Canadian Superior Launches East Coast Drilling Initiative
Canadian Superior Energy Inc. of Calgary, Alberta announced that the Company is proceeding forward with a major East Coast Drilling Initiative offshore Nova Scotia in conjunction with the release of a new Scotian Shelf Natural Gas Supply Study released in Calgary today by the Ziff Energy Group ("Ziff Energy").
Company President Greg Noval said in Calgary today, "Canadian Superior plans to commence drilling on the Company's 'Marquis Prospect' offshore Nova Scotia by September of this year.
The prospect is located approximately 20 kilometres (12.5 miles) northwest of Sable Island, which is approximately 250 kilometres (155 miles) southeast of Halifax, Nova Scotia."
The Company said it is proposing a multi-well drilling program in the area over the next 18 months and that detailed seismic conducted for the Company has identified major Abenaki Reefs underlying the Company's new holdings directly on trend and analogous to PanCanadian Petroleum Limited's ("PanCanadian's") recent 2 TCF Abenaki Reef Natural Gas Discovery, approximately 25 kilometres (15.6 miles) to the southwest where several new wells have been recently tested with productive capacity each in excess of 50 MMCF/D. Canadian Superior's properties are in shallow water depths (100 metres) in close proximity to newly constructed pipeline infrastructure connecting 500 MMCF/D of Sable Island natural gas to vibrant New England natural gas markets.
Noval said that subject to regulatory approval, Canadian Superior is proceeding ahead to drill and operate a 4,500 metre (14,760 feet) deep Abenaki Reef test well at a cost of approximately Cdn. $24 Million on its "Marquis Blocks" acquired for a total work commitment bid of Cdn. $27,570,000 late last year. At a briefing in Calgary today, Canadian Superior's East Coast Exploration Manager, Gerold Fong, presented analysts with detailed seismic and geology outlining Canadian Superior's "Marquis Prospect" and PanCanadian's recent Panuke discovery. The discovery is expected to produce up to 500 MMCF/D when it is brought on line through a new pipeline recently announced by PanCanadian. Fong said, "The Canadian Superior 'Marquis Prospect' is directly on trend to the PanCanadian discovery and is of equal if not greater potential based upon Canadian Superior's interpretation of extensive seismic and geological data." Fong further commented on the area's world-class potential for natural gas and oil development in the sedimentary sands and deep-water turbides in the surrounding area.
In conjunction with Canadian Superior's announcement, Ziff Energy released a new major Scotian Shelf Natural Gas Supply Study outlining the tremendous potential of the area. Ziff Energy noted that the area is expected to produce approximately 1.2 BCF/D of natural gas by 2005; up from current rates of 500 MMCF/D and that the area has potential for up to 50 TCF of natural gas reserves. 10 TCF of natural gas reserves have already been discovered to date in the Scotian Shelf area as contrasted to approximately 6 TCF in the Mackenzie Valley and Beaufort Sea area making the Scotian Shelf one of the most attractive areas in North America for natural gas exploration.
The Ziff Report noted that the area has a relatively high drilling success rate of over 30% and that exploration on the Scotian Shelf began in 1960 with the efforts of Don Axford (then a senior executive at Mobil Canada) currently Chairman of Canadian Superior who is publicly accredited with having found the 6 TCF Sable Island natural gas field and that the beginning of the new millennium has seen the fulfillment of Axford's 1960 vision for the world-class potential of the Scotian Shelf. The Ziff Report also noted that the basin has an excellent fiscal regime and that it is in close proximity to some of the largest natural gas markets in the world. Ziff Energy further commented that reserves are only 1,200 kilometres (750 miles) from strong northeast U.S. markets as contrasted to 2,000 kilometres (1,250 miles) from the Gulf of Mexico and 3,600 kilometres (2,250 miles) from Western Canada, making reserves in this basin relatively more valuable than reserves in other areas of North America.
At the analysts' presentation in Calgary today, Canadian Superior also announced that the engineering firm, Jacques Whitford Group, Ltd. of Halifax, Nova Scotia, has been awarded the engineering contract to proceed with well licensing on Canadian Superior's "Marquis Blocks" and that a drilling rig contract is in the process of being finalized.
Canadian Superior is a Calgary based oil and gas exploration and production company. The shares of Canadian Superior trade on the Canadian Venture Exchange (CDNX) under the stock symbol (SNG).