Canada Southern Rests Its Case in Kotaneelee Lawsuit; Will Appeal Rulings
CALGARY, Alberta, April 26 /CNW/ -- Canada Southern Petroleum Ltd.
(Nasdaq: CSPLF; Toronto/Boston/Pacific: CSW) said it completed the
presentation of rebuttal evidence and rested its case in its lawsuit against
Amoco Canada and others yesterday.
The lawsuit, filed 11 years ago, seeks damages and/or other relief for the
defendants' breach of fiduciary duty in failing to market gas from the
Kotaneelee field, in which Canada Southern has a 30% carried interest.
The company said it intends to appeal the Court's April 10 dismissal of
its motion to direct the operator of the Kotaneelee field to make timely
payments of all current and future amounts due Canada Southern from its share
of the field's revenues.
The company also said that, in view of the Court's decision to dismiss its
motion, it does not intend to accrue any revenues from the Kotaneelee field
until collection of the amounts due can reasonably be assured. Based on the
operator's last report the company believes it was due approximately $900,000
as of Jan. 31, 2000.
A Canada Southern spokesman said the company also will appeal some recent
court rulings that prevented the company from presenting certain evidence in
rebuttal.
The spokesman further noted that the company is scheduled to present its
closing written arguments to the Court by June 24, with defendants scheduled
to present theirs by Aug. 23. Closing oral arguments are expected to be heard
late this year.
Any statements in this release that are not historical in nature are
intended to be -- and are hereby identified as -- "forward-looking statements"
for purposes of the "Safe Harbor Statement" under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statements. Among these
are (a) uncertainties as to the costs, length, and outcome of the Kotaneelee
litigation; and (b) the uncertainty as to when, or if, the company will
receive any revenue from the field.
-30-
For further information: Ben A. Anderson of Canada Southern Petroleum,
403-269-7741
PHIL |
