The following information is contained in the affadavit of Richard M. Watkins dated April 24th 2009 which was filed with the Court Of Queens Bench Of Alberta Judicial District Of Calgary http://relieffromdebt.ca/documents/c...

Item 11:

"As has previously been disclosed to the Court and to the interested parties, the Corporation had received an unsolicited proposal, subject to certain conditions including Board approval, from a party interested in purchasing its Western Canadian assets. Without any preconception as to whether such a sale would be in the best interests of the stakeholders, the Independent Committee directed Jennings Capital Inc., on April 6, 2009 to conduct a limited auction to collect bids for the Corporation's Western Canadian assets. By that means, the possible sale of the Western Canadian assets, or some of them, could reasonably be considered as part of a proposal in the CCAA proceedings if the Independent Committee deemed that to be appropriate. That step was taken to insure that the Independent Committee had investigated all possible alternatives for the resolution of the CCAA proceedings. It was also deemed to be an appropriate step in face of expressions of concern from some shareholders of the Corporation that they would prefer not to see a sale of the Block 5(c) assets in its entirety."

Item 12:

" The limited auction with respect to the Western Canadian assets is proceeding apace with preliminary expressions of interest expected by April 28, 2009. The Independent Committee was informed from the outset of that process that the previous unsolicited bidder did intend to participate in the limited bid auction process."

Item 13:

"As part of its work in investigating all strategic alternatives, the Independent Committee has, through its financial advisors, been investigating the possibility or recapitalization of the Corporation, in whole or in part, as one possible element for a restructuring of the corporation."

Third Report Of The Monitor Hardie & Kellie Inc. April 28, 3009.

http://relieffromdebt.ca/documents/c...

states the following:

Item 15:

"Despite the involvement of Jennings Capital, CSEI and the Independent Committee have instructed Scotia Waterous to continue with its sales process. Although Jennings has established a virtual data room in Respect of Block 5(c), they have advised the Monitor that it exists only to provide information to parties that may express an interest in recapitalizing CSEI."

Best Wishes; Scott