Canadian Superior Acquires Ladyfern Acreage
Canadian Superior Energy Inc. has completed the acquisition in Northwest Alberta of a major acreage position totaling 22 sections of contiguous land located updip of the main Ladyfern gas field.
The Company said it was successful in acquiring 10 sections of land at the Government of Alberta's November 13, 2002 Alberta Petroleum and Natural Gas Land Sale for a total purchase price of $1,249,740 at an average cost of $488.18 per hectare. This acreage position complements lands previously acquired by the Company as a result of an extensive land acquisition program conducted by the Company through land agents over the past 18 months in this highly competitive natural gas play.
Canadian Superior President, Greg Noval said, "We are very pleased with the Ladyfern acquisition which was done on a highly confidential basis. The Ladyfern acquisition is based on extensive seismic data acquired and shot by Canadian Superior updip from the main Ladyfern field on the Slave Point carbonate bank during the fall of 2001 and winter of 2002 which has identified multiple Slave Point natural gas opportunities on our extensive holdings. A decision was made after the original Murphy/Apache Ladyfern discovery to concentrate on the acquisition of acreage updip and East of Ladyfern where little seismic data had been shot by industry. Henceforth, we were able to acquire extensive acreage on a reasonable basis prior to industry focusing on this area. Several major Slave Point amplitude anomalies analogous to the main Ladyfern field have been identified on our acreage and we are very excited about this 'world-class' play". Ladyfern's reserves are estimated to be in excess of 1 tcf of natural gas and it is one of the largest discoveries in Western Canada in the past 15 years. The Ladyfern field accounts for approximately 4% of Western Canadian gas production. The Murphy/Apache Ladyfern discovery at A-097-H/094-H-01 tested at rates in excess of 100 mmcf/d of natural gas.
Canadian Superior will be conducting a multi-well drilling program on the East Ladyfern acreage with drilling to commence over the next 6 weeks with the first test well to be located at LSD 2 of Section 07-92-11 W6M. The multi-well drilling program is part of a focused exploration and development program Canadian Superior is conducting in Western Canada alongside the Company's strategy of developing its extensive holdings offshore Nova Scotia.