Compton provides 2009 Guidance update

    CALGARY, April 8 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -
CMZ) announces its revised guidance along with the Company's forward-looking
strategy for 2009.

    2009 Guidance

    Continuing reduced demand for crude oil and natural gas and the resulting
low commodity prices is challenging the industry, including Compton, in terms
of project economics, revenue and funds flow from operations. As a result, we
have revised our 2009 plans in light of the current circumstances to assume a
more defensive posture during these uncertain times. Our current focus will be
on asset optimization and evaluation of opportunities within our existing
asset base to position the organization for successful development once
commodity prices rebound. The following represents our revised guidance for

    Average daily production (boe/d)                         20,500 - 21,500
    G&A expenses ($ millions)                                      $28 - $29
    Operating costs ($ millions)                                   $90 - $95
    Funds flow from operations ($ millions)                        $60 - $70
    Capital expenditures ($ millions)                                    $40

    Compton's guidance is based on average 2009 forecast prices of $4.90 per
mcf of natural gas (AECO) and $64.00 per barrel of crude oil (Edmonton Sweet
Light). A $0.25 per mcf change in natural gas prices is expected to result in
an $8.4 million change in funds flow from operations, and a $1.00 per boe
change in crude oil prices is expected to result in a $0.4 million change in
funds flow from operations.
    We have initiated a corporate restructuring process with a concentrated
emphasis on continued capital efficiencies and reducing our internal cost
structures. Due to these initiatives, we expect to recognize a gross savings
in G&A expenses of approximately $9 million, before recoveries and amounts
capitalized, in comparison to 2008.

    Corporate Strategy

    Our strategy during this period of economic uncertainty is to position
the Company such that we have the ability to benefit from our substantial
asset base and create additional value for our shareholders. We are
implementing a measured and flexible investment approach for 2009 with the
following objectives:

    -   Strengthen Compton's capital structure by considering possible
        combinations of farm-ins, asset sales, and additional debt and/or
        equity capital;

    -   Improve our internal cost structure;

    -   Implement a disciplined business model that will ensure an
        appropriate return on capital investments; and

    -   Further strengthen strategic planning and oversight processes to
        ensure that performance meets expectations.

    These priorities are well underway:

    -   The restructuring process begun in late 2008 is largely complete;

    -   Various options for change to our capital structure are being
        evaluated with advisors having been engaged to assist with this

    -   All cost areas are being addressed to improve efficiencies; and

    -   Required rate of return hurdles are being set for all projects.

    We require a natural gas price of $5.50 to $7.50 per mcf (AECO) to drill
new wells, depending on the area and well type. Should economic circumstances
improve, we will be able to implement an expanded capital program in 2009.
Growth in production of our reserve base, given the current commodity price
environment and our focus on value creation, will be complementary to our
investment strategy and not a key driver.
    Our overall short term strategy is to position the Company such that,
once an economic recovery occurs and commodity prices strengthen, we will have
the ability to develop and realize on our sizable long-life asset base and
create additional value for our shareholders.

    Annual and Special Meeting of Shareholders

    Compton's Annual and Special Meeting of Shareholders is scheduled for May
11, 2009 at 3:30 p.m. (Calgary time) in the Historical Ballroom on the Fourth
Floor of the Calgary Chamber of Commerce, 517 Centre Street South, Calgary,
Alberta, Canada. A web cast of the Annual and Special Meeting will be
available on Compton's website at; all shareholders
are encouraged to attend either in person or electronically.


    Use of Boe Equivalents

    The oil and natural gas industry commonly expresses production volumes
and reserves on a barrel of oil equivalent ("boe") basis whereby natural gas
volumes are converted at the ratio of six thousand cubic feet to one barrel of
oil. The intention is to sum oil and natural gas measurement units into one
basis for improved measurement of results and comparisons with other industry
participants. We use the 6:1 boe measure which is the approximate energy
equivalency of the two commodities at the burner tip. However, boes do not
represent a value equivalency at the well head and therefore may be a
misleading measure if used in isolation.

    Forward Looking-Statements

    Certain information regarding the Company 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 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, and other risks and
uncertainties described from time to time in the reports and filings made with
securities regulatory authorities by Compton. Statements relating to
"reserves" and "resources" are deemed to be forward-looking statements, as
they involve the implied assessment, based on estimates and assumptions, that
the reserves and resources described exist in the quantities predicted or
estimated, and can be profitably produced in the future.
    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
2009 Guidance and Corporate Strategy. Compton may, as considered necessary in
the circumstances, update or revise the forward-looking statements, whether as
a result of new information, future events, or otherwise, but Compton does not
undertake to update this information at any particular time, except as
required by law. Compton cautions readers that the forward-looking statements
may not be appropriate for purposes other than their intended purposes and
that undue reliance should not be placed on any forward-looking statement. The
Company's forward-looking statements are expressly qualified in their entirety
by this cautionary statement.

    Non-GAAP Financial Measures

    Included in the news release are references to funds flow from
operations, a term used in the oil and gas industry which is not defined by
GAAP in Canada and consequently is referred to as a non-GAAP measure. Non-GAAP
measures do not have any standardized meaning and therefore reported amounts
may not be comparable to similarly titled measures reported by other
    Funds flow from operations should not be considered an alternative to, or
more meaningful than, cash provided by operating, investing and financing
activities or net earnings as determined in accordance with Canadian GAAP, as
an indicator of the Company's performance or liquidity. Funds flow from
operations is used by Compton to evaluate operating results and the Company's
ability to generate cash to fund capital expenditures and repay debt.

    About Compton Petroleum Corporation

    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: Tim Granger, President & CEO, Norm Knecht, VP,
Finance and CFO, Phone: (403) 237-9400, Fax: (403) 237-9410, Email:, Website:

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