duncanmcl;

I agree with you that Canadian Superior has time. That is the purpose of having a receiver ......to give BG time and control to complete the flow testing on the Endeavour well and release the rig and rig tender the moment that the flow testing is completed. The receiver gives Canadian Superior time to pay back BG all of the money that BG is spending to complete the 3 well program agreed to in the Production Sharing Contract (PSC) with the Trinidad & Tobago government. Once that is completed then Canadian Superior gets title for 25 years to 70% of Block 5(C) and BG gets its 30% title to the Block.

Without BG stepping in and antiing up the money to complete SNG and BG's obiligations under the PSC contract with the Trinidad Government, BG would end up with nothing. BG is therefore advancing the money to complete the flow testing out of its own self interest as; SNG and BG must complete their obligations under the PSC as far as the Trinidad & Tobago government is concerned or the contract with SNG, BG and the Trinidad & Tobago government is void. By being proactive and asking SNG to pay the money it owed and when it said it couldn't BG got the Receiver to give SNG time; as the flow test continues, SNG pays the Canadian Western Bank, SNG puts itself up for sale and tries to get either the cash it is owed from Challenger (from sale of Challenger in the meantime) or the equivalent owed in Challenger shares. The big question is how much time does Canadian Superior have with Palo Alto and the other funds breathing down it's neck and the Canadian Western Bank and British Gas......

How much time does SNG have? I guess we play this one day at a time for now. SNG has an extension until February 27 to work something out with the Canadian Western Bank, the Receiver may be able to work out a repayment schedule with the bank. Scotia/Waterous may be able to front SNG the money to settle up with BG in terms of the cash it is owed for completing the PSC and Scotia/Waterous would then be reimbursed once SNG 45% of Block 5(C) is sold. Waterous is an arm of Scotiabank and thus has access to a large amount of capital which normally a company could not get access to during this economic time unless you were in the process of being sold by Scotia/Waterous. The only thing that irks me is BG can match the highest offer made to buy out SNG. BG is partnered with Chevron on the 5 (a) Block Dolphin Deep wells and BG is partners with Repsol, Chevron, Suez LNG, BP Trinidad, Amoco Trinidad, Atlantic LNG, NGC LNG. on the four LNG trains in Trinidad. Any of these partners of BG could put in low bids for BG to better in the final bidding. In terms of trying to be positive as shareholders of SNG, we can only hope that one of the following happens:

1) a court takeover of SNG by BG is avoided at all costs,

2) BG puts in a fair bid for SNG's 45% of Block 5(C) and it is a win win for SNG & BG, or;

3) A dark ship sails in from far away and puts in a fantastic bid: China, South Korea, Abu Dhabi , Japan, REPSOL, TOTAL, maybe even BG's biggest rival in Trinidad BP.

Cheers; Scott