In the Monitor's Second Report to the Court pertaining to Challenger Energy's CCAA protection proceedings, dated April 17, 2009 the following points are of interest to Canadian Superior Energy's shareholders:

http://www.alger.ca/challenger/Filed...

30. "Legal counsel for the Company is drafting purchase and sales agreement for the interested parties to further develop the sales process."

31. "The Monitor has also been advised by the Company and Peters that other parties are still interested in putting bids on the property despite missing the non-binding offer date."

32. "The interested parties are believed to be interested in purchasing CSEI interest as well , and as such the Company is trying to open communication with CSEI to help complete a potential deal for some or potentially seventy percent interest in Block 5(c)."

49. "CSEI made application to Court on March 23, 2009 requesting that the Court lift the stay to allow CSEI to serve a Notice Of Default under the PA on Challenger and for a declaration that the time for remedying the default shall not be stayed. The application was approved but counsel for the various interested parties have not settled upon the final wording of the Order."

50. "Although the stay has been lifted, CSEI cannot take any further actions with regard to the default without further application to the Court."

52. "CSEI and BGI are currently engaged in a dispute regarding which party has ownership rights to Block 5(c). The two parties are in the early stages of arbitration over this matter. Challenger has not been given notice to participate nor is a party to the arbitration commenced by BGI."

53. " The Monitor is not aware of any progress that has been made in this proceeding."

54 "The stay period expires on April 20, 2009. Challenger will be applying at that time for an extension of the stay until June 22, 2009."

So this is the latest news on Canadian Superior's court actions against Challenger Energy and BGI. They are still heavily involved in the CCAA protection process in terms of both Challenger and Canadian Superior reorganizing and restructuring their companies. Progress has been made as Challenger and Canadian Superior Energy are in contact now discussing the possible sale of up to 70% of their stake in Block 5(c). Also, new parties are coming late to the table to register bids for Block 5(c) who missed the date set by Scotia Waterous for initial bids. (I don't know how they can do that but hey, we'll take their money. So a sale of Block 5(c) looks promising but both Challenger and Canadian Superior Energy will likely ask and be granted extensions to June 22, 2009. Billable hours.

Keep the faith; Scott

Best Wishes; Scott