Exhibit
3  REPORT OF INDEPENDENT CHARTERED ACCOUNTANTS  To the Shareholders of Canadian Superior Energy Inc.  Under date of April 30, 2003, we reported on the balance sheets of
Canadian Superior Energy Inc. as at December 31, 2002 and 2001 and the statements
of earnings and retained earnings (deficit) 
and cash flows for the years then ended included in the 2002 Annual
Report.  These financial statements and
our report thereon are included in the Form 40-F dated May 20, 2003  In connection with our audits of the
aforementioned financial statements, we also have audited the related
supplementary information note entitled Reconciliation with United States
Generally Accepted Accounting Principles included in the Form 40-F.  This supplementary note is the responsibility
of the companys management.  Our
responsibility is to express an opinion on the supplementary note based on our
audit.  In our opinion, such supplementary note, when considered in relation to
the basic financial statements taken as a whole, presents fairly, in all
material respects, the information set forth therein.  Brown
Smith Owen LLP  Chartered Accountants  Calgary, Canada May 20, 2003   
   CANADIAN
SUPERIOR ENERGY INC. Supplementary Information Note  Years ended December 31, 2002 and 2001 (Tabular amounts are in thousands of Canadian dollars except per share
amounts)  The following supplemental information is provided in accordance with
the Securities Exchange Act of 1934 as required for companies reporting on Form
40-F under the Multi-Jurisdictional Disclosure System.  Reconciliation with United States
Generally Accepted Accounting Principles  The Company follows Canadian generally accepted accounting principles
(Canadian GAAP) which differs in some respects with accounting principles in the
United States (U.S. GAAP).  Significant
differences in accounting principles that impact the Companys financial
statements are described below:  2002
  
  2001Net earnings
  (loss) in accordance with Canadian generally accepted accounting principles,
  as reported
  
  $
  (28,173
  )
  $
  8,109Flow through
  shares (a)Income taxes
  
  (9,669
  )
  (4,167
  )Property
  acquisitions (b)Depletion,
  depreciation and amortization expense
  
  330
  
  127Income taxes
  
  (140
  )
  (54
  )Stock options
  (c)General and
  administrative expense
  
  
  
  (172
  )Ceiling test (d)Write down of
  oil and gas assets
  
  6,000
  
  Income taxes
  
  (2,550
  )
  Net earnings
  (loss) in accordance with United States generally accepted accounting
  principles
  
  $
  (34,202
  )
  $
  3,843Net earnings
  (loss) per share in accordance with United States generally accepted
  accounting principlesBasic
  
  $
  (0.62
  )
  $
  0.09Diluted
  
  $
  (0.62
  )
  $
  0.09   
   The application of U.S. GAAP results in the following differences to
the following balance sheet items:  2002
  
  2001Canadian
  
  United
  States
  
  Canadian
  
  United
  StatesOil and gas
  assets
  
  $
  31,946
  
  $
  33,855
  
  $
  35,519
  
  $
  31,098Future income
  tax liability
  
  5,213
  
  8,170
  
  14,824
  
  15,091Share capital
  
  49,927
  
  70,185
  
  31,781
  
  42,370Retained
  earnings (deficit)
  
  (17,057
  )
  (38,363
  )
  11,116
  
  (4,161
  )  
 (a)The
Company finances a portion of its activities with flow through share issues
whereby the tax deductions are renounced to the share subscribers.  The tax cost of the deductions renounced to
shareholders is reflected as an increase in the future income tax liability and
a reduction from the stated value of the shares.  For flow through shares issued after 1998, the SEC prescribed
practice requires that share capital for flow through shares be stated at the
quoted value of the shares at the date of issuance; the tax cost resulting from
deduction renouncements, less any proceeds received in excess of the quoted
value of the shares, must be included in the determination of the tax expense.  (b)Property
Acquisitions  In prior years, the Company recorded property
acquisitions from related parties in exchange for common shares at the exchange
amount. Under US GAAP, these related party acquisitions are recorded at the
sellers carrying amount. The resulting differences in the recorded carrying
amounts of the properties results in differences in depletion, depreciation and
amortization expense in subsequent years.  (c)Stock
Options  Certain recipients of
options granted under the stock option plan were not employees or directors of
the Company. Prior to 2002, the Companyspolicy did not require that a cost be recorded
when these grants were awarded. Under US GAAP, a fair value of grants awarded
to consultants is recorded as a cost over the vesting period. A fair value of
the grants awarded to consultants not directly related to acquisitions,
exploration and development activities is recorded as a charge to
administrative expenses and a credit to equity.  (d)Ceiling
Test  At December 31, 2002, the
Corporation applied a ceiling test to its oil and gas assets using December 31,
2002 prices of:  Gas (per
  thousand cubic feet)
  
  $
  6.00 CDNOil and natural
  gas liquids (per barrel)
  
  $
  43.25 CDN
  The application of the test
resulted in a $43.0 million pre-tax reduction ($24.7 million after tax) in the
carrying value of the Corporations oil and gas assets under Canadian GAAP.  For U.S. GAAP   2 
   purposes, the test resulted
in a $37.0 million pre-tax reduction ($21.3 million after tax) in the carrying
value of the Corporations oil and gas assets.  (e)Effective
January 1, 2000 the Company adopted the liability method of accounting for
income taxes for Canadian GAAP purposes. 
The new standard was adopted retroactively without restating prior
years.  This standard is substantially
similar to the accounting standard for income taxes under U.S. GAAP; therefore,
there is no material GAAP difference since the date of adoption.   3 
   Additional U.S. GAAP Disclosures  FAS 133  At times the Company will use derivative financial instruments to
manage commodity price and interest rate exposures.  Effective January 1, 2001 the Company adopted the provisions of
FAS 133 which requires that all derivatives be recognized as assets and
liabilities on the balance sheet and measured at fair value.  Gains or losses on derivatives that have not
been designated as hedges, or were not effective as hedges, are included in
income as they arise.  For derivatives designated as fair value hedges, changes in the fair
value are recognized in income together with changes in the fair value of the
hedged item.  For derivatives designated
as cash flow hedges, changes in the fair value of the derivatives are
recognized in other comprehensive income until the hedged items are recognized
in income.  Any change in the fair value
of the derivatives that are not effective in hedging the changes in future cash
flows are included in income as they arise.  At December 31, 2002 and 2001 the Company did not have any derivative
financial instruments.  FAS 123  FAS 123 establishes financial accounting and reporting standards for
stock-based employee compensation plans as well as transactions in which an
entity issues its equity instruments to acquire goods or services from
non-employees.  As permitted by FAS 123,
the Company elected to follow the intrinsic value method of accounting for
stock-based compensation arrangements, as provided for in Accounting Principles
Board Opinion 25.  Since all options
were granted with exercise prices equal to the market price when the options
were granted, no compensation expense has been charged to income at the time of
the option grants.  Had compensation costs for the stock options been determined based on
the fair market value at the grant dates of the awards and amortized on a
straight line basis, consistent with methodology prescribed by FAS 123,
the loss for the year ended December 31, 2002 would have increased by
$365,000.  The weighted average fair
market value of options granted in 2002 was $0.88 per option.  The fair value of each option granted was
estimated on the date of grant using the Modified Black-Scholes option-pricing
model with the following assumptions: 
risk-free interest rate of 3.7%, volatility of 49% and expected life of
ten years.   4 
   Business Combinations and Goodwill  In 2001, the Financial Accounting Standards Board issued SFAS 141 and
SFAS 142.  Under the new standards,
all business combinations initiated after June 30, 2001 must be accounted for
by the purchase method, which may result in the recognition of goodwill.  Goodwill and other intangible assets with
indefinite lives will no longer be amortized but will be subject to periodic
impairment tests.  Adoption of these new
standards was prospective and had no impact on the Companys financial
statements as at December 31, 2002 or December 31, 2001.  Accounting for Asset Retirement Obligations  In 2001, FASB issued SFAS 143. 
SFAS 143 requires recognition of the fair value of the retirement
obligation for long-lived tangible assets as a liability.  Retirement cost equal to the retirement
liability is to be capitalized as part of the cost of the related capital asset
and amortized to expense over the life of the asset.  This new standard is effective for fiscal years beginning on or
after June 25, 2002.  Adoption of this
standard may result in an increase in property, plant and equipment and future
site restoration on the balance sheet but is not expected to have a material
impact on income.  Accounting for the Impairment or Disposal of Long-Lived Assets  In 2001, FASB issued SFAS 144. 
This standard supercedes SFAS 121 Accounting for the Impairment of
Long-Lived Assets to be Disposed of and Accounting Principles Board Opinion 30
Reporting Results of Operations  Reporting the Effects of Disposal of a
Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions.  The standard
requires that an impairment be recognized on long-lived assets when the
expected undiscounted cash flows are less than the carrying amount.  The standard also addresses long-lived
assets to be disposed of and discontinued operations.  Adoption of this standard is not expected to have a material
impact on the Companys financial statements.   5