Canada Southern Petroleum Ltd. Announces Decision to Participate in the Proposed Drilling of a Development Well at Kotaneelee
27 Maggio 2004 - 12:44AM
PR Newswire (US)
Canada Southern Petroleum Ltd. Announces Decision to Participate in
the Proposed Drilling of a Development Well at Kotaneelee CALGARY,
Alberta, May 26 /PRNewswire-FirstCall/ -- Canada Southern Petroleum
Ltd. (NASDAQ and Pacific: CSPLF; Toronto and Boston: CSW) today
announced an important development respecting the Company's
interests in the Kotaneelee producing gas field and undeveloped
acreage at Kotaneelee in the Yukon Territory. The Company announced
that it has determined to participate in the proposed drilling of a
development well in the Kotaneelee field to the extent of its
30.67% working interest. The operator of the field has proposed to
drill a development well in the third quarter of this year and has
estimated that the gross costs to drill, complete and equip the
proposed well will be approximately $20 million (Cdn.) and that the
well's drilling and completion will take approximately 6 months.
Canada Southern has been advised that if the proposed well is
successful, production would not likely start until the end of the
first quarter of next year. No assurances can be given that the
operator of the field will proceed with the proposed development
well as originally proposed. Investors are also cautioned that
there can be no assurances that the development well will, if and
when drilled, access additional reserves of gas in commercially
recoverable quantities. For a discussion of the various risk
factors related to future development of the Kotaneelee field,
please see the disclosures under the heading "Future Development of
Kotaneelee" in Item 1 of the Company's Form 10-K for the fiscal
year ended December 31, 2003. Canada Southern Petroleum Ltd. is an
independent energy company based in Calgary, Alberta, Canada. The
Company is engaged in oil and gas exploration and development, with
its primary interests in producing properties in the Yukon
Territory and British Columbia, Canada. The Company's limited
voting shares are traded on the Nasdaq SmallCap Market and the
Pacific Exchange, Inc. under the symbol "CSPLF," and on the Boston
Stock Exchange and the Toronto Stock Exchange under the symbol
"CSW." 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
risks and uncertainties are uncertainties as to the costs, pricing
and production levels from the properties in which the Company has
interests, the extent of the recoverable reserves at those
properties, the risks and uncertainties associated with the planned
Kotaneelee field development well and the significant costs
associated with the exploration and development of the properties
in which the Company has interests, particularly the Kotaneelee
field. The Company undertakes no obligation to update or revise
forward-looking statements, whether as a result of new information,
future events, or otherwise. The Company does caution, however,
that results in 2004 will be significantly lower than in 2003 was a
result of the one-time favorable effect in 2003 of the Kotaneelee
settlement. DATASOURCE: Canada Southern Petroleum Ltd. CONTACT:
Randy Denecky, Chief Financial Officer, Canada Southern Petroleum
Ltd., +1-403-269-7741
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