Compton Petroleum Corporation News Release



    CALGARY, Dec. 17 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -
CMZ) will be announcing its plans for 2008, including budgeted expenditures,
drilling programs and projected production targets for the year, in early
January 2008.
    On December 14, 2007, a significant shareholder representing 19.8% of the
shares outstanding, made a regulatory filing in the United States which
included, among other topics, a statement that in its view Compton's common
shares are trading at a significant discount to the shareholder's perception
of the Company's net asset value, and a request of Compton's Board of
Directors to consider strategic alternatives to bridge this gap. The Board
will, on behalf of all shareholders, fully consider this filing.
    The current business environment for Compton and the Canadian natural gas
industry at large is challenging to say the least. Our current share price
reflects the depressed state of the natural gas industry, particularly in
Alberta, resulting from (a) low natural gas prices, (b) the rapid appreciation
of the Canadian dollar, (c) the high cost structure of the basin, and (d)
regulatory issues including uncertainties relating to the proposed new Crown
royalty structure in Alberta. Given these cyclical bearish factors and the
upcoming release of our 2007 year end reserve report and audited financial
statements, the Board and Management are puzzled by the shareholder's request
and particularly with its timing.
    While 2007 has been a difficult operating year for the industry in
general, Compton has been successful on a number of fronts. We will have
completed a successful drilling program, drilling approximately 340 wells
during the year, including several promising exploration successes, and expect
to meet our 2007 production targets. Compton concluded the sale of several
properties, including the major sale of the Worsley oil field, for proceeds in
excess of $300 million with the intention of redeploying the proceeds into our
large natural gas resource plays.
    There has been considerable change in 2007, from our operational
activities to the external business environment. These will be reflected in
our two principal year end reports. Within the next two months we will receive
the report of our independent reserves evaluator, Netherland Sewell &
Associates Inc., which will provide in depth detail on the value of our
reserves. Within the next three months we will also be issuing our audited
financial statements.
    We remain bullish on the outlook for natural gas and are confident that
our longer term strategy is sound and achievable. This strategy was
communicated in our July 11, 2007 press release and updated as part of our
third quarter press release on November 12, 2007. In essence, our strategy is
to accelerate the drilling of our large inventory of natural gas reserves and
convert them to incremental production volumes. We believe Compton's solid
reserve base, extensive land position, large inventory of drilling prospects,
and projected growth for 2008 bode well. The implementation of our strategy
continues to be a dynamic process as we must constantly respond to factors
beyond our control.
    The Board together with Management reviews, on a regular basis, options
available to best create value for all of our shareholders. We are
stakeholders - the Board, management and most of our employees have a
significant investment in Compton owning approximately 10.2% of the
outstanding shares (14.5% fully diluted).
    While Compton is opportunity rich, the Board must endeavor to capitalize
on these opportunities in a timely fashion. The Board continues to review
Compton's competitive position and will take appropriate steps to ensure our
actions will be in the best interest of all shareholders.
    We look forward to announcing our 2008 plans in early January including
the economics of our plays and our ability to execute on these plans.

    Forward-Looking Statements

    Certain information regarding the Company contained herein constitutes
forward-looking statements under the meaning of applicable securities laws,
including 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) capital and operating expenditures
(ii) exploration, drilling, completion, and production matters and (iii) 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 expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such 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
the Company'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. Compton may, as considered necessary in the
circumstances, update or revise forward-looking information, whether as a
result of new information, future events, or otherwise. The Company'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: E.G. Sapieha, President & CEO or N.G. Knecht,
VP Finance & CFO, Telephone: (403) 237-9400, Fax (403) 237-9410, Website:
www.comptonpetroleum.com, Email: investorinfo@comptonpetroleum.com

Organization Profile

MFC Energy Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890