Canadian Superior Energy Inc. Announces Record Financial Results for First Six Months of 2001.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Aug. 30, 2001

Canadian Superior Energy Inc. (TSE:SNG.) ("Canadian Superior") of Calgary, Alberta announced today that it achieved record financial and operating results for the six-month period ending June 30, 2001.

Financial Highlights of First Six Months of 2001

During the six-month period ending June 30, 2001, net income reached a record level of $8,883,551, which included a pre-tax gain on the sale of the Company's Waterton properties of $13,209,936. Net income also took into account non-recurring costs of $706,973 and a provision for future income taxes primarily related to the Waterton asset disposition of $4,622,641.

Excluding these items, income for the six-month period was $1,003,229, which is up 206% from the $327,888 reported in the similar period in 2000. During the second quarter of 2001, revenue increased to $1,416,835, up 130% from the $615,632 reported in the same period in 2000. For the six months ended June 30, 2001, revenue was $3,233,495, up 122% from the $1,457,541 reported in the same period in 2000. Income from operations for the six months was $669,533, up 128% from the $293,218 reported in the same period in 2000. Cash flow from operations for the second quarter was $337,184 representing a 225% increase over the $103,574 reported in the second quarter of 2000. For the six months ended June 30, 2001, cash flow was $1,425,903, up 147% from $576,693 reported in 2000.

The significant increases to cash flow and net income were the result of strong commodity prices during the period, new low cost production brought onstream in Western Canada and strategic asset sales. Capital expenditures during the period reached a record level of $10,347,813, a significant increase over the $324,517 expended in the same period in 2000. These expenditures resulted in several new operated natural gas discoveries and several new operating areas having been established by the Company.

In addition to the Company's achievements in Western Canada, which were focused on cash-flow generation and earnings, Canadian Superior moved forward with drilling plans for later this year on its 100% owned "Marquis Prospects" offshore Nova Scotia. During the second quarter of 2001, Canadian Superior completed the acquisition of 1,100 kilometres of high-resolution seismic coverage over the Company's offshore Nova Scotia "Marquis Prospects" and 700 kilometres of additional high-resolution seismic data in the immediate area.

The high-resolution seismic data was shot at a cost of $2.5 million to finalize the drill-site locations on two world-class prospects on Canadian Superior's 100% owned "Marquis Blocks" on the Scotian Shelf offshore Nova Scotia. Canadian Superior President Greg Noval said in Calgary today, "The first drill site will be selected prior to the end of September and Canadian Superior is currently finalizing, with a major industry player, drilling plans for later this year on what is arguably one of the most exciting prospects in the Atlantic."

At the end of the second quarter of 2001, Canadian Superior was debt-free and had cash on hand of $24.5 million. The Company said that its Western Canadian exploration and development program was on track for budgeted expenditures of $20 million during 2001.

Outlook

"The first six months of 2001 was a very exciting time for Canadian Superior, as the Company proceeded toward implementing its strategy focusing on developing natural gas plays in Western Canada alongside its world-class exploration project offshore Nova Scotia.

This is a very opportune time for gas-oriented, debt-free companies such as Canadian Superior. The recent decline in commodity prices will create several opportunities for cash rich Company's like Canadian Superior and we are poised to take advantage of these opportunities with our strong balance sheet and focused management team," Noval said.

Canadian Superior is a Calgary, Alberta based oil and gas exploration and production company.