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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) September 22, 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) dentification 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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FORM 8-K
CANADA SOUTHERN PETROLEUM LTD.
Item 5. Other Events
The operator of the Kotaneelee gas field has reported to the Company that
development costs totaling approximately $8,873,000, of which the Company's
share is $2,662,000, remain to be recovered at May 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. Amoco claims that
the remaining costs to be recovered at February 28,1999 were $88,983,000.
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, since there are uncertainties as to production levels, gas
pricing, field operating expenses, additional capital expenditures 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. Item 7. Financial Statements, and Exhibits None
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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: September 22, 1999
