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Compton to Continue Development of Significant Natural Gas Resources With 2008 Capital Budget
CALGARY, Jan. 23 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE - CMZ) is pleased to prov...
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 23 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -\nCMZ) is pleased to provide preliminary 2007 operational results and to\nannounce its updated strategic plans, capital program, and budget targets for\n2008. Our 2008 plans are designed to deliver solid organic growth, realize on\nthe significant potential of our assets, maintain an acceptable capital\nstructure, and position Compton to quickly and efficiently react to\nopportunities and industry conditions as they may arise.\n\n\nBudget Highlights\n\n- Continuation of our expanded natural gas focus as announced in 2007\n\n - The 2008 budget builds upon the momentum developed from our\n successful 2007 drilling program\n\n- Significant capital investment program focused on production growth\n\n - $410 million to be expended on our extensive inventory of\n natural gas properties\n - Emphasis on placing incremental production volumes on stream\n - Continued divestiture of non-core properties, substantially all\n oil producing, with $250 million of anticipated proceeds to\n assist in funding the 2008 capital program\n\n- Budgeted 350 well drilling program\n\n - Includes 70 wells targeting higher productivity deeper\n formations in our Niton, Caroline, Hooker, and Callum/Cowley\n properties\n - Continued growth in our Belly River development program, with\n 275 wells to be drilled with an accelerated tie-in program to\n bring production volumes on stream promptly\n\n- Increased production volumes\n\n - Natural gas volumes are projected to average between 196 and\n 202 mmcf/day, a 34% to 38% increase from 2007 levels\n - Oil and liquids volumes projected to average 3,300 bbls/day, a\n 50% decline from the 2007 average following the major property\n sale at the end of Q3 2007 and additional sales budgeted to\n close during 2008\n - Combined production volumes projected to average between\n 36,000 and 37,000 boe/day, a 16% to 19% increase over average\n 2007 volumes\n\n- Higher cash flow\n\n - Cash flow is projected in the $245 to $255 million range,\n approximately 30% higher than expected 2007 final results,\n based upon average 2008 benchmark AECO natural gas pricing of\n $6.98/mcf (US$7.64/mcf NYMEX) and $80.00/bbl for Edmonton Light\n crude oil (US$81.00 WTI)\n\n- Capital structure\n\n - Anticipated operating cash flow and proceeds from asset sales\n...