Canadian Superior Energy (SNG)

[califax]

Canadian Superior Energy Q4 Loss Widens

3/30/2010 10:39 AM ET
http://www.rttnews.com/ArticleView.aspx?Id=1255433

(RTTNews) - Diversified energy company Canadian Superior Energy Inc. (SNG.TO: News ,SNG: News ) reported Tuesday a wider loss for the fourth quarter, reflecting significant declines in commodity prices and production volumes.

For the fourth quarter, the Calgary, Alberta-based company's net loss widened to $63.9 million or $0.32 per share from $18.19 million or $0.11 per share in the previous year.

Petroleum and Natural Gas sales, net of transportation dropped 25% to $9.93 million from $13.21 million in the year-ago quarter.

The company noted that the decrease was mainly due to significant declines in commodity prices, natural declines in production volumes and the company's inability to tie-in the successful wells from the 2008 drilling program due to limited capital available during CCAA.

Average production of Natural Gas decreased to 14,428 mcf/d from 15,726 mcf/d in the previous year. Oil and NGL average production was 653 bbls/d, up from 599 bbls/d in the prior-year quarter.

Western Canada average daily production for the quarter averaged 3,058 boe/d.

Average selling price of Natural Gas declined to $4.82 per mcf from $7.22 per mcf in the previous year. Oil and NGL's average selling price increased to $56.73 per bbl from $50.25 per bbl reported a year ago.

Capital expenditures for the quarter were $19.36 million, down from $42.89 million reported in the preceding year. The company said capital expenditures planned for the balance of 2010 would be around $25 million with near-term focus on the Drumheller and Kaybob core areas.

For the full year, the company's net loss widened to $53.32 million or $0.30 per share from $23.76 million or $0.16 per share in the prior year. Petroleum and Natural Gas sales, net of transportation dropped 55% to $33.77 million from $74.46 million in the year 2008.

Marvin Chronister, chairman of the board said, "While the Company has been through a very difficult period during 2009, we believe it has emerged and continues to evolve as a much stronger company than it has ever been. We are aggressively pursuing our growth strategy and development of our assets. Therefore, we believe the best is still to come for our shareholders."

Further, the company said it is evaluating its entire acreage position in anticipation of an aggressive, multi-year drilling program beginning in the third quarter of 2010.

SNG closed Monday's regular trading at $0.56 on the AMEX, while SNG.TO ended at $0.59.