Canadian Superior Energy Inc. Enters Agreement to Raise US $10 Million Through Private Placement of Preferred Share Units.

CALGARY, Alberta -- Canadian Superior Energy Inc. (TSX:SNG) (AMEX:SNG) ("Canadian Superior") of Calgary, Alberta, Canada announced today that it has entered into an agreement for the private placement in the amount of US $10,000,000 by way of the issuance of Units consisting of 5% US Cumulative Redeemable Convertible Preferred Shares (the "Preferred Shares") and Common Share Purchase Warrants. Each Preferred Share will be convertible into forty Common Shares of Canadian Superior (4,000,000 Common Shares in aggregate) at a price of US $2.50 per Common Share. If Canadian Superior elects, it also has the option to pay the quarterly dividend by way of issuance of Common Shares at market, based on a 6% annualized dividend rate in lieu of the 5% annualized cash dividend rate. In addition, the Preferred Shares are redeemable and retractable five years from the date of issue or earlier, subject to earlier redemption or retraction in certain events. 10,000 Units, each consisting of 10 US $100 Preferred Shares, along with 800,000 Common Share Purchase Warrants are being issued to West Coast Asset Management, Inc. (and/or its affiliates), currently the holder of 6,793,680 Common Shares of Canadian Superior, in consideration for the transaction, subject to customary terms and conditions on closing and subject to regulatory approval. Closing is expected on or before December 29, 2005. The proceeds from the offering will be used by Canadian Superior for the drilling and development of its holdings offshore Trinidad and Tobago. The Warrants comprising part of the Units are exercisable for a period of thirty (30) months from the date of issue at an exercise price of US $3.00 per Common Share. In addition, the Parties reserve the right by agreement to increase the private placement from US $10,000,000 to US $15,000,000 between now and January 31, 2006.

Canadian Superior is a Calgary, Alberta based oil and gas exploration and production company with operations in Western Canada, offshore Trinidad and Tobago and offshore Nova Scotia. See Canadian Superior's website at www.cansup.com to review Canadian Superior's Western Canadian Operations, Trinidad and Tobago holdings and the Company's offshore Nova Scotia interests.

This news release contains forward-looking information on future production, project start-ups and future capital spending. Actual results 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.

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 and other factors which may cause the actual results, performance 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 Corporation's annual report on Form 40-F on file with the U.S. Securities and Exchange Commission.

Canadian Superior Energy Inc. (TSX:SNG) (AMEX:SNG)