UPDATE 1-Canadian Superior extension keeps creditors at bay

* Protection from creditors extended until May 4

* Still looking to sell stake in Trinidad asset

TORONTO, March 26 (Reuters) - Canadian Superior Energy Inc (SNG.TO) said on Thursday that a Canadian court had extended its creditor protection to May 4.

The oil and gas producer said the extension under the Companies' Creditors Arrangement Act by a Calgary, Alberta, court meant it can continue its restructuring while keeping its creditors at bay.

Canadian Superior originally won protection from the court on March 6.

The junior oil producer said that while the order is in effect, it would work with a court-appointed monitor as it goes forward with its plan of arrangement for its creditors.

The company said it still planned to find a buyer for its stake in a promising gas discovery near Trinidad.

Canadian Superior said it had retained Scotia Waterous as its advisor for the sale. "The marketing process is well underway," it added.

A successful sale of the Trinidad asset and/or a possible recapitalization of the company should allow it to restructure in an organized manner and emerge from CCAA protection in due course, Canadian Superior said.

Canadian Superior shares the Trinidad asset with BG Group Plc (BG.L) and another small Canadian company. In February, BG sought to have a a receiver appointed for Canadian Superior's interest in the Intrepid Block offshore Trinidad. ($1=$1.23 Canadian) (Reporting by John McCrank; Editing by Lisa Von Ahn)