Compton reports second quarter 2009 results

About this update from Cullinan Metals Corp

[{"type":"text","content":"\n\n\n\nCALGARY, Aug. 6 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -\nCMZ) reports its financial and operating results for the three months ended\nJune 30, 2009.\n\n\nThe full text of Management's Discussion and Analysis ("MD&A") and the\nCorporation's audited consolidated financial statements can be found on the\nCorporation's website at www.comptonpetroleum.com and at www.sedar.com\n\n\nSummary of Quarterly Performance\n\n- Completion of the annual review of the credit facility with the\n borrowing base exceeding the Corporation's requirements for 2009\n- Assembly of the new management team, who began to work on the go-\n forward strategy for the Corporation\n- Funds flow from operations of $9.6 million, or $0.08 per diluted\n share\n- Adjusted operational earnings for the quarter was a loss of\n $15.5 million, largely due to non-cash items such as unrealized\n foreign exchange and other gains\n- Net earnings of $19.8 million, or $0.16 per diluted share\n- Average production was 21,440 boe/d, a decrease of 30% relative to\n 2008 due to property dispositions, natural declines and the lack of\n volume additions from drilling in the quarter\n- Capital expenditures of $15.5 million\n\n\nNatural gas prices remain depressed with some of the lowest prices being\nrealized since 2002. Though management believes that the expected longer term\ntrend is for increased commodity prices through 2010, the current price level\nhas impacted Compton's financial results. In addition, capital markets\nappeared to be showing indications of opening up, with new energy equity\nissues increasing 52% in May and June compared to the first four months of the\nyear.\n\n\nIn this environment, Compton remains focused on its recapitalization and\nwill continue with its defensive strategy of living within funds flow and\ninvesting in projects that meet internal rate of return hurdles, until a clear\nsignal in the recovery of commodity prices is evident. Throughout the first\nhalf of 2009, the Corporation strengthened its management team, began\nimprovements to systems and processes, and initiated strategies to optimize\nasset development. Compton's revitalized culture is committed to delivering on\nits promises and providing value-accretive results in all of its activities.\nThese efforts will be supported by the Corporation's discip...

More updates from Cullinan Metals Corp