CANADA SOUTHERN PETROLEUM LTD
8-K, 1996-12-23
CRUDE PETROLEUM & NATURAL GAS
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                                  United States
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported) December 20, 1996


                         Canada Southern Petroleum Ltd.
             (Exact Name of registrant as specified in its charter)


    Nova Scotia, Canada              1-3793                   98-0085412
(State or other jurisdiction      (Commission               (IRS Employer
       of incorporation)          File Number)            Identification No.)


            Suite 1410, One Palliser Square, 125 Ninth Avenue, S.E.,
                        Calgary, Alberta, Canada T2P 1G2
                    (Address of principal executive offices)


        Registrant's telephone number, including area code (403) 269-7741


                                 Not Applicable
         (Former name or former address, if changed since last report.)
                                                               



<PAGE>



Item 5.  Other Events


     On  December  20,  1996,  the Company  announced  that the Court of Queen's
Bench, in Calgary ruled in favor of allowing Amoco Canada's law firm to continue
to represent Amoco in the Kotaneelee lawsuit. The Company expects it will appeal
this decision.

         A press release relating to these  developments is filed herewith as an
exhibit and incorporated herein by reference.

Item 7.  Financial Statements and Exhibits

         (c)      Exhibits

                  (99)     Additional Exhibits.

                  (a)      Press release dated December 20, 1996.




<PAGE>

                                   SIGNATURES





         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.





                                      CANADA SOUTHERN PETROLEUM LTD.
                                                (Registrant)




Date:  December 23, 1996              By /s/ Charles J. Horne
                                         --------------------
                                         Charles J. Horne
                                         President





<PAGE>





                                                      
                                  EXHIBIT INDEX




           Exhibit                Description

            99(a)        Press release of the registrant dated
                         December 20, 1996




<PAGE>

 
  



                         CANADA SOUTHERN PETROLEUM LTD.



                          CANADA SOUTHERN'S CONFLICT -
                           OF-INTEREST CLAIM IS DENIED



     CALGARY,  Alberta, Dec. 20, 1996 -- Canada Southern Petroleum Ltd. [NASDAQ:
CSPLF;  Toronto/Boston/Pacific:  CSW] said its conflict-of-interest dispute with
Amoco Canada's law firm,  Bennett Jones Verchere,  has been resolved in favor of
the law firm in a decision  by the Chief  Justice of the Court of Queen's  Bench
here.

     The Company said it  petitioned  the Court two months ago for  dismissal of
Bennett Jones because one of its  attorneys,  who was brought into the firm as a
partner,  had previously served as principal Canadian counsel to Canada Southern
for many years.

     A Canada  Southern  spokesman  said the Court has issued a 39-page  opinion
that allows  Bennett Jones to continue to represent  Amoco  Canada,  adding that
Canada Southern will consult with counsel concerning an appeal of that ruling.

     Canada  Southern is seeking damages from Amoco Canada and the other current
working-interest  partners in the Kotaneelee gas field,  in which it holds a 30%
carried interest.

                                      -RMB-


                   Contact: James R. Joyce, at (203) 245-7664



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