Canadian Superior Energy Inc. Announces Non-Brokered Financing of Up to CDN$50 Million

DEC 18, 2009 - 12:45 ET

"CALGARY, ALBERTA--(Marketwire - Dec. 18, 2009) - Canadian Superior Energy Inc. ("Canadian Superior" or the "Company") (TSX:SNG) (NYSE Amex:SNG) is pleased to announce that it intends to raise up to CDN$50,000,000 through a non-brokered private placement issue (the "Private Placement") of up to 96,153,846 common shares ("Common Shares") at CDN$0.52 per Common Share which is the Market Price as of December 16, 2009. Market Price has the meaning ascribed thereto in the TSX Company Manual.

Treherne Resources Ltd. ("Treherne"), a private company controlled by Mr. Clay Riddell, has subscribed for CDN$20,000,000 of the Private Placement (the "Treherne Subscription"). The Company has offered a position on its Board of Directors to Mr. Riddell, or another Treherne representative, subject to approval of such representative by the Company's Board of Directors, upon the closing of the Private Placement and the Treherne Subscription. The new director will be announced after closing of the Private Placement and the Treherne Subscription.

The Common Shares issued pursuant to the Private Placement are subject to a four month plus one day hold from the date of closing of the Private Placement in accordance with applicable Canadian securities legislation. Closing of the Private Placement is expected to occur on or about January 14, 2010 and is subject to receipt of all necessary regulatory approvals and other customary conditions.

Proceeds from the Private Placement will be used for the Company's exploration and development activities in its domestic and international operations and for general corporate purposes. Jennings Capital Inc. is acting as financial advisor to the Company."

http://cnrp.ccnmatthews.com/client/canadian_superior_energy/release.jsp?actionFor=1093322

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This appears to be good news at face value if Traherne Resources Ltd. is acquiring the shares for long term investment purposes to see Canadian Superior Energy grow in value (regardless of the dilutive effect that this will have on the existing share holders going forward). It represents a vote of confidence in Candian Superior Energy going forward and it will have the effect of breathing new life into the company which has been in the doldrums and out of the public eye since successfully leaving CCAA protection which seems to have attached a stigma to SNG's share price. Hopefully this acquistiion by Traherne Resources will act as a catalyst to jumpstart SNG's shares to a higer value and add more liquidity to the marketplace. It also represents a 10,400,000 share block of shares to offset the other large shares holders: Palo Alto Investors Inc (15,002,000), Steelhead Partners Lic. (11,101,615), West Coast Asset Management (7,908,020), Matlinpatterson Capital Management (16,646,994), and Blackrock Advisors Lic. (9,199,014).

It is also interesting that Traherne Resource is being granted a seat on the Board of Directors along with their large ownership positition. I wonder if this will result in Clay Riddell becoming the new Chairman of Canadian Superior Energy? Something to think about as we await the announcemet of the new Chairman of Canadian Superior Energy.

Best Wishes; Scott