Petro-Canada Won't Increase Canada Southern Bid

Petro-Canada, through its wholly owned subsidiary Nosara Holdings Ltd., said late Thursday that it has no intention to increase its bid for Canada Southern Petroleum Ltd. and will let its current bid expire on July 27, 2006.

"We had a range of values for these assets,” said Kathy Sendall, senior vice-president of Petro-Canada's North American Natural Gas business. “Going any further would exceed that threshold and not represent value to us. This was always just an option play for us. Our best offer is on the table. We will not increase this offer and we will let our existing bid expire on July 27, 2006. With the carried interest still in place, the value of this asset to us is significantly diminished so we will direct our resources to other long-life opportunities in our portfolio.”

Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally.