PROCEEDS TO BE USED TO REDUCE OUTSTANDING COMPTON INDEBTEDNESS AND PROVIDE ADDITIONAL CAPITAL FOR THE COMPANY’S 2010 DEVELOPMENT PROGRAM.
ANY COMPANY (OR PERSON FOR THAT MATTER) PAYING OFF DEBT IS GOOD NEWS!! THIS NEWS SHOULD HAVE SHAREHOLDERS IN AT LEAST A “HOLD” AND THEN A POSITIVE BUY STAGE. I’D LIKE TO PREDICT ANDSEE A 30% RETRACEMENT OF RECENT SHARE DEPRECIATION BY THE THIRD WEEK OF JULY. ARE YOU IN?
Compton closes $115 million asset sale transaction
Compton Petroleum Corporation (TSX - CMT) is pleased to announce that it has completed one of the sales transactions from its previously announced disposition of a portion of its assets in the Niton and Gilby areas in Central Alberta for proceeds of $115 million. Gross proceeds from both sales transactions are expected to be $150 million, with the remaining sales transaction expected to close in mid-July.
In addition, the Corporation has received the final payment of $9.5 million for the remaining 0.5% tranche of its sale of its previously announced 5.0% overriding royalty ('ORR'). The ORR represents 5.0% of the gross production revenue on the Corporation's existing land base less certain transportation costs and marketing fees.
The proceeds from the transactions will be used to reduce outstanding indebtedness and provide additional capital for Compton's 2010 development program.
THIS PRESS RELEASE WAS ALSO A BIG EYE-OPENER BUT WENT UNNOTICED IN THIS BLOG OF AGORACOM FOLLOWERS.
IS THERE ANYONE OUT THERE??
Compton Petroleum Corporation (TSX - CMT) announced today that effective Friday, June 25, 2010, its common shares will discontinue trading on the New York Stock Exchange (the "NYSE"). The Corporation's common shares will continue to trade on the Toronto Stock Exchange (the "TSX") under the symbol CMT as will its warrants under the symbol CMT.WT.
As financial markets have become significantly more global and liquid, the benefits of a multiple listing have been reduced while substantially adding to Compton's costs. As a result, the Board has concluded that it is in the best interests of the Corporation and its shareholders to delist from the NYSE under the current circumstances. In reaching this decision, the Board assessed the option of a reverse split of Compton's common shares to meet the NYSE's price requirement (that a company's common stock trade at a minimum average closing price of US$1.00 per share during any consecutive 30-day trading period) and determined that it is not in the best interests of shareholders to effect a share consolidation.
"We've achieved considerable success over the past year in: reducing our debt levels by approximately 50%, assuming the $150 million proceeds from our recently announced asset sales are applied to debt; and improving operational performance through better drilling results and lower operational costs," said Tim Granger, President and Chief Executive Officer. "We are executing on our strategic plan and increasing return on investment. Though we cannot control our stock price, we believe that the market will recognize the results of our actions that have created a stronger company with substantial potential for growth."
Following delisting, Compton will continue to file or furnish reports with the SEC. However, the Corporation also announced that it intends at a future date, when permitted under SEC rules, to terminate the registration of its common shares with the SEC.
