USA Superior Announces $122 Million Net Present Value of Probable Reserves

USA Superior Energy Holdings, Inc. (OTCBB: USSUE), a Houston based energy company ("Company") focused on shallow well enhanced oil recovery (EOR) and drilling of existing proven fields that have been idle or marginally producing, announced the completion of its probable reserve studies for its Bateman and Benton Fields. Mr. Rowland Carey, Chairman and CEO, announced, "We have now completed our lengthy analysis of our probable recoverable reserves in the Bateman and Benton fields. Without additional acreage or any value assigned to the Company's Zavalla lease, the total net present value of our holdings when fully developed is approximately $122 million (standard industry discount rate of 10% with an $85 average price of oil)."

Mr. Rowland Carey stated, "I am pleased to announce the completion of our Probable Reserve forecasting and budget project. The net present value of the Probable Reserves (without our Zavalla field or any additional acreage) is $122 million. We have less than 60 million shares outstanding and certainly believe that the market has not had the necessary information to properly value the Company. We are excited to communicate to the market the results of these studies as the reason for our belief that the Company is dramatically undervalued."

Mr. Carey further stated, "Our management team is proud of where we have brought the Company to this point. Our growth will require us to add additional members to the management team with appropriate expertise and to expand our Board of Directors. Our probable reserve model assumes we gain the continued access to the capital that is necessary to grow, including the capital planned for this quarter of up to $2.0 million. This capital will enable us to maintain our business plan's operational pace and the 2008 production budget targets announced yesterday."

Mr. Jerry Witte, Vice President - Geology and Field Operations, stated: "With our current plan to execute these two fields, over the ten-year life, the company estimates it could accumulate as much as $170 million excess cash flow. Obviously, to the extent that oil is priced higher in the early years above the $85 it is currently, the present value calculations would increase. Of course, should oil prices fall below this average for the ten-year life, the net present value of our holdings could decline."

Bateman production will be accelerated during 2008 and Benton production is forecasted to come on line in 2009. The net production (after payment of royalties) during the ten-year life is approximately 1.5 million barrels of oil in the Bateman field and 1.1 million barrels in the Benton Field. This would total approximately $220 million of net revenue (after royalties) with approximately $95 million out of Benton and $125 million from Bateman. Of the $122 million net present value of Probable Reserves, approximately $74 million is from Bateman and $48 million from the Benton field.

Mr. Witte further stated, "Under our current field development projections, we intend to re-invest 75% of the cash flow for capital expenditures in field development. The resulting production from field development planned in the second half of 2008 permits our margins to increase rapidly in 2009. This has a substantial impact on our cash flow, with cash flow exceeding our total expenditures substantially during 2009 on our current budget pace. We anticipate utilizing this internal cash flow for other field or acreage acquisition and enhanced recovery opportunities as well as consider joint ventures and investments.

"I think now is an appropriate time to broaden the market's understanding of our holdings. In completing the analysis of the Bateman Field we have identified numerous proven and probable development opportunities. Thirty-six infill-drilling locations have been identified. We are currently in review with our third party reservoir engineer Cathedral Resources that does independent proven reserve study updates for SEC purposes, where we are categorizing each infill location."

Cathedral's end of year 2007 reserve report has identified proven reserves of 445,000 net BO with an undiscounted value of $18.9 million and a NPV10% of $3.8 million. A breakdown of the reserves shows PDP reserves of 194,300 net BO with a NPV10% of $1.9 million from existing wells, and twenty PUD locations with 250,650 net BO with a non-discounted NPV of $11 million and a discounted NPV10% of $1.93 million.

The Company believes that upon continuing execution of our plan of development (wellbore and reservoir enhancement), oil reserves that normally would have been produced far in the future will now be produced within the next 10 to 20 years. In our probable reserve model, we utilize the SEC required guidelines, historic production rates and existing production conditions to determine the NPV. The average PUD has a total operating expense of $311,000 per well over the 75-year expected well life. Reducing the production life of these wells from 75 years to 10 or 20 years will reduce total operating expenses from $311,000 per well to $61,000 per well over the wells' life. This reduction of expenses and accelerated oil production rate will significantly increase the NPV discount rate of 10% on the PUD identified.