Calgary-based Canadian Superior Energy Inc. has sold its 10% interest in its Waterton area assets in the foothills of southwest Alberta to Hunt Oil Co. of Canada for C$18 million. The assets averaged approximately 2.5 MMcf/d in the past year and include a 10% working interest in 50,000 gross acres of undeveloped land.

“The non-operated production and non-operated lands being sold by Canadian Superior are non-core assets, and they are being sold to Hunt for top dollar,” said Richard Watkins, Canadian Superior’s vice president of corporate development. He said the sale’s proceeds would be used for funding drilling this year on its Marquis blocks located on the Scotian Shelf offshore Nova Scotia.

Earlier this year, Canadian 88 Energy Corp. entered into an agreement with Hunt to sell its Waterton area assets, including its 90% jointly held interests with Canadian Superior, and Canadian 88’s 100% interest in its C$33 million Waterton area regional sour gas gathering pipeline to Hunt for C$112 million (see Daily GPI, Feb. 28).

In a statement clearly designed to appeal to Canadian 88 shareholders, Watkins said Tuesday that “Canadian Superior’s asset sale to Hunt recognizes the true value of the combined Waterton assets, which are estimated at over C$200 million. Canadian Superior has always maintained that Canadian 88 didn’t get full value when it sold off its Waterton assets. In Canadian Superior’s opinion, the Canadian Superior transaction reflects the undervalued nature of Canadian 88’s entire asset base and a severe management problem at Canadian 88 related to the inability of Canadian 88’s Duke [Energy] appointed senior management and Duke controlled board of directors to properly enhance Canadian 88 shareholder value.”

In May, Canadian 88 rejected a hostile takeover bid from Canadian Superior Energy Inc. after stockholder Duke Energy, which owns 20% of Canadian 88 shares, said it did not support the proposal (see Daily GPI, May 11). Canadian Superior, begun by Canadian 88 founder Greg Noval, is less than one-tenth the size of Canadian 88, but nevertheless, it launched its takeover in April (see Daily GPI, April 27). Noval resigned from Canadian 88 last year.

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