Canadian Superior Energy Announces Western Canada Natural Gas Discoveries: Active Winter Drilling Program Underway; East Coast `Mariner` I-85 Well on Schedule.

Energy Editors/Business Editors

CALGARY, Alberta & HALIFAX, Nova Scotia--(BUSINESS WIRE)--Jan. 28, 2004

Canadian Superior Energy Inc. ("Canadian Superior") - (AMEX:SNG)(TSX:SNG) of Calgary, Alberta announced today two new natural gas discoveries in Western Canada in the Watts and Craigmyle areas of east central Alberta. The new wells are located at LSD 01-27- 30 -16W4 and LSD 11-5-32-18W4 and have been AOF tested 11.2 mmcf/d and 6.5 mmcf/d, respectively. It is expected that the wells will be tied in for production within the next 30 days. These wells are in addition to 12 wells successfully drilled by Canadian Superior in the Drumheller area during the past six months.

"Canadian Superior has been conducting an active drilling program in the Drumheller area and east central Alberta over the past several months and the two new gas discoveries represent an extremely successful drilling program for the Company", Company President Greg Noval said today in Calgary. In total, the Company has drilled 14 wells in the area since the Drumheller area properties were acquired from El Paso Oil & Gas Canada, Inc. having established a success rate of 93% comprising of four oil wells, nine gas wells and one well abandonment.

The Company is maintaining an extremely active developmental drilling program in the area this winter, and in addition, Canadian Superior is proceeding ahead with high impact exploration plays in the Windfall area of west central Alberta and East Ladyfern area of northwestern Alberta. Plans are currently underway for the Company to spud an exploration well located in the Windfall area targeting the Upper Mannville and Gething formations at LSD 07-33-60-14 W4M. Also in the East Ladyfern area, the Company is just completing the acquisition of 25 square miles of high resolution 3-D seismic. This complements the 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 the Company's extensive holdings which appear to be analogous to the main Ladyfern field and other major pools in the immediate area.

The first well of the Company's two natural gas discoveries, announced in April 2003, located on the Company's East Ladyfern natural gas play in northwest Alberta is scheduled for testing shortly in February. This bodes well the Company which has a strong acreage position in the area; comprised of 22 contiguous sections of land, located approximately 35 kilometers (22 miles) east southeast and updip of the main Ladyfern gas field.

Furthermore on the East Coast, Canadian Superior is pleased to advise that the Gorilla V jack-up drilling rig has completed drilling the main hole section (the 311 mm (12 1/4 inch) hole section) of the Canadian Superior El Paso "Mariner" I-85 well, drilling the well in record time, to a depth of 4,526 meters (14,849 feet); and has just completed running the 273 / 251 mm (10 3/4, 9 7/8 inch) immediate casing string from surface to the full current depth of the well. Current operations include the completion of various cementing operations and tasks in preparation to "drill out" below the casing shoe. These regular drilling operations are expected to be completed in the next 24 hours.

At that time, drilling will then further proceed in the remaining 216 mm (8 1/2 inch) hole section of the well to total depth. The "Mariner" I-85 well is a high pressure high temperature well that is one of the deepest wells that will be drilled this year in North America and it is proceeding ahead on schedule, and will take about another four weeks to drill to its targeted total depth of approximately 5,600 meters (18,370 feet) at a total budgeted cost of U.S. $30 million. Testing and evaluation of the well will then take place upon the well reaching its targeted total depth which should take approximately another two weeks thereafter to complete.

The Canadian Superior El Paso "Mariner" I-85 exploration well, which has shown encouraging drilling results to-date, is located approximately 290 kilometers (180 miles) southeast of Halifax, Nova Scotia. To date, drilling has confirmed the Company's seismic/geological interpretation for the prospect, with the 'Mariner' I-85 well being over 100 meters (328 feet) structurally higher than the nearby significant discovery well at "Arcadia" J-16. Mike Coolen, Canadian Superior's Director, East Coast Operations said today: "Significant gas shows and early indications of the higher temperatures and higher pressures at "Mariner" I-85 appears to confirm that the nearby proven reservoir gas system extends into this prospect and this bodes well for the next section of the well where primary natural gas targets are anticipated."

Three large "world-class" prospects, with estimated potential reserves of 2.5 tcf of natural gas have been identified for drilling on the "Mariner" block (EL 2409) utilizing high-resolution seismic. The block encompasses a total area of 101,800 acres and directly offsets five significant discoveries near Sable Island including the 1.6 tcf Venture natural gas field. The "Mariner" well is a High Temperature High Pressure (HTHP) well, drilling to a total depth of approximately 5,600 meters (18,370 feet), utilizing the latest in drilling technology and it is evaluating one of the three large structures mentioned above, initially targeting 1.2 tcf of natural gas reserves identified on the first structure which has an estimated potential present value - P.V. 10% of Cdn. $1.8 billion.

El Paso Oil & Gas Canada, Inc., an indirect subsidiary of El Paso Corporation (NYSE:EP), is participating in the drilling of the "Mariner" Prospect by paying 2/3 of the costs to earn a 50% interest in the "Mariner" Prospect, with Canadian Superior retaining a 50% interest in the Block and paying 1/3 of the costs related to the "Mariner" test well. The Rowan Companies, Inc.'s ("Rowan" - NYSE: RDC) Rowan Gorilla V jack-up drilling rig, one of the largest new generation jack-up rigs in the world has been contracted to drill the well. This first "Mariner" well being drilled to the north of the eastern tip of Sable Island on the Scotian Shelf is only about nine kilometers (5 1/2 miles) northwest of Sable Offshore Energy Project's Venture natural gas producing field. This well is one of the deepest wells to be drilled in Canada over the next several months and it is located on Exploration License EL 2409, acquired by Canadian Superior in November 2001 for a work expenditure bid of Cdn. $15.5 million.

Canadian Superior is a Calgary, Alberta based oil and gas exploration and production company with operations in western Canada, offshore Nova Scotia and offshore Trinidad. The Company is one of the largest acreage holders offshore Nova Scotia, with interests in 1,293,946 acres offshore Nova Scotia (See: Canadian Superior's website at www.cansup.com to review Canadian Superior's "Marquis, Mariner, Mayflower, Marauder and Marconi Offshore Projects" and to view the "Table of Major Offshore Nova Scotia Acreage Holders" and "Offshore Nova Scotia Maps", to review information on the Company's Western Canadian operations and for information and detailed maps regarding Canadian Superior's new Trinidad "Tradewinds" Project).

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. While the Company makes these statements and projections in good faith, neither the Company nor its management or directors can guarantee that the anticipated future results will be achieved. Reference should be made to the companies' (and their affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.