Transaction Type
Announce Date
Post Date
Estimated Price

To exercise right of first refusal to block the sale of 45% interest in Block 5(c) off southeastern coast of Trinidad and Tobago.

BG Group Plc, Reading, U.K. (London: BG) subsidiary BG International Ltd. has informed Canadian Superior Energy Inc., Calgary, (Amex, TSX: SNG) that it plans to exercise its right of first refusal to block the sale of Canadian Superior's interest in Block 5(c) off the southeastern coast of Trinidad and Tobago. Canadian Superior announced on June 1 that it would sell its 45% interest in the property to Centrica Resources Ltd., London, (London: CNA) for US$142.5 million in cash in what its board called a critical component of the company's restructuring after filing for bankruptcy protection under Canadian law in March. Canadian Superior's executive chairman and its president and CEO both resigned in August after minority shareholder Palo Alto Investors criticized the sale to Centrica. Under a joint-operating agreement, BGI and Canadian Superior discovered the natural gas site in January 2008 along with Challenger Energy, which is also under bankruptcy protection in Canada and was recently acquired by Canadian Superior in an all-stock deal worth approximately C$78 million. Block 5(c) currently has three producing wells. The most recent completion, Endeavour, had a flow rate of 56.4 million cubic feet of gas per day on March 1. BGI owns a 30% stake in the block, while Challenger has a 25% interest in the property. Canadian Superior has operations offshore Trinidad and Tobago; offshore Nova Scotia, Canada; in Western Canada; in the United States; and in North Africa.