Canadian Superior Posts Record 2003 Operating Results.Business Editors
CALGARY, Alberta--(BUSINESS WIRE)--May 19, 2004
Canadian Superior Posts Record 2003 Operating Results Revenues (Up 308%), Production (Up 170%), Cash Flow (Up 1,507%) - Company Poised For More Drilling Planned On "Mariner Mariner
Any of a series of unmanned U.S. space probes sent near Venus, Mars, and Mercury. Mariners 2 (1962) and 5 (1967) passed Venus within 22,000 mi (35,000 km) and 2,500 mi (4,000 km), respectively, and made measurements of temperature and atmospheric density. " Play Offshore Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography
And Drilling In Western Canada
Western Canada, commonly referred to as the West And Offshore Trinidad And Tobago Trinidad and Tobago (trĭn`ĭdăd, təbā`gō), officially Republic of Trinidad and Tobago, republic (2005 est. pop. 1,088,000), 1,980 sq mi (5,129 sq km), West Indies. The capital is Port of Spain.
Canadian Superior Energy Inc. ("Canadian Superior") (AMEX AMEX
See: American Stock Exchange :SNG SNG
1. substitute natural gas
2. synthetic natural gas )(TSX TSX Toronto Stock Exchange (TSE before April, 2002)
TSX Transfer from Stack Pointer to Index
TSX True Space Extension :SNG) of Calgary, Alberta announced today its 2003 year end operating results including record revenues, record production and record cash flow. The following is exerts from the "Message To Shareholders" in Canadian Superior's 2003 Annual Report which can be reviewed in it's entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. on Canadian Superior's website www.cansup.com by following the "FINANCIAL STATEMENTS" link button near the top left of our home page.
This news release contains forward-looking information on future production, project start-ups and future capital spending capital spending
Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . Actual 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.
Statements contained in this news release relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc future results, events and expectations are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend
v. a·mend·ed, a·mend·ing, a·mends
1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive.
2. 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.
MESSAGE TO SHAREHOLDERS
"High Impact". These two words capture the spirit of Canadian Superior's vision for development of significant value in holdings Offshore Nova Scotia, Offshore Trinidad and in Western Canada. 2003 was a busy year marked by the achievement of a series of important milestones. Offshore Nova Scotia, Canadian Superior (the "Company" or the "Corporation"), along with our joint venture partner El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. Oil and Gas Canada Inc. ("El Paso"), planned for and commenced drilling of the first "Mariner Project" exploration well directly offsetting ExxonMobil's Venture natural gas field. Spudding of this well occurred on November 20, 2003. This well was drilling less than two years after obtaining the "Mariner" exploration licence, a significant achievement that is a credit to the experienced Canadian Superior planning and technical teams. We also successfully acquired two new offshore exploration licenses, adding 370,881 acres of prime exploration territory, increasing our Offshore Nova Scotia holdings to 1,293,946 acres in six exploration licences. In Trinidad, we established a significant joint venture with the Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") encompassing attractive shallow offshore lands off the East Coast of Trinidad. We plan to increase our activities and our presence in Trinidad during 2004. Our existing Trinidad joint venture lands are on-trend with the large recently discovered BHP BHP
blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. Billiton/TotalFinaElf/Talisman Energy Angostura Angostura: see Ciudad Bolívar. and Aventura Carapal Ridge oil and gas fields and represents a new "World Class" opportunity for Canadian Superior. In Western Canada we added significant core production assets with the March 20, 2003 acquisition of El Paso's Drumheller area assets for approximately $65 million ($53.5 million net of production credits from October 1, 2002 to closing and other closing adjustments). This was one of the better acquisitions in Western Canada in 2003, with a purchase price equating e·quate
v. e·quat·ed, e·quat·ing, e·quates
1. To make equal or equivalent.
2. To reduce to a standard or an average; equalize.
3. to $20,576 per flowing boe/d, compared to recent production asset transaction prices of as much as $50,000 per flowing boe/d (Oil and Gas Investor, April 2004). The Drumheller area acquisition added significant new production and provided valuable additions to our land inventory that contain a good balance of identified conventional exploration and development targets.
Highlights of 2003 include:
- Revenues of $31.6 million, up 308% compared to 2002.
- Cash flow from operations Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $13.3 million, up 1,570%
compared to 2002.
- Record average production of 2,285 boe/d, up 170% compared
- Acquisition of a significant new core area at Drumheller,
Alberta for $65 million ($53.5 million net of
- $84 million in capital expenditures with $71.6 directed to
Western Canadian assets, $7.8 directed to Offshore Nova
Scotia Scotia (skō`shə), originally the Latin name for Ireland. In the Middle Ages, it was used to refer to Scotland, to which the Scots had migrated from Ireland. Today it is used poetically. and Trinidad activities and $4.6 million to other
- Secured agreement from El Paso for a significant farm-in on
our "Mariner Project" lands. This agreement follows up on
our 2002 "Marquis" project with El Paso and allows El
Paso, upon satisfaction of all conditions, to earn a 50%
working interest in our "Mariner" lands in return for
coverage of two-thirds of the cost of the first "Mariner
Project" exploration well.
- Secured a significant Trinidad joint venture focusing on
attractive shallow offshore lands on-trend with recently
discovered large oil and gas fields.
- Planned and commenced drilling of our second Offshore Nova
Scotia exploration well, Canadian Superior El Paso
"Mariner" I-85 exploration well, located on our "Mariner
- Drilled sixteen Western Canadian exploration and development
wells with a 94% success rate.
- In excess of $79 million in new equity financings Equity Financing
The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. completed
in 2003 to support aggressive acquisition and drilling
- Active community involvement: education, training and oil
and gas research and development in Nova Scotia; cancer
research in Alberta; and major rural sponsorship of
various projects including the Western Canadian 4H on
Parade, one of the largest 4H farm shows in Canada, and
the Calgary Stampede The Calgary Stampede, which bills itself as The Greatest Outdoor Show on Earth, is a large, non-profit festival, exhibition, and rodeo held in Calgary, Alberta for 10 days in the second week of every July. .
In managing our Offshore Nova Scotia holdings, technical and management teams from Canadian Superior and El Paso worked tirelessly tire·less
Not yielding to fatigue; untiring or indefatigable.
tireless·ly adv. and methodically me·thod·i·cal also me·thod·ic
1. Arranged or proceeding in regular, systematic order.
2. Characterized by ordered and systematic habits or behavior. See Synonyms at orderly. through to November 2003 to complete detailed planning for our first "Mariner Project" exploration well. All required Canada-Nova Scotia Offshore Petroleum Board ("CNSOPB CNSOPB Canada Nova Scotia Offshore Petroleum Board ") approvals were obtained on an aggressive schedule that required a strong level of coordination and effort from the Canadian Superior and El Paso teams. This allowed us to commence "Mariner" I-85 exploration drilling operations on time in November. The "Mariner" I-85 exploration well was drilled in a challenging high temperature, high pressure environment, utilizing the latest in drilling technology, and reached a total depth of approximately 5,408 metres (17,743 feet) to evaluate the first of three large structures identified for drilling on the "Mariner Project" exploration licence. As announced on March 11, 2004, the "Mariner" I-85 exploration well encountered gas pay in multiple zones as targeted. The factual accuracy of Canadian Superior's March 11, 2004 news release has been confirmed on numerous occasions by El Paso.
Also Offshore Nova Scotia, consistent with our stated objective of increasing our holdings in the Offshore Nova Scotia area, Canadian Superior successfully participated in the exploration licence land sale in 2003. In November 2003, the CNSOPB notified Canadian Superior that it was the successful bidder for two new exploration licences in the Sable Island Sable Island, low, sandy island, 25 mi (40 km) long and 1 mi (1.6 km) wide, off N.S., Canada, SE of Halifax. It is the exposed part of a sand shoal that stretches northeast-southwest for more than 100 mi (160 km). area close to existing discoveries. These exploration licences, named "Marauder MARAUDER. One who, while employed in the army as a soldier, commits a larceny or robbery in the neighborhood of the camp, or while wandering away from the army. Merl. Repert. h.t. " and "Marconi", cover 370,881 acres, were acquired in return for work expenditures bids aggregating to $14.1 million, and contain several excellent seismically defined prospects.
In Trinidad, during 2003 Canadian Superior was successful in securing a significant joint venture covering a large, shallow offshore licence (55,000 acres). This joint venture holding with Petrotrin has the potential to establish significant oil and gas reserves in the heart of a known hydrocarbons-bearing structural trend. Efforts to increase our presence in Trinidad continued into 2004 with our bid for Production Sharing Contracts covering two Blocks located off the east coast of Trinidad, in the Trinidad and Tobago Ministry of Energy & Energy Industries' 2003/2004 Competitive Bid Round.
In relation to financing our high impact plays, it continues to be our strategy to maintain a strong balance sheet and to minimize our own financial outlay requirements wherever possible through joint ventures with partners at different phases of the exploration cycle. Where high impact explorations expenditures require funding beyond the limits of our internally generated cash flow, we continue to successfully source equity financing at appropriate times. Even where the potential rewards are large we are not prepared to compromise our balance sheet by over-extending ourselves. By using this disciplined approach to defining value in high impact prospects, we will endeavor to ensure that we continue to realize a high level of value in any joint ventures we enter into with partners.
In Western Canada, our objective over the past year has been to increase cash flow through expanded production to support our pursuit of "home run" opportunities for shareholders. We succeeded in achieving this through the El Paso acquisition in Drumheller, and moved forward with an aggressive oil and gas development drilling program in the Drumheller area during the third quarter of 2003 to add new production. By year-end, we had achieved a 92% success rate in the drilling of thirteen new Drumheller area oil and gas wells. Of the thirteen wells drilled during the third and fourth quarters, twelve wells were completed and six wells were placed on-stream during 2003 and were producing at an estimated combined 2003 exit production rate of approximately 237 boe/d. The remaining six wells were placed on-stream early in the first quarter of 2004 and added an estimated 750 boe/d to production. Drilling activities continued into 2004 with the drilling of four successful oil and gas wells during the first quarter. Drumheller will remain the focus of our conventional exploitation activities in Western Canada in 2004. Six additional wells are to be drilled to complete the first major drilling phase of our Drumheller area exploration and development program. Attention will also shift to horizontal drilling a drilling machine having a horizontal drill spindle.
See also: Horizontal and a water flood proposed for the Mannville"I" Pool, exploration in untouched deeper drilling horizons and coal bed methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;. ("CBM CBM Commodore Business Machines
CBM Coalbed Methane
CBM Christoffel Blindenmission
CBM Condition Based Maintenance
CBM Confidence-Building Measures
CBM Curriculum Based Measurement (education)
CBM Cubic Meter ") development at Drumheller. Drumheller is ideally suited for CBM exploration and production. At recent Drumheller Area land sales, CBM acreage has gone for $250,000 per section (approximately $390 per acre) and we have approximately 108 net sections (69,120 acres) in the Horseshoe Canyon Horseshoe Canyon can refer to:
CORPORATE ACCOMPLISHMENTS DURING 2003
East Coast, Offshore Nova Scotia
- April 23, 2003: Announced that El Paso had elected to
participate with us in the drilling of a second East Coast
Offshore Exploration well. This significant farm-out
agreement allows El Paso, upon satisfaction of all
conditions, to obtain a 50% working interest in our
101,800 acre "Mariner Project" lands by committing to pay
two-thirds of the cost of the first "Mariner Project"
- August 6, 2003: Announced that necessary
Geophysical/Geological Work Authorization The right or permission to use a system resource; the process of granting access. See access control. approval had
been obtained from the CNSOPB to commence well site
surveys on the first "Mariner Project" drilling location.
- October 22, 2003: Announced the contracting of the Rowan rowan
ash tree which guards against fairies and witches. [Br. Folklore: Briggs, 344]
See : Protection
Gorilla gorilla, an ape, Gorilla gorilla, native to the lowland and mountain forests of western and central equatorial Africa. It is the largest of the apes, the males reaching a height of 5 to 6 ft (150–190 cm) with a 9-ft (144–cm) arm spread. V rig for drilling of our "Mariner Project"
exploration well. The Rowan Gorilla V is a Super Gorilla
Class Jack-up Rig designed for harsh environment drilling
operations. This rig was used in 2002 for the drilling of
our first exploration well on the "Marquis Project" lands.
- November 13, 2003: Announced the acquisition of Land Parcels
#2 and #4 at the CNSOPB November 2003 Land Sale for Work
Expenditure Bids aggregating to $14.1 million. This
acquisition added 370,881 acres to our Offshore Nova
Scotia land holdings and is close to existing Sable Island
discoveries. The Company is currently one of the largest
Offshore Nova Scotia acreage holders, third largest among
public companies, with interests in 1,293,946 acres.
- November 20, 2003: Announced the commencement of drilling of
the Canadian Superior El Paso "Mariner" I-85 exploration
well approximately nine kilometres northwest of the Sable sable, species of marten, Martes zibellina, found in Siberia, N European Russia, and N Finland. This carnivorous mammal is highly valued for its thick, soft fur, which is dark brown or black, sometimes with white underparts and sometimes flecked with silver.
Island Energy Project's Venture gas field.
Trinidad and Tobago, Offshore Trinidad
- October 8, 2003: As a result of successful negotiations, we
announced the establishment of a significant joint venture
with Petroleum Company of Trinidad and Tobago Limited. The
joint venture, known as our "Tradewinds Project", covers
55,000 acres of near shore acreage in the Mayaro
Bay/Guayaguayare area, off the East Coast of Trinidad, and
is a "World Class" opportunity for Canadian Superior
on-trend with the recently discovered BHP
Billiton/TotalFinaElf/Talisman Energy Angostura and
Aventura Carapal Ridge oil and gas fields. The Angostura
field has estimated recoverable reserves of 160 million
barrels of oil and 1.75 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. cubic feet of natural
gas. The Carapal Ridge licence has estimated proven and
probable reserves of 0.5 trillion cubic feet of natural
Western Canada January 13, 2003: .....Announced an agreement to acquire 5.5 million boe of established reserves in the Drumheller area from El Paso. January 20, 2003: .....Commencement of drilling of the first of two wells during 2003 as part of a multi-well program planned for our East Ladyfern acreage. March 20, 2003: .......Closing of the Drumheller acquisition for $65 million ($53.5 million net of adjustments). July 2003: ............Commencement of the first phase of exploration and development activities on our Drumheller area holdings.
Thanks to the strong support of our shareholders, in excess of $79 million in new equity capital was raised in a series of separate successful financings during 2003. These financings were critical achievements required to ensure that our balance sheet was properly strengthened, enabling us to pursue aggressive acquisitions and drilling activities.
February, 2003: .......$21.4 million at $1.60 per common share March, 2003: ..........$13.6 million at $1.50 per Unit consisting of one common share and 1/2 of a $2.00 common share purchase warrant July 2003: ............$1.5 million at $1.90 per flow-through share November, 2003: .......$15.6 million at $3.25 per flow-through share December, 2003: .......$22.0 million at $3.04 per common share and $1.15 million at a $3.35 average price per flow-through share (or flow-through special warrant) Warrants and Options: .$4.0 million, exercised at $1.42 per share average price
During the year, we maintained a strong balance sheet and exited the year with net debt of only $3.74 million, as compared to $5.5 million at the end of 2002.
CORPORATE RESPONSIBILITY AND COMMUNITY INVOLVEMENT
Canadian Superior is a strong advocate of direct corporate involvement in communities contributing to, or affected by, its activities. We believe that direct community involvement enhances our ability to properly achieve common goals. Significant efforts are exerted to ensure that we have a responsible and responsive corporate presence. We conduct regular discussions with community representatives and stakeholders Stakeholders
All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. and we take care to ensure that planned activities are fully explained. Our attitude of direct involvement with local communities is consistently supported by sponsorship of community programs. In 2003, we along with El Paso made $50,000 in contributions to training and education programs at Post Secondary Institutions in Nova Scotia. This has contributed to education and training, as well as to oil and gas related research and development activities, for students enrolled in undergraduate education undergraduate education Medtalk In the US, a 4+ yr college or university education leading to a baccalaureate degree, the minimum education level required for medical school admission; undergraduate medical education refers to the 4 yrs of medical school. Cf CME. programs in Nova Scotia. We have provided Education, Training, and Research and Development funds to Dalhousie University Dalhousie University (dălhou`zē), at Halifax, N.S., Canada; nonsectarian; coeducational; founded 1818 by the 9th earl of Dalhousie. Except for a few years between 1838 and 1845, Dalhousie did not function as a university until 1863. , St. Francis Xavier Francis Xa·vi·er , Saint
See Saint Francis Xavier. University, the University College of Cape Breton The term Cape Breton appears in several different things: Geographic locations
In Western Canada in Alberta, we committed $120,000 in cancer research donations and we contributed in excess of $200,000 to various other urban and rural communities, charitable organizations This article is about charitable organizations. For other uses of the word charity, see Charity.
A charitable organization (also known as a charity) is an organization with charitable purposes only. and sponsorships. The Corporation supported a major cancer research project at the University of Calgary. During 2003, the Corporation also supported the Calgary Chinook Chinook, indigenous people of North America
Chinook (shĭnk`, chĭ–), Native American tribe of the Penutian linguistic stock. Scout Foundation, the Rockyview General Hospital Rockyview General Hospital (RGH) is a large hospital in Alberta, Canada. It is located in the city of Calgary, on the shores of the Glenmore Reservoir and is administered by the Calgary Health Region. , STARS, the Alberta Cancer Foundation, the IWK IWK Indah Water Konsortium Sdn Bhd (Malaysia)
IWK I Was Kidding Children's Hospital A children's hospital is a hospital which offers its services exclusively to children. The number of children's hospitals proliferated in the 20th century, as pediatric medical and surgical specialties separated from internal medicine and adult surgical specialties. Foundation, the Canadian Diabetes Association The Canadian Diabetes Association is an organization whose mission is to promote the health of Canadians through diabetes research, education, service, and advocacy. Founded in 1953, it is active in more than 150 Canadian communities. , the Nova Scotia Discovery Centre, the Nova Scotia Nature Trust, the Nova Scotia Safety Council and Ducks Unlimited Ducks Unlimited is an international non-profit organization dedicated to the conservation of wetlands and associated upland habitats for waterfowl, other wildlife, and people. It currently has approximately 775,000 members, mostly in the United States and Canada. , among others. The Company is also a major sponsor of the Calgary Stampede and 4H on Parade, the latter being one of the largest rural youth agricultural shows An Agricultural Show is a public event showcasing the equipment, animals, sports and recreation associated with the occupations of agriculture and animal husbandry. The largest of these comprise a Livestock show in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . We intend to actively continue with support for community and charitable programs and initiatives and we encourage our staff and management to do the same.
In Trinidad, we intend to interact with and support local communities and programs and to generally conduct our activities in a manner consistent with our objective of being viewed as a responsible and responsive Corporation.
2004 CORPORATE GROWTH STRATEGY
Our corporate growth strategy during 2004 will be directed at, and framed by, the following six key items:
1. We intend to continue forward with further drilling of our
"World Class" Offshore Nova Scotia holdings.
- We intend to proceed with further drilling on our "Mariner
Project" lands. Three large prospective structures have
been identified with only one drilled to date.
- We plan to conduct 3-D seismic acquisition on the "Marquis"
lands with the objective of advancing a second
- In relation to our "Mayflower Mayflower, ship
Mayflower, ship that in 1620 brought the Pilgrims from England to New England. She set out from Southampton in company with the Speedwell, " lands, we are working to
secure a joint venture partner to shoot seismic and we
intend to move ahead with drilling targets identified on
the "Mayflower" block as quickly as possible. A
Confidentiality Agreement is in place between Canadian
Superior and a potential partner.
- In relation to "Marauder" and "Marconi", we have identified
a number of excellent seismically defined prospects and we
intend to seek further joint venture partners to shoot
additional seismic aimed at establishing drilling
locations, and to complete the necessary front end
regulatory approval activities in support of our planned
2. We will continue to leverage the expertise we have
developed Offshore Nova Scotia into other "World Class"
basins. An example of this is the securing of a
significant joint venture with the Petroleum Company of
Trinidad and Tobago Limited, covering 55,000 acres of near
shore acreage, a "World Class" opportunity. Efforts to
increase our presence offshore Trinidad opportunities will
continue throughout 2004.
3. We will continue development of our strategic core
production assets in the Drumheller area of Alberta. With
the near completion of our first phase of Drumheller area
drilling operations, our attention will shift to
horizontal drilling and a proposed waterflood for the
Mannville"I" Pool, exploration in untouched deeper
drilling horizons and CBM development.
4. Further exploration and development in high impact
exploration areas such as East Ladyfern will be conducted
5. We will continue to ensure that balance sheet strength is
maintained in order to properly balance high impact
6. We are on-watch for opportunities to expand our core
corporate interests through strategic acquisitions.
OUTLOOK - 2004 and Longer Term
Our strategic Corporate Objectives for sustainable growth are:
- To continue to grow Western Canadian cash flow and
production base focusing on the Drumheller area and high
impact Western Canadian plays Canada has a vibrant theatre scene with notable experimental, fringe and other alternative forms. Indeed, the largest fringe festival in North America is the Edmonton International Fringe Festival.
This is an incomplete list of plays created by Canadian playwrights.
- To maintain a strong balance sheet
- To target exiting 2004 with production of 5,000+ boe/d of
oil, NGLs and natural gas
- To continue forward with drilling and development of "World
Class" projects Offshore Nova Scotia and Offshore Trinidad
to deliver home runs for shareholders
- To continue to expand underlying value for shareholders
through the drill bit and by strategic acquisitions
We expect to continue with programs initiated in 2003 to increase Western Canadian cash flow and production focusing on the Drumheller area and high impact Western Canadian plays. These activities will complement the high impact opportunities we intend to continue to pursue for our shareholders Offshore Nova Scotia and in Trinidad. This strategy, complemented by the continued strong support of our shareholders, evidenced in the consistently active trading of our shares, combined with buoyant Buoyant
The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength.
These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. equity capital markets during 2003, allowed us to fund high impact capital projects without compromising the integrity of our balance sheet. In particular, it allowed us to optimize optimize - optimisation our position in our "Mariner Project" working interest of 50% by providing the money required to fund a one-third share of estimated costs of the first "Mariner" exploration well that spudded on November 20, 2003. As a result, Canadian Superior successfully ended 2003 holding assets with "World Class Home Run" potential Offshore Nova Scotia and in Trinidad, and we expanded our solid Western Canadian cash flow and asset base.
Over the longer term, we intend to continue to increase the value of our corporate assets through the drill bit, by strategic acquisition, and by continuing to maintain high working interests and a strong balance sheet, while aggressively developing our newly acquired Trinidad interests and our "World Class" East Coast assets. We expect solid results to be delivered from the exciting opportunities being pursued by our Company. Over the last three years our average share price growth has been 63% per year. From January 1, 2003 to December 31, 2003 the share price grew over 2 fold, an increase of 117%. During 2003 we have been one of the top performers on the AMEX and TSE See Tokyo Stock Exchange.
1. See Tokyo Stock Exchange (TSE).
2. See Toronto Stock Exchange (TSE). . The average trading volume Trading volume
The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. for our common shares on the two exchanges was approximately 570,000 shares per day. We are confident that our continued hard work, along with the support of our shareholders will result in the achievement of further superior returns for our shareholders as we remain focused on our objective of growing the Corporation and continuing to add value for our shareholders.
Showing or marked by proper respect.
re·spectful·ly adv. submitted on behalf of Canadian Superior Energy Inc.
CANADIAN SUPERIOR ENERGY INC.
Greg S. Noval
President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.
May 7, 2004
2003 HIGHLIGHTS December 31 2003 2002 Financial ($000's except per share amounts) Gross Production Revenue $ 31,618 $ 7,741 Cash Flow from Operations $ 13,347 $ 799 Per Share $ 0.16 $ 0.01 Net Earnings (loss) $ (312) $(28,173) Per Share $ (0.00) $ (0.51) Capital Expenditures $ 83,995 $ 55,025 Nova Scotia Offshore Term Deposits $ 13,839 $ 12,032 Net Debt 3,744 5,484 Shares Outstanding at Year-end 96,101 65,032 Operating Average Production Natural Gas (mcf/d) 10,210 4,725 Oil & NGLs (bbls/d) 583 59 Barrels of Oil Equivalent (boe) per day 2,285 846 Average Selling Price Oil & NGLs ($/bbl) $ 33.03 $35.69 Natural Gas ($/mcf) $ 6.60 $ 4.04 Reserves (Gross)(2) Total Proven Natural Gas (mmcf) 17,477 9,043 Oil & NGLs (mbbl) 1,218 139 Barrels of Oil Equivalent (mboe) 4,131 1,646 Total Proven and Probable Natural Gas (mmcf) 24,690 24,790 Oil & NGLs (mbbl) 2,044 2,686 Barrels of Oil Equivalent (mboe) 6,159 6,818 Net Undeveloped Land (acres) Offshore Nova Scotia (1) 1,293,946 923,065 Western Canada (2) 147,533 85,518 Wells Drilled Gross 17.0 17.0 Net 15.1 16.5 (1) Includes deep rights on "Marquis" lands (2) December 31, 2002 values do not include the Drumheller asset acquisition which closed on March 20, 2003 Canadian Superior Energy Inc. Suite 3300, 400 - 3rd Avenue S.W. Calgary, Alberta Canada T2P 4H2