CANADA SOUTHERN PETROLEUM LTD
8-K, 1996-10-22
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) October 17, 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 October 17, 1996,  the Company  announced  that the trial of its lawsuit
against  Amoco Canada and the other  Kotaneelee  working  interest  partners was
adjourned  pending  resolution of a conflict of interest dispute involving Amoco
Canada's law firm.

     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 October 17, 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:  October 21, 1996            By /s/ Charles J. Horne
                                      --------------------
                                          Charles J. Horne
                                          President



<PAGE>





                                                         
                                  EXHIBIT INDEX




      Exhibit                     Description

       99(a)                      Press release of the registrant dated
                                  October 17, 1996




<PAGE>

 

                         CANADA SOUTHERN PETROLEUM LTD.



                                CANADA SOUTHERN'S
                               KOTANEELEE LAWSUIT
                              TEMPORARILY ADJOURNED


     CALGARY,  Alberta, Oct. 17, 1996 -- Canada Southern Petroleum Ltd. [NASDAQ:
CSPLF; Toronto,  Boston, and Pacific: CSW] said the trial of its lawsuit against
Amoco Canada and several other companies has been halted pending resolution of a
conflict-of-interest dispute involving Amoco Canada's law firm.

     Canada  Southern  said it insisted that the law firm  immediately  withdraw
from the case  because an  attorney  who had  joined  the firm as a partner  had
previously served as the company's principal counsel in Canada for many years.

     A  Canada  Southern   spokesman  said  trial  has  been  adjourned  pending
resolution  of the law firm's  application  to  continue  to serve as counsel to
Amoco  Canada.  That  application  will be the  subject  of a  separate  hearing
expected to be held at the end of this month, he said.

     Canada  Southern's  lawsuit  seeks  damages from Amoco Canada and the other
current working-interest partners in the Kotaneelee gas field.



                                      -RMB-


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