Petro-Canada Extends Canada Southern Offer

Petro-Canada extended the offer by its wholly-owned subsidiary Nosara Holdings Ltd. to acquire all of the common shares of Canada Southern Petroleum Ltd. The offer, as extended, is now open for acceptance until 7 p.m. (Mountain Daylight Time) on July 5 unless further extended or withdrawn

The offer price for each common share of Canada Southern remains unchanged at US$7.50 per share. Petro-Canada expects to mail a Notice of Extension today in respect of the extension of the offer to Canada Southern shareholders. The company has been advised by the depository for the offer that a total of 61,601 common shares had been deposited to the offer as of June 20.

On May 15, Petro-Canada, through Nosara Holdings, commenced a cash offer for all outstanding shares of Canada Southern Petroleum. The offer is for a cash price of US$7.50 per share, or approximately US$113 million in total on a fully diluted basis. The offer represents a premium of 58% over the closing price of Canada Southern's shares on NASDAQ on the day before the offer was announced.