Canada Southern Petroleum Ltd. Announces Notice of Conversion to Working Interest at Kotaneelee and Proposed Drilling of Develop

Canada Southern Petroleum Ltd. Announces Notice of Conversion to
Working Interest at Kotaneelee and Proposed Drilling of Development Well 


CALGARY, Alberta, April 30  /PRNewswire-FirstCall/ -- Canada Southern Petroleum
Ltd. (Nasdaq/Pacific: CSPLF; Toronto/Boston: CSW) today announced two important
developments respecting the Company's interests in the Kotaneelee producing gas
field and undeveloped acreage at Kotaneelee in the Yukon Territory.

First, Canada Southern has served notice on the operator and the other working
interest owners in the Kotaneelee field that Canada Southern will convert from
a 30.67% carried interest in Block A, which includes the producing Kotaneelee
gas field, to a 30.67% working interest effective May 1, 2004.  Second, Canada
Southern has been advised that the operator of the Kotaneelee field has served
the working interest owners in such field with a notice of independent
operations proposing to drill a development well in the third quarter of this
year. Upon Canada Southern's conversion, the operator will be required to serve
Canada Southern the same notice of independent operations. The operator has
estimated that the gross costs to drill, complete and equip the proposed well
will be approximately $20 million (Cdn.) and that the well's drilling and
completion will take approximately 6 months.  Canada Southern has been advised
that if this proposed well is successful, production would not likely start
until early next year.

Canada Southern has been advised that holders of a significant working interest
in the Kotaneelee field will not be participating in the proposed well.  Canada
Southern is currently reviewing its participation options regarding this well. 
No assurances can be given that the remaining working interest owners will
proceed with the proposed well or, if the well is proceeded with, whether
Canada Southern will participate.

Canada Southern Petroleum Ltd. is an independent energy company based in
Calgary, Alberta, Canada. The Company is engaged in oil and gas exploration and
development, with its primary interests in producing properties in the Yukon
Territory and British Columbia, Canada. The Company's limited voting shares are
traded on the NASDAQ SmallCap Market and the Pacific Exchange, Inc. under the
symbol "CSPLF," and on the Boston Stock Exchange and the Toronto Stock Exchange
under the symbol "CSW." The Company has 14,417,770 shares outstanding.

Any statements in this release that are not historical in nature are intended
to be, and are hereby identified as "forward-looking statements" for purposes
of the "Safe Harbor Statement" under the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
indicated in the forward-looking statements. Among these risks and
uncertainties are uncertainties as to the costs, pricing and production levels
from the properties in which the Company has interests, the extent of the
recoverable reserves at those properties, and the significant costs associated
with the exploration and development of the properties in which the Company has
interests, particularly the Kotaneelee field. The Company undertakes no
obligation to update or revise forward-looking statements, whether as a result
of new information, future events, or otherwise. 

DATASOURCE: Canada Southern Petroleum Ltd.



CONTACT:  Randy Denecky, Chief Financial Officer of Canada Southern

Petroleum Ltd., [phone]

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