Canadian Superior's Revenues Up 108% from 2007

Canadian Superior Energy Inc. has announced its financial and operating results for the three months ("Q2 2008") and six months ended June 30, 2008.

Recent highlights:

  • Canadian Superior as Operator of the "Intrepid" Block 5(c) offshore Trinidad announced a significant natural gas discovery with the drilling and production testing of its "Bounty" exploration well. The "Bounty" well was drilled to a total depth of approximately 17,360 feet and encountered gas bearing horizons with the main targeted zone in the well encountering approximately 200 feet of pay. Initial test results indicate that the "Bounty" well is capable of producing at a rate of approximately 200 mmcf/d from this high pressure zone. The results from the "Bounty" well and interpretations of extensive 3-D seismic and other data indicate a natural gas resource potential of up to 2.6 TCF of natural gas from the tested structure. During the testing of the Bounty well, production testing equipment capacity was maximized resulting in flow testing being restricted to a stabilized rate of 60 mmcf/d of natural gas with a flowing bottomhole pressure of 7186 psi. Given the magnitude of the "Bounty" discovery, the Company plans to move forward expeditiously with appraisal and development drilling and production;
  • Western Canada average daily production of 3,870 boe/d in Q2 2008 was an all-time high, up 48% compared to Q2 2007; record petroleum and natural gas revenues of $24.8 million was achieved in Q2 2008, up 108% compared to Q2 2007; and, record cash flow reached $10.7 million in Q2 2008, up 376% compared to the same period in 2007;
  • Western Canada average daily production for the six months ended June 30, 2008 was 3,491 boe/d, up 27% or 732 boe/d compared to the six months ended June 30, 2007; for the six months ended June 30, 2008, PNG revenues were $40.8 million or $64.16/boe compared to $24.6 million or $48.92/boe for the comparable period in 2007; and, for the six months ended June 30, 2008, cash flow from operations were $19.9 million or $31.36/boe compared to $8.7 million or $17.38/boe for the comparable period in 2007;
  • On May 20, 2008, Canadian Superior announced its participation in a 50/50 joint venture in the proposed development of a $550 million natural gas importation project, entitled "Liberty Natural Gas", in US federal waters offshore New Jersey. The project consists of submerged turret buoys to receive re-gasified LNG approximately fifteen miles offshore New Jersey, fifty miles of offshore natural gas pipeline, and eleven miles of onshore pipeline terminating in Linden, New Jersey. Storage facilities will not be required and the facilities will not be visible once they are installed and, subject to regulatory approvals, the proposed project will begin delivery of up to 2.4 billion cubic feet per day of natural gas by late 2011;

Other news of interest:

  • Canadian Superior is awaiting final Government approvals for its exploration license in the offshore waters of Tunisia and Libya; the Company expects these approvals in the very near future. Negotiations are underway to secure a drilling rig that is already operating in the area, which will then enable Canadian Superior to expedite a high-potential oil exploration drilling program;
  • In Trinidad and Tobago, Canadian Superior will soon mobilize the Kan Tan IV drilling rig to commence operations on the "Endeavour" well, the third in the series on the "Intrepid" Block 5(c).
  • Speaking today, Craig McKenzie, Canadian Superior's Chief Executive Officer, said, "These are exciting and rewarding times for Canadian Superior shareholders. We are very pleased to deliver our best quarterly and half year operations performance ever, as well as achieve repeated exploration success offshore Trinidad. With high-potential exploration continuing offshore Trinidad and our new growth efforts in the northeast US and North Africa building momentum, we believe the best is still to come for our shareholders."