<PAGE>


REPORT OF INDEPENDENT CHARTERED ACCOUNTANTS


To the Shareholders of
Canadian Superior Energy Inc.


Under date of May 10, 2004, we reported on the consolidated balance sheet of
Canadian Superior Energy Inc. as at December 31, 2003 and the statements of
operations and retained earnings (deficit) and cash flows for the year then
ended included in the 2003 Annual Report. These consolidated financial
statements and our report thereon are included in the Form 40-F dated May 19,
2004. In connection with our audit of the aforementioned consolidated 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.







Chartered Accountants

Calgary, Canada
May 19, 2004


<PAGE>

CANADIAN SUPERIOR ENERGY INC.
Supplementary Information Note

Years ended December 31, 2003 and 2002
(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:
<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
                                                                                     2003                 2002
----------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                  <C>
Net loss in accordance with Canadian generally
accepted accounting principles, as reported                                 $        (312)       $     (28,173)

   Flow through shares (a)
     Income taxes                                                                  (3,757)              (9,669)

   Property acquisitions (b)
     Depletion, depreciation and amortization expense                                 525                  330
     Income taxes                                                                    (189)                (140)

   Ceiling test (c)
     Write down of oil and gas assets                                             (34,100)               6,000
     Income taxes                                                                  12,089               (2,550)
     Depletion, depreciation and amortization expense                                (770)                  --
     Income Taxes                                                                     277                   --

   Asset retirement obligations (d)
     Depletion, depreciation and amortization expense                              (1,027)                  --
     Future site restoration expense                                                1,223                   --
   Income taxes                                                                       (65)                  --

----------------------------------------------------------------------------------------------------------------------

Net loss before cumulative effect of change
   in accounting policy (d)                                                 $     (26,106)       $     (34,202)

Cumulative effect of change in accounting policy, net of tax                          147                   --
----------------------------------------------------------------------------------------------------------------------

Net loss in accordance with United States
   generally accepted accounting principles                                       (25,959)            (34,202)
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------

Net loss per share in accordance with United States
   generally accepted accounting principles

Basic                                                                       $       (0.31)       $       (0.62)
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------

Diluted                                                                     $       (0.31)       $       (0.62)
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
</TABLE>


<PAGE>


CANADIAN SUPERIOR ENERGY INC.
Supplementary Information Note, page 3

Years ended December 31, 2003 and 2002
(Tabular amounts in thousands of Canadian dollars except per share amount)
--------------------------------------------------------------------------------


The application of U.S. GAAP results in the following differences to the
following balance sheet items:
<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
                                                  2003                                      2002
                                     -----------------------------              ------------------------------
--------------------------------------------------------------------------------------------------------------------
                                       Canadian      United States               Canadian        United States
--------------------------------------------------------------------------------------------------------------------
<S>                              <C>                 <C>                    <C>                  <C>
Oil and gas assets               $      102,677      $      75,038          $      31,946        $      33,855
Future income tax liability               9,046                  0                  5,213                8,170
Asset retirement obligation               1,634              5,979                    411                  411
Share capital (e)                       102,404            143,476                 49,927               70,185
Deficit                                    (312)           (64,322)               (17,057)             (38,363)
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
</TABLE>


(a)  Flow Through Shares

     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, share
     capital for flow through shares is 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)  Ceiling Test

     At December 31, 2003, the Corporation applied a ceiling test to its oil and
     gas assets. Under Canadian GAAP the application of this test required no
     adjustment to the carrying value of the Corporation's oil and gas assets.

     For U.S. GAAP purposes, the ceiling test used December 31, 2003 prices of:
<TABLE>

                <S>                                             <C>
                Gas (per thousand cubic feet)                   $      6.10 CDN
                Oil and natural gas liquids (per barrel)        $     34.92 CDN
</TABLE>

     The application of the test resulted in a $34.1 million pre-tax reduction
     ($22.0 million after tax) in the carrying value of the Corporation's oil
     and gas assets under U.S. GAAP.


<PAGE>

CANADIAN SUPERIOR ENERGY INC.
Supplementary Information Note, page 4

Years ended December 31, 2003 and 2002
(Tabular amounts in thousands of Canadian dollars except per share amount)
--------------------------------------------------------------------------------

     At December 31, 2002, the Corporation applied a ceiling test to its oil and
gas assets using December 31, 2002 prices of:
<TABLE>

                <S>                                             <C>
                Gas (per thousand cubic feet)                   $      6.00 CDN
                Oil and natural gas liquids (per barrel)        $     42.35 CDN
</TABLE>

     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 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.

     The resulting differences in the recorded carrying amounts of the
     properties results in differences in depletion, depreciation and
     amortization expense in subsequent years.

(d)  Asset Retirement Obligations

     Under U.S. GAAP, the Corporation adopted with retroactive application a new
     accounting policy for asset retirement obligations as of January 1, 2003.
     All previously existing reclamation and abandonment liabilities were
     reversed and an asset retirement obligation was measured and recorded at
     fair value with a corresponding increase in oil and gas assets. The change
     to the January 1, 2003 reported values were to increase: oil and gas assets
     by $888,000, asset retirement obligation by $632,000, future income tax
     liability by $109,000 and a deficit reduction of $147,000. The capitalized
     cost will be amortized to depletion expense over the useful life of the
     asset. The liability will be adjusted over time with a corresponding
     accretion expense until the obligations are settled. This application did
     not have a significant impact on the Corporation's earnings and did not
     impact the Corporation's net loss per share. This policy will be adopted
     under Canadian GAAP effective January 1, 2004.

(e)  Stated Capital Reduction

     On June 27, 2003, at the Corporation's Annual Meeting of Shareholders, a
     special resolution was approved authorizing a reduction in the stated
     capital account for the common shares of the Corporation of $17,057,000,
     being the Corporation's deficit as at December 31, 2002. This reduction is
     not allowed under U.S. GAAP.

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.


<PAGE>


CANADIAN SUPERIOR ENERGY INC.
Supplementary Information Note, page 5

Years ended December 31, 2003 and 2002
(Tabular amounts in thousands of Canadian dollars except per share amount)
--------------------------------------------------------------------------------

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, 2003 and 2002 the Corporation did not have any derivative
financial instruments that were not designated as fair value hedges.

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 net earnings for
the year ended December 31, 2003 would have decreased by $771,000. The weighted
average fair market value of options granted in 2003 was $1.07 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 4.0%, volatility of 65% and expected life of five
years.

FIN 46 - Accounting for Variable Interest Entities

In January 2003, the FASB issued Financial Interpretation 46 "Accounting for
Variable Interest Entities" ("FIN 46") that requires the consolidation of
Variable Interest Entities ("VIEs"). VIEs are entities that have insufficient
equity or their equity investors lack one or more of the specified elements that
a controlling entity would have. The VIEs are controlled through financial
interests that indicate control (referred to as "variable interests"). Variable
interests are the rights or obligations that expose the holder of the variable
interest to expected losses or expected residual gains of the entity. The holder
of the majority of an entity's variable interests is considered the primary
beneficiary of the VIE and is required to consolidate the VIE. In December 2003
the FASB issued FIN 46R which superceded FIN 46 and restricts the scope of the
definition of entities that would be considered VIEs that require consolidation.
The Company does not believe FIN 46R results in the consolidation of any
additional entities that existed at December 31, 2003.