Business
Compton Provides Market Commentary
CALGARY, Oct. 8 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE - CMZ) along with all othe...
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Oct. 8 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -\nCMZ) along with all other public market participants has experienced\nunprecedented market turbulence in recent weeks. In response to numerous\ninquiries from shareholders and investment analysts, we wish to provide an\nupdate on the previously announced corporate sale process, outline our\ncorporate debt position, and briefly comment on third quarter operational\nactivities.\n\n\nCorporate Sale Process\n\n\nThe marketing program relating to Compton's corporate sale process\nformally commenced with the opening of a Data Room on September 8, 2008. A\nnumber of substantial potential buyers have signed confidentiality agreements,\nreceived corporate presentations, and are active in the Data Room. Compton and\nits advisors continue to schedule presentations and respond to questions from\ninterested parties.\n\n\nCompton remains committed to the sales process and will provide further\ncomment as we move forward.\n\n\nReduced Corporate Debt\n\n\nOur outstanding debt as at June 30 and September 30, 2008 is summarized\nas:\n\n\n June 30, 2008 September 30, 2008\nSenior Notes (US$450 million) $458.4 million $468.0 million\nUnrealized exchange gain (21.9) million --\n -------------- --------------\n $436.5 million $468.0 million\nSyndicated bank credit facility\n(authorized $500 million) 470.0 million 240.0 million\n -------------- --------------\nTotal $906.5 million $708.0 million\n -------------- --------------\n\n\nThe Senior Notes, bearing a fixed interest rate of 7.625%, were issued in\nlate 2005 and early 2006 and are due December 1, 2013. They are unsecured and\nrank subordinate to the bank credit facility.\n\n\nThe extendable revolving bank credit facility in the amount of\n$500 million is placed with a syndicate of Canadian and international banks.\nThe facility was renewed on July 2, 2008 under substantially identical terms\nand conditions and gave full effect to the property sales discussed in the\nnext paragraph. The next scheduled annual review by the syndicate is mid-2009.\n The credit facility is borrowing based and is secured by Compton's long life\nreserves. The facility is a revolving term facility and our drawings bear\ninterest at 95 basis points above Prime Loan rates and 195 basis points above\nBankers Acceptance rates.\n\n\nDuring the...