For many months stockholders on various bulletin boards have been questioning and challenging the bridge loan that Canadian Superior made to Challenger Energy on September 28, 2008 which is still owed to Canadian Superior Energy by Challenger. Many have questioned Mike Coolen's extending this bridge loan to Challenger energy and view this loan as somehow shady or corrupt as it isn't a practice that one oil company will loan money to a business partner that requires money.

Yesterday Sterling Energy in its Q-1 Report stated the following:

"During the quarter Sterling was pleased to announce the execution of an agreement with Melrose Resources PLC (Melrose) to farm-out half of Sterling's 65% of the Midia and Pelican blocks offshore Romania in the Black Sea in exchange for Melrose funding the Company's share of certain expenditures for the development of the Doina and Ana fields in a range up to US $90 million depending on prevailing gas prices. The closing of the transaction is subject to regulatory approval, which is expected early in the third quarter.

In a separate transaction from the farm-in, Melrose is to provide a US $12 million short-term operating loan on commercial terms to the Company repayable after one year. The Breagh process continues to evolve and we continue to examine the options to maintain the program towards full development."

http://www.rigzone.com/news/article....

This furnishes proof that bridge loans or loans between project partners is standard operating procedure and is a common business practice. In Canadian Superior Energy's case, without the loan Challenger would have had no money to pay its drilling bills in October of 2008.

Best Wishes; Scott