Continental Southern Resources Acquires 4.5% Interest in Potato Hills Deep Gas Field for Cash and Stock Valued at $15.75 Million.

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--May 27, 2003

-- Initial Well in Potato Hills Deep Gas Project Indicates Significant Discovery Based on Electric Logs, Other Data

-- Continental Has the Right to Participate in 4.5% of All Future Wells in Potato Hills

-- Continental Joins Preferred Partner Group of the GHK Company, With Rights to Purchase up to 10% of All Future Projects Generated by GHK, Including the Indian Prospect in Western Oklahoma 

Continental Southern Resources, Inc. (OTC:CSOR) ("Continental") announced today that it has completed an acquisition of interests in BWP Gas, LLC, which owns a 4.5% interest in the GHK Mary #2-34 well in the Potato Hills Deep Gas Project (the "Mary"), a project operated by The GHK Company headquartered in Oklahoma City, Oklahoma.

Continental also has the right to participate in a 4.5% interest of all additional wells drilled in the Potato Hills Deep Gas Project, and the right to purchase up to a 10% interest in all projects generated or identified by GHK in the future. Continental paid total consideration valued at $15,750,000 in cash, common stock and warrants, which includes a contingent issuance of 2,500,000 shares of common stock issuable upon the completion and initial commercial production of the Mary, the presentation of a development plan for the remainder of the Potato Hills Deep Gas Field, and the commencement of a subsequent exploration or development well in the Potato Hills Deep Gas field. This transaction allows Continental to join a preferred group of partners of The GHK Company, which includes a select group of private investors and one NYSE listed public company.

Continental will now have approximately 40 Million common shares outstanding after taking into account the above considerations.

The Mary - GHK has reached total drill depth of 20,628 feet in the Mary well and by all indications has made a significant deeper discovery in the Potato Hills Gas Field, already the site of one of the largest field discoveries of natural gas (proven reserves of 185 BCF) in the United States in the last ten years in the shallow Potato Hills Field. After encountering significant gas bearing sands in the sub-thrusted Jackfork Sandstone formation between 18,200 and 19,800 feet, GHK ran a suite of conventional electric logs (Gamma Ray, Resistivity, Porosity and Neutron/Density) and due to the extremely positive results, in addition to the 25 to 35 foot gas flares that were occurring in the Mary, decided to terminate drilling operations early prior to reaching the original deeper objective at 24,000 feet in the Arbuckle formation. The logs indicate over 200 feet of potential pay with probable fracture porosity in several of the sub-thrusted Jackfork zones. Additionally, the uppermost sandstone member at 18,235-365 feet has about 50 feet of net pay and exhibits an invasion profile indicative of permeability as well as natural fracture indicators. This same upper sandstone member correlates to the main producing reservoir in the prolific shallow Potato Hills Field, which has already produced 125 BCF at 5,000 feet in just 57 months. All of the deeper Jackfork zones appear to be overpressured with indicated bottom hole pressure ("BHP") of 11,600 psi as compared to the normally pressured shallow field pay at 5,200 feet with an original BHP of about 2,200 psi. GHK is currently awaiting completion operations after cementing 7 inch production casing in the Mary.

Stephen Harrington, President of Continental, stated: "We are pleased to add these great GHK opportunities in Oklahoma to our other excellent natural gas reserve prospects in Louisiana, Mississippi and Thailand. We are very encouraged by the data we have seen to date in the Mary well. We believe that the Potato Hills Deep Gas Field is as large a natural gas reserve opportunity as is available anywhere in the onshore United States. Over the next few weeks and months we will have multiple drilling projects underway and we hope to announce significant additional discoveries and additions to reserves, as the drill tests confirm the geological predictions, the initial flow tests, and other indicia, as generated by our outstanding operating partners."

Continental has world class operating partners in its exploration projects. In addition to GHK for the Potato Hills Deep Gas and Indian Prospects in Oklahoma, Continental has Amerada Hess (NYSE: AHC) as the operating partner for its Phu Horm, Thailand project where Continental owns approximately 9% of the 2 Million acre project. Clayton Williams Exploration (NASDAQ:CWEI) is the operating partner for the Knox Miss Project in the Black Warrior Basin in Mississippi, consisting of 125,000 gross acres, in which Continental has a 50% interest.

About The GHK Company: GHK has discoveries in the Anadarko Basin of western Oklahoma and the Texas Panhandle and in the Ouachita fold and thrust province of eastern Oklahoma and western Arkansas. Since GHK's inception, it has pioneered deep, high-pressure natural gas development in the Anadarko basin. GHK has successfully drilled and produced many of the world's deepest and highest pressure natural gas wells. GHK has drilled and operated 148 wells, a majority below 15,000 feet, with an overall success ratio of 80%. GHK has directed over $1 Billion in expenditures for natural gas development, discovering over 3 TCF of natural gas, which would be worth $18 Billion at current $6/MCF natural gas prices.

About Continental Southern Resources, Inc.: CSOR has a 4.5% interest in Oklahoma's Potato Hills Deep Gas Project operated by The GHK Company; an option to purchase a 10% interest in the Indian Prospect, an ongoing 21,000 foot Hunton test in the deep Anadarko Basin of Western Oklahoma, operated by The GHK Company, currently at a drill depth of 7,000 feet; a 9% interest in Thailand's Phu Horm project, operated by Amerada Hess (NYSE: AHC), with the initial exploration well at a drill depth of 2,695 meters, and which Continental hopes to be able to announce results shortly after completion of open hole and production testing. In addition, Continental has a 50% interest in the Knox Miss Project on 125,000 gross acres in the Black Warrior Basin in Northern Mississippi and Alabama, operated by Clayton Williams Exploration (NASDAQ: CWEI); a 40% interest in the Hell Hole Bayou in Louisiana, which has already drilled two initially unsuccessful exploration wells, but which Continental believes contains several remaining prospects on approximately 1,600 acres that Continental intends to pursue over the next year. Continental also owns a 25% interest in Louisiana Shelf Partners, L.P. which owns shallow and deep prospects located on 3,600 acres in Cameron Parish in offshore Louisiana, and which should be drilling its initial exploration well in the next 30 days. Continental has also identified two other prospects which it will have an option to purchase up to 10% from GHK, the Big O Prospect, a bypassed fractured shale gas play in the Texas-Oklahoma panhandle region, and the Mountain Front Prospect, along the frontal Wichita Mountains of Western Oklahoma.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project,'' "intends,'' "expects,'' "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial position to differ materially from those included within the forward-looking statements. These factors include, but are not limited to, the Company's properties producing oil and gas in commercial quantities, the absence of a track record of developing successful properties, the Company's ability to generate additional financing, as well those factors set forth in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.