Canada Southern Announces Kotaneelee L-38 Development Well Has Commenced Drilling
August 23 2004 - 7:15PM
PR Newswire (US)
Canada Southern Announces Kotaneelee L-38 Development Well Has
Commenced Drilling CALGARY, Alberta, Aug. 23 /PRNewswire-FirstCall/
-- Canada Southern Petroleum Ltd. (Nasdaq/Pacific: CSPLF;
Toronto/Boston: CSW) today reported that the Kotaneelee L-38
development well was spud on August 22, 2004. This well is targeted
to enter the Nahanni formation horizontally and achieve a total
well depth of 4,882 metres (16,017 feet). As previously disclosed,
effective May 1, 2004, Canada Southern converted from a 30.67%
carried interest in the Kotaneelee natural gas field to a 30.67%
working interest. On May 3, 2004, the Company was served by the
field operator with a notice to drill a new development well at
Kotaneelee. Canada Southern elected to participate to its full
30.67% working interest. The operator estimates that the gross cost
to drill and case the well is $16,738,000, of which Canada
Southern's share is approximately $5,133,000. If the drilling of
the well is successful, it is estimated that a further $5,200,000
(gross) will be incurred to complete and tie-in the well. The
operator estimates it will take approximately 150 days to drill the
well. 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." The Company has
14,417,770 shares outstanding. 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, 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. DATASOURCE: Canada Southern Petroleum
Ltd. CONTACT: Randy Denecky, Chief Financial Officer of Canada
Southern Petroleum Ltd., +1-403-269-7741
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