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) June 29, 1999
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.)
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2
FORM 8-K
CANADA SOUTHERN PETROLEUM LTD.
Item 5. Other Events
On June 25, 1999, the Kotaneelee trial was adjourned until September,
when the Court of Queens Bench will reconvene after its summer recess.
The operator of the Kotaneelee gas field has reported to the
Company that development costs totaling approximately $12,400,000, of which the
Company's share is $3,719,000, remain to be recovered at March 31, 1999. The
amount of remaining recoverable costs is one of the issues being contested in
the Kotaneelee litigation. The Company claims, and the defendants deny, that the
defendants have made improper charges to the carried interest account and one
defendant (Amoco Canada Oil and Gas) maintains that the carried interest account
should be charged additional amounts for gas processing fees.
Projections by the operator indicate that the carried interest account
may reach payout status prior to the end of 1999. However, there can be no
assurances when payout may occur, in as much as there are uncertainties as to
production levels, gas pricing, field operating expenses and the impact of the
Kotaneelee litigation.
The Company's Annual Report on Form 10-K for the year ended December
31, 1998 should be read for a detailed discussion of the
Kotaneelee litigation.
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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)
By /s/ M. A. Ashton
M. A. Ashton
President
Date: June 29, 1999
