Canadian Superior Energy Inc. and its partners, BG Group Inc. subsidiary BG International Ltd. and Challenger Energy Inc., have reported a new natural gas discovery about 60 miles off Trinidad.

The discovery was made at the partners’ Victory well, which is located about 100 kilometers off the eastern shore of Trinidad. The well is part of an initial three-well exploration program in Intrepid Block 5(c), according to Canadian Superior Chairman Greg Noval. The producers, he said, “are encouraged by the initial test results in the first zone and will be moving up hole in the well to test at least one further horizon.”

According to Canadian Superior CEO Craig McKenzie, the partners completed an extended flow testing of the first zone to be tested in the well, which “measured flow rates averaging between 40 and 45 MMcf/d. The well also tested high-gravity condensate of approximately 30 barrels per MMcf of gas produced.”

The flowing wellhead pressure on a restricted basis and the bottomhole pressures “are comparable or better than other producing wells and fields in the immediate area,” McKenzie said.

“This is a discovery of gas — that’s it,” BG Group spokesman Neil Burrows told The Globe and Mail newspaper in Toronto. “There’s more evaluation work needed.” Burrows did not speculate about the potential reserves, and he said “commercial viability” still has to be established. “Obviously, it’s early days — but as with all discoveries, it’s good news.”

The producers plan to further analyze the initial test results, “and we will now focus on the next stage of the testing program by moving up hole to complete at least one more zone in the well before moving the rig to our next prospect on Block 5(c) and spudding the Bounty well,” McKenzie said. “This information will allow Canadian Superior and the other participants in the well to move forward with detailed reserve analysis of the discovered resource.”

Canadian Superior is paying 26.66% of the block’s exploration costs to maintain a 45% working interest, BG International is paying 40% of the costs to maintain a 30% working interest, and Challenger is paying 33.33% of the costs for a 25% working interest.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.