Interms of if there is any question that SNG has wi rights on 5c....The original JOA as you know gave SNG working interest rights in 5(c) , however BGI submitted to the court that SNG defaulted under the JOA when they couldn;t pay their share of the costs when Endeavour was drilled and tested. SNG countered by stating that BGI triggered the default mechanism itself in the JOA when they jumped the gun and had the court appoint the Receiver instead of giving SNG a reasonable time period to come up with the money that it owed. The JOA provides a mechanism for arbitration which is currently being pursued. So both are in the arbitration process to determine who was in default and who has the rights. An easy way out is to blame it all on Challenger Energy and deny Challenger any working interest rights....ie.. if Challenger had paid the bridge loan and the money that it owed to Canadian Superior then Canadian Superior could have payed the costs on the Endeavour well which would have prevented BGI from going to court for a Receivership order.

Greg Noval side deals keep popping up all over the place. He is the lead in Global which together with SNG who are the 50/50 partners who constitute Excaliber which is behind the Liberty LNG project in New Jersey. Notice that SNG was to pay the first US$10 million of predevelpment costs (US$9.6 million has been already paid) = SNG's money is used first.

Greg Noval also owns Hughes Aviation which charters planes to fly SNG staff to Trinidad & Tobago etc. SNG has been paying Hughes Aviation staff salaries over the years and then SNG bills Hughes Aviation for these costs. The Receiver just put an end to this practice.

The SNG Board of Directors also said that it needs time to look at Palo Alto's financial proposal.....to cover their asses with the court that they are seriously looking at the proposal.

The 2nd Monitor's Report asked for an extension of CCAA protection to April 24, 2009 which I fully expect will be granted to facilitate Canadian Superior Energy's reorganization.

Best Wishes; Scott