News release via Canada NewsWire, Calgary 403-269-7605
Attention Business Editors:
Compton reports $150.2 million asset sales, further debt reduction &
increased capital program
CALGARY, June 7 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -
CMZ) is pleased to announce that it has entered into purchase and sale
agreements relating to the disposition of a portion of its natural gas assets
located in the Niton and Gilby areas in Central Alberta. Gross proceeds from
the transactions are expected to be $150.2 million, which will be used to
reduce outstanding indebtedness and provide additional capital for Compton's
2010 development program.
The properties to be sold produced approximately 3,100 boe/d on a
combined basis at the effective date of the transactions and were assigned net
proved and net proved plus probable reserves of 9.4 MMboe and 14.1 MMboe,
respectively, at December 31, 2009. This results in overall sale metrics of
$48,500 per equivalent flowing barrel of production and $15.90 and $10.64 per
BOE of reserves, for proved and proved plus probable, respectively.
Upon completion of the transactions, Compton will retain a dominant
position in the Niton area, providing significant upside potential through its
multiple zone development opportunities and contiguous land blocks. The
Corporation plans to drill 11 gross wells in this area in 2010, targeting a
number of prospective formations. Compton will continue to hold a significant
overall land position, totaling 165,019 gross (124,425 net) acres in the area,
of which 93,105 gross (77,545 net) acres are undeveloped.
These property sales represent another step in Compton's continuing
initiatives to reduce debt, streamline operations and better position itself
for growth opportunities.
"These transactions highlight the value of our assets, which is not
currently being reflected in our share price," said Tim Granger, President and
Chief Executive Officer. "The overall