Canadian Superior Energy, Inc. (AMEX: SNG) - building the potential

Canadian Superior Energy, Inc. (AMEX: SNG) explores and develops oil and gas properties. The company operates in Canada, Offshore Trinidad and Tobago and Offshore Nova Scotia.

The company's stock spiked up nearly 20% over the last few days, as a result of their announcement concerning the latest drilling achievements. The company is engaged in the drilling of a series of high-impact wells off the shores of Trinidad and Tobago. According to their announcement of May 7th, they should reach maximum drilling dept of 18 thousand feet in one of these wells over the coming month.

This sounds like promising news considering that the company's current activities are not sufficient to make them profitable. Canadian Superior's loses for the last quarter totaled nearly $9.2 million despite an increase in operating revenues. According to their latest SEC filing, the company only has $13 million in cash and their outstanding current liabilities totaled $40 million. However we should get acquainted with their operating results for the first quarter of 2008 to get a better idea what position the company really is in today.

We state that because over the first quarter of 2008 Canadian Superior has acquired Seeker Petroleum Ltd. This acquisition added to the company's drilling portfolio. Canadian Superior had 9 wells planned to drill in the first quarter of 2008 and with the acquisition of Seeker Petroleum, added two more. Also the company stated on February 12th that their production rate had increased 14% since last fall.

Their progress to date is best summarized by the CEO of Canadian Superior, Mr. Craig McKenzie: "Canadian Superior's strategy is to grow our international business, as evidenced by our recent natural gas discovery and ongoing drilling programme of exploration wells offshore Trinidad, and to grow our Western Canadian production and cash from operations through the 'drill bit' and by selective, accretive acquisitions. Our objective is to increase shareholder value through a combination of grassroots exploration, strategic acquisitions and subsequent exploitation - both internationally and domestically."

The company seems to be executing their strategy quite well. If their expectations are met Canadian Superior's shareholders should expect some nice returns.

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