Business
Compton Announces Sale of Worsley for $270 Million
Compton Announces Sale of Worsley for $270 Million.
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Sept. 4 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -\nCMZ) is pleased to announce that we have entered into a purchase and sale\nagreement with Birchcliff Energy Ltd. for the sale of our conventional light\noil assets at Worsley in the Peace River Arch area of Alberta for total cash\nproceeds of $270 million effective July 1, with closing scheduled for\nSeptember 27, 2007.\n\n\nCurrent production from the property is approximately 3,500 boe/d,\nincluding 4.8 mmcf/d of associated natural gas. Reserves at Worsley are\nestimated to be approximately 11.3 million boe proved and 15.1 million boe on\na proved and probable basis. As such, the sale represents 6% of our proved\nplus probable reserves as of December 31, 2006. The sale price equates to\n$77,143 per boe/d of production and $23.89/boe of proved reserves and\n$17.88/boe of proved plus probable reserves. The value realized on the sale of\nthese high quality assets is reflective of the value of our petroleum and\nnatural gas assets as a whole.\n\n\nAs previously announced, we are also in the process of the divestment of\nour oil and natural gas properties at Cecil, also in the Peace River Arch area\nof Alberta, and are targeting the fourth quarter to finalize this transaction.\nBased upon our December 31, 2006 reserve evaluation, the Worsley property\nrepresents approximately two thirds of the value of the combined Cecil/Worsley\nproperties.\n\n\nProceeds from the sale will reduce our syndicated senior debt and provide\nus with additional financial resources necessary to continue the development\nof our focus natural gas resource plays as outlined in our July 11, 2007\nOperational Update.\n\n\nAdvisory\n\n\n--------\n\n\nCertain information regarding the Company contained herein constitutes\nforward-looking statements under the meaning of applicable securities laws,\nincluding the United States Private Securities Litigation Reform Act of 1995.\nForward-looking statements include estimates, plans, expectations, opinions,\nforecasts, projections, guidance, or other statements that are not statements\nof fact, including statements regarding (i) capital and operating expenditures\n(ii) exploration, drilling, completion, and production matters and (iii) other\nrisks and uncertainties described from time to time in the reports and filings\nmade by Compton ...