Mariner I-85 well finds gas

Canadian Superior Energy Inc. of Calgary, Alberta has encountered gas on the Canadian Superior El Paso Mariner I-85 well in multiple zones as targeted. The company found the high bottom hole pressures, experienced in offset discovery wells, at the depths anticipated. The magnitude of the overpressure was quantified while drilling, based on measured gas levels in the drilling fluid, and subsequently confirmed during the well evaluation with modular dynamic test (MDT) pressure measurements. Gas levels measured while drilling support the presence of gas bearing reservoir sections, subsequently confirmed by the full suite of electric wireline logs now completed and evaluated.

"We are pleased with the results obtained in the drilling of the Canadian Superior El Paso Mariner I-85 well, the first well on the Mariner block. However, given the recent operational pack ice delays and associated cost and the current overall cost of the well, we have reluctantly agreed with El Paso, the operator of the test well, not to proceed with any further testing or completion operations on the test well at this time, to maintain the well within the original budget," Greg Noval, Canadian Superior president and CEO, said. "We are confident that the results from the Marine' I-85 well prove that a substantial gas pool exists between the Mariner I-85 and Arcadia J-16 wells, and we are confident that we have established a significant gas reservoir on the Mariner block between these two wells."

The Mariner I-85 well is one of the deepest test wells to be drilled offshore this year in North America. The exploration well is 290 km southeast of Halifax, Nova Scotia. Three world-class prospects have been identified for drilling on the Mariner block (EL 2409) using high-resolution seismic. The block encompasses 101,800 acres and directly offsets five significant discoveries near Sable Island, including the ExxonMobil Venture natural gas field. The Mariner well is a high temperature high pressure well using the latest in drilling technology to evaluate one of the three above-mentioned structures.

El Paso Oil & Gas Canada Inc. operates the Mariner prospect with 50% interest. Canadian Superior holds the remaining 50% interest. The Rowan Companies Inc.'sRowan Gorilla V jackup drilling rig is drilling the well.

03/12/04