Compton Announces Termination of Corporate Sale Process



    CALGARY, Oct. 30 /CNW/ - Compton Petroleum Corporation (TSX - CMT; NYSE -
CMZ) advises that the previously announced corporate sale process has been
terminated. The marketing efforts for this process, in conjunction with
Tristone Capital Inc. and UBS Securities Canada Inc., commenced in late August
and the data room opened September 8th. A significant number of interested
parties signed confidentiality agreements and received corporate
presentations. Considerable interest was shown in Compton's highly focused
natural gas operations and active evaluations of the company continued through
the end of last week. None of these parties made an acceptable offer for all
of Compton's common shares, citing the unprecedented public market turbulence
in recent weeks. Accordingly, the Board of Directors has ceased all marketing
efforts to effect a corporate sale.
    Several parties did express considerable interest in purchasing selected
properties where the capital requirement would be more manageable than the
cost of a corporate transaction. Rather than embarking upon an asset sale
process during these uncertain times, Compton believes that it should retain
its high quality reserve base. We are a pure natural gas play of Compton
operated, high working interest properties with a long reserve life. All of
our reserves are located in Alberta primarily in the Deep Basin - Niton,
Hooker, and Callum/Cowley - as well as the shallow gas Plains Belly River and
Edmonton Group in Southern Alberta.
    Given the current environment, it is unrealistic to expect to conclude a
satisfactory transaction that properly recognizes our asset values. As such,
Compton has decided to focus on operating as an independent company. The
directors and management are committed to the enhancement of shareholder value
and to providing a rewarding environment for all employees to achieve this
goal.

    RETIREMENT OF THE CEO

    Mr. Ernie Sapieha has advised the Board of Directors of his intention to
retire as President & Chief Executive Officer. Mr. Sapieha will remain active
as a significant shareholder and director of Compton and will continue as CEO,
working with a newly formed Executive Committee of the Board, until his
successor is named.

    FOCUS OF CAPITAL EXPENDITURE PROGRAM

    The immediate focus of Compton's on-going capital expenditure program
will be on completion and tie-in activities to bring reserves on production.
The drilling program will continue to concentrate on high impact
opportunities, particularly horizontal multi stage frac locations at Niton
targeting the Rock Creek and Ellerslie formations where Compton has
experienced considerable recent success. A complete operational report will be
provided in the upcoming third quarter report. In this current uncertain
environment, capital preservation is important and therefore Compton plans to
execute a tightly focused capital expenditure program, limited to available
cash flow, until such time as the operating environment becomes clearer.

    CORPORATE DEBT STRUCTURE

    Compton's outstanding debt is structured on a term basis with no short
term component. We are in full compliance with all covenants. Our outstanding
debt as at September 30, 2008 was:

    
             Senior Notes (US$450 million)        $476.9 million
             Syndicated bank credit facility
             (authorized $500 million)             240.0 million
                                                  --------------
             Total                                $716.9 million
                                                  --------------
    

    The Senior Notes bear a fixed interest rate of 7.625% and are not due
until December 1, 2013. They are unsecured and rank subordinate to the bank
credit facility.
    The extendable, revolving bank credit facility in the authorized amount
of $500 million is placed with a syndicate of Canadian and international
banks. The facility was renewed on July 2, 2008 under substantially identical
prior terms and conditions and gave full effect to the property sales
concluded in the third quarter. The next scheduled annual review by the
syndicate is due mid-2009; if not extended at that time the facility converts
to a term basis to mid-2010. The credit facility is borrowing based and is
secured by Compton's long life reserves. The facility is a revolving facility
and our drawings bear interest at 95 basis points above Prime Loan rates and
195 basis points above Bankers Acceptance rates.
    As at September 30, 2008, the unutilized credit lines were $260 million.

    ADVISORY

    Certain information regarding Compton contained herein constitutes
forward-looking information and statements and financial outlooks
(collectively, "forward looking statements") under the meaning of applicable
securities laws, including Canadian Securities Administrators' National
Instrument 51-102 Continuous Disclosure Obligations and the United States
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include estimates, plans, expectations, opinions, forecasts, projections,
guidance, or other statements that are not statements of fact, including
statements regarding (i) cash flow and capital and operating expenditures,
(ii) exploration, drilling, completion, and production matters, (iii) results
of operations, (iv) financial position, and (v) other risks and uncertainties
described from time to time in the reports and filings made by Compton with
securities regulatory authorities. Although Compton believes that the
assumptions underlying, and expectations reflected in, such forward-looking
statements are reasonable, it can give no assurance that such assumptions and
expectations will prove to have been correct. There are many factors that
could cause forward-looking statements not to be correct, including risks and
uncertainties inherent in Compton's business. These risks include, but are not
limited to: crude oil and natural gas price volatility, exchange rate
fluctuations, availability of services and supplies, operating hazards, access
difficulties and mechanical failures, weather related issues, uncertainties in
the estimates of reserves and in projection of future rates of production and
timing of development expenditures, general economic conditions, and the
actions or inactions of third-party operators. The forward-looking statements
contained herein are made as of the date of this news release solely for the
purpose of generally disclosing Compton's updated plans, capital program and
debt structure. Compton undertakes no obligation to update publicly or revise
any forward looking statements, whether as a result of new information, future
events or otherwise, except as required by law. Compton cautions readers that
the forward-looking statements may not be appropriate for purposes other than
their intended purposes. Compton's forward-looking statements are expressly
qualified in their entirety by this cautionary statement.

    Compton Petroleum Corporation is a Calgary-based public company actively
engaged in the exploration, development, and production of natural gas,
natural gas liquids, and crude oil in the Western Canada Sedimentary Basin.
Compton's shares are listed on the Toronto Stock Exchange under the symbol CMT
and on the New York Stock Exchange under the symbol CMZ.

    %SEDAR: 00003803E          %CIK: 0001043572




For further information:

For further information: M.F. Belich, Chairman of the Board, or E.G.
Sapieha, President & CEO, Telephone: (403) 237-9400, Fax (403) 237-9410.
Website: www.comptonpetroleum.com, Email: investorinfo@comptonpetroleum.com

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