Board of Directors

c/o Mr. Alexander Squires, Director and Chair of the Audit Committee

Canadian Superior Energy Inc.

3200, 500 – 4th Ave S.W.

Calgary, Alberta T2P 2V6



To the Board of Directors of Canadian Superior,



On February 11, we requested information on Canadian Superior Energy Inc.’s (“Canadian Superior” or the “Company”) plans to monetize a portion of its Block 5(c) assets in Trinidad and Tobago. We have received no response to our request, and the Company’s shareholders have not been updated in any material way on the Company’s financial position or its plans since the issuance of the September 30 financial statements on November 18, 2008, notwithstanding several significant recent developments. Since our letter, the Company’s Trinidad and Tobago assets have been placed in receivership by one of its development partners, the Company has received a repayment demand from its lender, Canadian Western Bank, and both Canadian Superior and its partner in Trinidad and Tobago, Challenger Energy Corp., have been granted protection under the Companies’ Creditors Arrangement Act in Canada.



In order to seek options on behalf of the Company and its shareholders, we have held discussions with various entities that could provide the capital required to cure the Company’s outstanding defaults. We are encouraged by these discussions and believe they represent realistic and viable options for the Company. We further believe these financing alternatives provide for a better solution for Canadian Superior shareholders and creditors than those publicly indicated by the Board as under consideration. We caution however that based on our views and feedback from other capital providers, such financing alternatives will require significant changes in the governance and management of the Company. We believe that such changes would be in the best long term interests of the Company and must be properly evaluated by the Board. In order for the Company to avail itself of these options in the current circumstances, the Company needs to act extremely expeditiously and move beyond the current misguided sole focus on monetizing Block 5(c).



We confirm that we have solidified the recruitment of our director candidates in advance of presenting our slate to the Company’s Annual General and Special Meeting of Shareholders on June 26, 2009.



Palo Alto Investors requests a meeting with the Board of Directors to discuss our plans to recapitalize the Company, satisfy outstanding obligations, and ensure the retention of the strategically important Block 5(c) assets in Trinidad and Tobago. We would also share with you our views on critical governance and management changes at that time.



In light of current circumstances, we request a phone meeting with the Board no later than Monday, March 16, 2009. We look forward to your response.



Sincerely,



David J. Anderson

Palo Alto Investors, LLC