Canada Southern Doubles Reserve Value

Canada Southern Petroleum announces its 2005 year end reserves based on information from its independent engineering reserve report as of December 31, 2005.


- Total proved plus probable reserves increased 39% year-over-year from 1,642 Mboe to 2,275 Mboe

- The Company replaced production by 2.5 times through discoveries, extensions and revisions

- Present value of proved plus probable reserves (discounted at ten percent before tax) more than doubled from $23.5 million a year ago to $49.9 million

- Proved plus probable reserves are 95% natural gas

Reserve Additions

Reserves were added as a result of successful drilling during the year at Kotaneelee in the Yukon and Buick Creek and Mike/Hazel in northeast British Columbia. The related increase in value results from a combination of these reserve additions and increased commodity prices.


The Company's reserve estimates are independently evaluated by GLJ Petroleum Consultants (formerly Gilbert Laustsen Jung Associates Ltd.) and were prepared in accordance with Canadian National Instrument 51-101 ("NI 51-101").

Under NI 51-101, proved reserves are defined as having a 90% probability that the volumes recovered will actually be equal to or exceed the proved reserve estimates. Proved plus probable reserves are defined as having a 50% probability that they will exceed the reserves estimated.

Under NI 51-101, no proved or probable reserves or values can currently be assigned to our interests in the Arctic Islands until such time as the tie-in or transportation of the natural resource becomes economical.

Arctic Island Gas Resources

We believe that our Sverdrup Basin gas including our interests in the Hecla and Drake Point discoveries on the Sabine Peninsula of Melville Island is a long term resource which may ultimately represent a significant asset to Canada Southern. The Company expects that development and transportation of Arctic Island gas could follow development of the Mackenzie Delta resources in Northern Canada.

The summary of our Company interest reserves as shown below is estimated before royalty burdens and is based on forecast prices and costs.

                            Natural        Gas      Crude
                                Gas    Liquids        Oil      Total
                              (Mmcf)     (Mbbl)     (Mbbl)     (Mboe)

 Developed Producing          8,006         55          2      1,391
 Developed Non-Producing      1,530         28          1        284
 Undeveloped                     90          2          -         17
Total Proved                  9,626         85          3      1,692
 Probable                     3,355         23          1        583
Total Proved Plus Probable   12,981        108          4      2,275

                                        Net Present Values
                                         Before Income Tax
                                           Discounted at
                                  0%              5%              10%

 Developed Producing       $ 42,604        $ 37,785         $ 34,444
 Developed Non-Producing      6,930           6,104            5,452
 Undeveloped                    290             251              219
Total Proved                 49,824          44,140           40,115
 Probable                    15,527          11,939            9,851
Total Proved Plus
 Probable                  $ 65,351        $ 56,079         $ 49,966

The net present value before income tax above may be different from
the fair market value of our reserves. A barrel of oil equivalent
(boe), derived by converting gas to oil in the ratio of 6,000 cubic
feet to 1 boe, may be misleading, particularly if used in isolation.
A boe conversion is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

A detailed presentation of the results will be provided with the Annual Information Form which will be filed in the latter part of March.

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 common shares are traded on the NASDAQ Capital Market under the symbol "CSPLF," and on the Toronto Stock Exchange under the symbol "CSW".