Abandon ship! Previously I wrote that:

It appears that Admiral Noval has turned his flagship, the Victory into the wind, and fired a broadside to warn Anderson's ship, the Intruder, that the next volley fired will have a devastating effect. Admiral Noval knows these waters well having sailed them his entire life, whereas Captain Anderson finds himself in unfamiliar waters.

Well, now it appears that I was partially wrong, in that Admiral Noval after having the Victory fire its broadside to warn off the Intruder under Captain Anderson, didn't know the waters as well as he thought he did. For in an act of supreme confidence or sheer arrogance, as he brought the Victory around after firing its broadside, the Victory struck a submerged reef not on the existing charts and put a hole in the bottom of the Victory. With the Victory taking on water, Admiral Noval abandoned the ship along with the Victory's Captain Coolen and the two of them were last seen in Admiral Noval's private lifeboat rowing off into the sunset.

Oh my, now the reality is sinking in. No pun intended.

In the Notice Of The Annual And Special Meeting Of Shareholders of Canadian Superior Energy Inc. dated May 15, 2008 it states the following on page 14:

"The Company has a contract with Gregory Noval, which provides that in the event Mr. Noval involuntarily ceases to be Executive Chairman for any reason, excluding death or incapacity, other than termination with cause or if the Company is bought out, merged, amalgamated or sells substantially all or the majority of its assets or if immediately after three years from October 1, 2007 the Company fails to renew his contract for a further three years, the Company shall pay in cash equal to three times annual salary." which Greg Noval collected on June 26, 2007 when he stepped down as the CEO of the company in accordance with this agreement. It came to the sum of $1,265,660.00

"In addition, in the event Mr Noval ceases to be Executive Chairman and/or a Director of the Company for any reason whatsoever including the event of his death or incapacity, the Company shall pay three times the value of all benefits being paid or payable to him." This could amount to another $1,265,660.00 which he will collect now as he is stepping down as Executive Chairman now as he is leaving the Company.

As for Mike Coolen: " The company also has an executive agreement with Michael (Mike) Coolen, which provides that if Mr. Coolen ceases to be President and/or a director of the Company for any reason whatseover, including death, the Company shall pay to Mr. Coolen or his estate or legal representative an amount equal to three times Mr. Coolen's then annual salary and three times the value of all benefits to which Mr. Coolen is then entitled." His salary due would be $1,016,253.00 and there is no telling what the benefits would amount to as I don't whether benefits include stock options.

As you can see, abandoning ship can be quite profitable to management at the shareholder's expense. The last time that I looked share holder's value has not appreciated. Now, there is no telling what the share price will be with an abandoned company under CCAA without an Executive Chairman and without a President and Chief Operating Officer with Noval and Coolen's experience.

Stay tuned. Billable hours.

Best Wishes; Scott