This environmental field work will provide additional environmental baseline data to be used in preparing our Environmental Assessment for Exploration Drilling for the 'Mayflower' block. We will be filing that environmental assessment with the CNSOPB prior to year-end. In addition, we expect to be in a position to announce a major joint venture partner in the very near future for this exciting project, on similar terms to what we have achieved on our 'Mariner and Marquis Projects'." The Company's deep water "Mayflower" block is located approximately 285 miles straight east of Boston, Massachusetts, in close proximity to northeast United States energy markets, which are the largest natural gas markets in the world. The "Mayflower Prospect" targeting three large deep-water turbidite structures identified on the property, was acquired for a Work Expenditure Bid of Cdn. $41,250,000. Company President, Greg Noval, said that, "This prospect offers world-class exploration potential given that the large structures identified on the 'Mayflower Prospect' are analogous to those currently being successfully drilled in the deep-water offshore in the Gulf of Mexico, Angola and Brazil, where similar structures may yield reserves ranging up to 500 million barrels of oil or 5 TCF of natural gas." He went on to say that, "Recent announcements on 2002 deep water drilling results and the significant amount of deep water drilling planned for offshore Nova Scotia by Operators such as ExxonMobil, Shell, EnCana and Marathon in 2003 bodes very well for Canadian Superior's 750,000 acre 'Mayflower' deep water prospect." Canadian Superior's "Mayflower Prospect" contains large multiple deep water turbidite structures prospective for world-class natural gas accumulations.