Yukon

April 15, 2003
Canada Southern Petroleum Ltd., Calgary, said all parties in litigation involving Kotaneelee gas field have engaged in serious discussions for several months in an effort to reach a settlement.

By OGJ editors

HOUSTON, Apr. 15 -- Canada Southern Petroleum Ltd., Calgary, said all parties in litigation involving Kotaneelee gas field have engaged in serious discussions for several months in an effort to reach a settlement.

The talks focused on ways to "resolve all of the issues raised by the litigation and to establish a constructive working relationship with regard to future operations at the Kotaneelee gas field," the company said.

Defendants in the litigation are BP Canada Energy Inc., Imperial Oil Resources Ltd., Exxon Mobil Canada Properties, and Devon Canada Corp. The trial court in the litigation rendered its decision in September 2001, and oral arguments before the court of appeals are scheduled for December 2003.

Timing and outcome of the talks are uncertain because many complex issues have been contested for years and may not be easily resolved to the satisfaction of all parties, Canada Southern said.

The company said gas prices and field production fell in the year ended Dec. 31, 2002 (OGJ, Jan. 22, 2001, p. 64).