Mike Coolen's affidavit on February 22, 2009 is interesting as it raises a number of points as to how BGI's asking the court to appoint a Receiver (appointed on February 11, 2009) has caused Canadian Superior to suffer damages.

http://www.deloitte.com/dtt/cda/doc/...

1) On page 1 item 3 Mike Coolen stated: " very late in the afternoon on Friday February 20, 2009, CSEI received a Notice of Termination of Lease ("Termination") of its future Calgary office premises from its landlord. The Termination clearly cites the Receivership Order as the Event Of Default under the Lease entitling the landlord to terminate it. As a result of the Termination, a $500,000.00 deposit may become forfeited and CSEI may become liable for other consequential damages."

2) On page 11 item number 11 it states the following: " The value of CSEI's Participating Interest will be severely negatively impacted by the continued existance of the Receivership Order. Already it's stock price has precipitously delined and its banker has given a 10 day Notice of Intention to Enforce Security".

3) On page 11 item 15, it states in the following: "As to the precipitous decline in CSEI's share price, CSEI's shares closed at $1.18 on Tuesday February 10, 2009, the day before the Receivership Order was issued. The closing price on Friday, February 20, 2009 was $0.46"

So these are some of the repercussions that BGI unleashed on Canadian Superior Energy which initially resulted from BGI's obtaining a court order to appoint a Receiver. It appears that there is a lot of bad blood now between British Gas, Canadian Superior Energy and Challenger Energy. Had BGI just loaned the $48 million dollars to SNG to pay the flow testing SNG could have paid BGI the money back when it sold its share of Block 5(C); and Challenger could have paid back SNG once it sold its share of Block 5(C)...........This didn't have to go to court. Nature of the beast I guess.

Cheers; Scott