CALGARY, May 4, 2012, 2012 (Canada NewsWire via COMTEX) --Compton Petroleum Corporation (TSX - CMT)
announces receipt of notice from the lenders ("Lenders") of an
extension in the repayment of funds drawn over the available amount of
its $110.0 million credit facility (the "Facility"), which was
previously due May 7, 2012. The Facility was reduced from $140.0
million to $110.0 million in early April primarily due to the Lenders'
view of the economic environment, specifically lower natural gas price
forecasts. Spot natural gas prices have fallen by more than 30% over
the last three months and by more than 40% over the last six months.
The repayment date has been extended to between May 23, at the earliest,
and June 8, 2012, based on Compton's progress with its
recapitalization. The Lenders have indicated they are supportive of the
Corporation's plans to explore recapitalization options through the
sale of assets and/or raising equity financing. Compton is also
considering opportunities to leverage its substantial tax pool base.
Compton and RBC Capital Markets continue their efforts to explore a
variety of alternatives to resolve this issue.
About Compton Petroleum Corporation
Compton Petroleum Corporation is a public corporation actively engaged
in the exploration, development and production of natural gas, natural
gas liquids, and crude oil in western Canada. The majority of our
operations are located in the Deep Basin fairway of the Western Canada
Sedimentary Basin, providing multi-zone potential for future
development and exploration opportunity.
As natural gas comprises approximately 84% of Compton's production, the
Corporation's 2012 program is impacted by the current natural gas price
outlook. When natural gas markets recover in the future, Compton can
focus on our highest-return, liquids-rich natural gas area at Niton and
balancing our portfolio through investment in emerging crude oil
opportunities. Compton is well positioned in emerging oil plays that
target the Bakken/Big Valley, Ellerslie and Glauconite Formations in
the Southern Plains area as well as future exploratory potential
through the joint venture on its Montana Bakken/Big Valley lands.
Through further improving operating efficiencies, maximizing returns on
capital invested and focusing on higher return assets, Compton will
create value by providing appropriate investment returns for
shareholders. Compton's shares are listed on the Toronto Stock Exchange
under the symbol CMT.
Advisories
Forward-Looking Statements
Certain information regarding the Corporation 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 Corporation'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 views of its credit facility and prospective activities.
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 Corporation's forward-looking
statements are expressly qualified in their entirety by this cautionary
statement.
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SOURCE: Compton Petroleum Corporation
Susan J. Soprovich Director, Investor Relations Ph: (403) 668-6732 C.W. Leigh
Cassidy Vice President, Finance & CFO Ph: (403) 205-5812 Fax: (403) 237-9410
Email:investorinfo@comptonpetroleum.com Website:www.comptonpetroleum.com