Compton Announces Termination of Corporate Sale Process

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[{"type":"text","content":"\n\n\n\nCALGARY, Oct. 30 /CNW/ - Compton Petroleum Corporation (TSX - CMT; NYSE -\nCMZ) advises that the previously announced corporate sale process has been\nterminated. The marketing efforts for this process, in conjunction with\nTristone Capital Inc. and UBS Securities Canada Inc., commenced in late August\nand the data room opened September 8th. A significant number of interested\nparties signed confidentiality agreements and received corporate\npresentations. Considerable interest was shown in Compton's highly focused\nnatural gas operations and active evaluations of the company continued through\nthe end of last week. None of these parties made an acceptable offer for all\nof Compton's common shares, citing the unprecedented public market turbulence\nin recent weeks. Accordingly, the Board of Directors has ceased all marketing\nefforts to effect a corporate sale.\n\n\nSeveral parties did express considerable interest in purchasing selected\nproperties where the capital requirement would be more manageable than the\ncost of a corporate transaction. Rather than embarking upon an asset sale\nprocess during these uncertain times, Compton believes that it should retain\nits high quality reserve base. We are a pure natural gas play of Compton\noperated, high working interest properties with a long reserve life. All of\nour reserves are located in Alberta primarily in the Deep Basin - Niton,\nHooker, and Callum/Cowley - as well as the shallow gas Plains Belly River and\nEdmonton Group in Southern Alberta.\n\n\nGiven the current environment, it is unrealistic to expect to conclude a\nsatisfactory transaction that properly recognizes our asset values. As such,\nCompton has decided to focus on operating as an independent company. The\ndirectors and management are committed to the enhancement of shareholder value\nand to providing a rewarding environment for all employees to achieve this\ngoal.\n\n\nRETIREMENT OF THE CEO\n\n\nMr. Ernie Sapieha has advised the Board of Directors of his intention to\nretire as President & Chief Executive Officer. Mr. Sapieha will remain active\nas a significant shareholder and director of Compton and will continue as CEO,\nworking with a newly formed Executive Committee of the Board, until his\nsuccessor is named.\n\n\nFOCUS OF CAPITAL EXPENDITURE PROGRAM\n\n\nThe immediate focus of Compton's on-go...

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