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NEWS RELEASE TRANSMITTED BY Marketwire
FOR:
Canadian Superior Energy Inc.
TSX SYMBOL:
SNG
AMEX SYMBOL:
SNG
Canadian Superior Reports Third Quarter 2008 Operational and Financial Results With Significant Increases in Production, Revenue, Cash Flow and Provides Update on Endeavour Well Offshore Trinidad
NOV 17, 2008 - 08:19 ET
CALGARY, ALBERTA--(Marketwire - Nov. 17, 2008) - Canadian Superior Energy Inc. ("Canadian Superior" or the "Company") (TSX:SNG)(AMEX:SNG) is pleased to announce its financial and operating results for the three months ("Q3 2008") and nine months ended September 30, 2008 and to provide an update on the "Endeavour" well it is drilling on its "Intrepid" Block 5(c) offshore Trinidad (4th highlight below).
Recent highlights include:
- Western Canada average daily production of 3,567 boe/d in Q3 2008 was up 34% compared to 2,656 boe/d in Q3 2007; petroleum and natural gas revenues of $20.5 million in Q3 2008 were up 100% compared to $10.2 million in Q3 2007; and, cash flow of $9.3 million in Q3 2008, up 344%, compared to $2.1 million in the same period in 2007;
- Western Canada average daily production for the nine months ended September 30, 2008 was 3,516 boe/d, up 29% or 792 boe/d compared to the nine months ended September 30, 2007; for the nine months ended September 30, 2008, petroleum and natural gas revenues were $61.3 million or $63.57/boe, up 76%, compared to $34.8 million or $46.64/boe for the comparable period in 2007; and, for the nine months ended September 30, 2008, cash flow from operations was $29.2 million or $30.34/boe, up 170%, compared to $10.8 million or $14.49/boe for the comparable period in 2007;
- On August 13, 2008, Canadian Superior announced that it has made a significant natural gas discovery with the drilling and production testing of its "Bounty" exploration well on its "Intrepid" Block 5(c) offshore Trinidad. The "Bounty" exploration 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 well should be capable of producing at a rate of approximately 200 mmcf/d from this high pressure zone. During the testing of the 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 bottom hole pressure of 7186 psi;
- On August 28, 2008, Canadian Superior announced that it successfully spudded the "Endeavour" well, approximately 5.2 miles north from the "Bounty" natural gas discovery on its "Intrepid" Block 5(c), planned to be drilled to a total vertical depth ("TD") of approximately 18,000 feet subsea. This well is the 3rd well, in an initial 3 well program, being drilled by Canadian Superior and its partners on the "Intrepid" Block, Block 5(c), located approximately 60 miles offshore, off the east coast of Trinidad. "Endeavour" is being drilled on a separate prospect determined from the analysis and evaluation of extensive 3D seismic on the "Intrepid" Block 5(c). The primary objective of "Endeavour" is to prove up a possible multi-TCF reservoir. The Company's 3D seismic based geological prognosis for the "Endeavour" well shows the main target zone to be between the current drilled depth and final TD, which is expected to be reached by mid-December.
Having reached a depth of 15,617 feet subsea in the final section of the well, due to well bore instability being encountered in the recently drilled hole section from 14,492 to 15,617 feet, the decision was made on November 13, 2008 to pull the bottom hole assembly ("BHA") back up to surface and complete various preparations in order to re-drill that 1,125 feet section with a mechanical sidetrack, prior to drilling to TD. It is expected that the drilling of the mechanical sidetrack will commence early this week.
- On September 3, 2008, Canadian Superior announced its "Oasis" Project, referring to the Company's entry into North Africa. Oasis commenced with the formal signing ceremonies for the offshore "7th of November Block" Exploration and Production Sharing Agreement ("EPSA") that was conducted on Wednesday, August 27, 2008, in Tunis, Tunisia. Canadian Superior and the Tunisian/Libyan company, Joint Exploration, Production, and Petroleum Services Company ("Joint Oil") also signed a "Swap Agreement" awarding an overriding royalty interest and optional participating interest to Joint Oil, in Canadian Superior's "Mariner" Block, offshore, Nova Scotia, Canada. This represents the first such agreement for either Tunisia or Libya. Joint Oil is owned equally by the Tunisian government via Entreprise Tunisienne d'Activites Petrolieres ("ETAP") and the Libyan government via Libya Oil Holdings. Under terms of the EPSA, Canadian Superior has been named Operator for the "7th of November Block" which comprises an area of approximately 1200 square miles (768,000 acres), located some 75 miles offshore the Mediterranean Gulf of Gabes, in water depths ranging from 250-375 feet.
The exploration work commitment for the first phase (4 years) of the 7 year Exploration Period will include three exploration wells, 300 square miles of 3D seismic, and one appraisal well. This appraisal well is intended to be the first well in a fast-track drilling program and will be a direct offset to two significant oil and gas discoveries drilled in the 1990's on a feature known as "Zarat" in the adjacent contract area. Based on 3D seismic acquired subsequent to the discoveries, a substantial portion of the undeveloped "Zarat discovery area" is interpreted to extend north, into the "7th of November Block; and,
- On September 4, 2008 the Company announced that it successfully closed a private placement, of 8,750,000 units, each unit comprised of one common share of Canadian Superior and one-half of a warrant at a price of $4.00(USD) per unit for total gross proceeds of $35,000,000(USD). The proceeds of this private placement are being used to fund Canadian Superior's international exploration spending and new business development activities.
Copies of Canadian Superior's Q3 2008 and first nine months 2008 Financials and Management Discussion & Analysis ("MD&A"), filed on November 14, 2008, may be obtained on the System for Electronic Document Analysis and Retrieval at www.sedar.com.
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Financial and
Operational
Highlights
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Ending Three Nine
September 30 Months Months
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2008 2007 % 2008 2007 %
Change Change
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Financial
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($000's except
per share
amounts)
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Petroleum and
Natural
Gas Sales 20,494 10,248 100 61,250 34,808 76
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Cash Flow from
Operations 9,330 2,101 344 29,247 10,822 170
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Per Share 0.06 0.02 200 0.20 0.08 150
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Net Income
(Loss) (2,117) (2,865) (26) (5,569) (807) 590
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Per Share (0.01) (0.02) 50 (0.04) (0.01) (300)
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Capital
Expenditures 39,516 19,591 102 76,926 41,531 85
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Nova Scotia
Offshore
Deposits 14,559 14,434 0 14,559 14,434 0
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Net Asset
(Debt) (16,674) 11,650 (243) (16,674) 11,650 (243)
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Shares
Outstanding
at Period
End 158,116,000 132,983,000 19 158,116,000 132,983,000 19
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Operating
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Average
Production
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Natural Gas
(mcf/d) 17,268 12,838 35 17,007 12,866 32
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Oil and NGL's
(bbls/d) 689 516 34 682 580 18
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Total
(boe/d) 3,567 2,656 34 3,516 2,724 29
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Average
Selling Price
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Natural Gas
($/mcf) 8.55 5.59 53 9.00 7.04 28
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Oil and NGL's
($/bbl) 108.99 76.81 42 103.43 63.00 64
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Total
($/boe) 62.45 41.95 49 63.57 46.64 36
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Gross
Undeveloped
Land (acres)
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Offshore
Trinidad and
Tobago 135,014 135,041 0 135,041 135,041 0
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Offshore Nova
Scotia 1,234,546 1,234,546 0 1,234,546 1,234,546 0
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Western Canada 210,020 238,191 (11) 210,020 238,191 (11)
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Offshore Libya
and Tunisia 768,000 0 na 768,000 0 na
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Wells Drilled
Western
Canada
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Gross 10.0 16.0 (38) 18.0 28.0 (36)
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Net 9.7 11.0 (12) 16.6 21.9 (24)
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Canadian Superior Energy Inc. is a Calgary, Alberta, Canada based diversified global energy company engaged in the exploration and production of oil and natural gas, and LNG projects, with operations offshore Trinidad and Tobago, offshore Nova Scotia, Canada, in Western Canada, in the United States and in North Africa. See Canadian Superior's website at www.cansup.com to review Canadian Superior's operations in Western Canada, offshore Trinidad and Tobago, Offshore Nova Scotia interests, in the USA and its North Africa interests. Canadian Superior has approximately 20,000 shareholders worldwide, including some of the top institutional shareholders in North America.
This news release contains forward-looking information, including estimates, projections, interpretations, prognoses and other information that may or relates to future production, resource potential and/or reserves, project start-ups and future capital spending. Forward-looking information contained in this news release is as of the date of this news release. The Company assumes no obligation to update and/or revise this forward-looking information "except as required by law". Actual results, estimates, projections, resource potential and/or reserves, interpretations, prognoses and/or estimated results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors or revisions. This news release may contain the reference to the term "undiscovered natural gas resources", which are those quantities of natural gas estimated to be contained in accumulations yet to be discovered. There is no certainty that any portion of undiscovered resources (oil, natural gas, natural gas liquids or other hydrocarbons) will be discovered and that, if discovered, in this or any other discovery, the discovered resource may not be economically viable or technically feasible to produce.
Statements contained in this news release relating to future results, events and expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks, uncertainties, scheduling, re-scheduling and other factors which may cause the actual results, performance, estimates, projections, resource potential and/or reserves, interpretations, prognoses, schedules or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, those described in the Corporations' annual reports on Form 40-F or Form 20-F on file with the U.S. Securities and Exchange Commission.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Superior Energy Inc.
Investor Relations
(403) 294-1411
(403) 216-2374 (FAX)
Website: www.cansup.com
or
Canadian Superior Energy Inc.
Suite 3200, 500 - 4th Avenue S.W.
Calgary, Alberta
Canada T2P 2V6
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