Business
Compton Announces Second Half 2006 Operational Plans
Compton Announces Second Half 2006 Operational Plans.
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\n\nCALGARY, June 28 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -\nCMZ) is pleased to provide an update of our operational plans for the second\nhalf of 2006.\nDuring regularly scheduled meetings held late last week, Management and\nthe Board of Directors reviewed the status of Compton's 2006 capital\nexpenditure and drilling programs in light of first half 2006 operating\nresults and current industry and world economic conditions.\n\nOn the operational front, Compton achieved considerable success during\nthe first half. We expect to drill approximately 190 wells during the first\nsix months of 2006. Our success rate on wells drilled to date is 90%. The\ndevelopment of our natural gas resource and conventional crude oil plays has\nadvanced in all areas. Additionally, we are encouraged by recent regulatory\ndevelopments that will, when enacted, benefit the future development of our\nshallow gas/CBM play. Despite our successes, Compton, and the industry as a\nwhole, is experiencing a number of challenges. These include:\n\n>\n\nMeeting the Challenge\n---------------------\n\nCompton is in a strong position to meet these challenges. We have a solid\nreserve and production base, an extensive land position, and have developed\nour resource plays to the point where the majority are known commodities. They\nare lower risk and economically viable at current or even lower commodity\nprices. We have the benefit of a Management Team and Board of Directors who\nhave previously experienced similar conditions.\nWe have addressed these challenges and modified our short-term plans for\nthe remainder of 2006, giving full consideration to their impact and\nimplications for the longer term. Compton is well positioned and has a number\nof available options to consider in meeting these challenges. Our corporate\ndebt is structured to provide Compton with financial flexibility. Seventy\npercent of our existing debt is not due until 2013, and an expected additional\n$300 million will be available under our soon to be expanded bank credit\nfacilities. We have a number of very liquid, quality non-core properties, the\ncapital from which, when sold, will be redeployed to assist in funding the\nfuture development of our resource plays. We are not committed to any\nsignificant long-term capital obligations or land expiry issues that would...