Compton announces farmout and joint venture agreement for its 100% W.I. Montana Bakken Lands

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[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Oct. 13, 2011 /CNW/ - Compton Petroleum Corporation (TSX - CMT)\n (\"Compton\"), announces the signing of a farmout and joint venture\n agreement (the \"Agreement\") between a wholly-owned subsidiary of\n Compton and K2 America Corp. (\"K2\"), a wholly owned subsidiary of\n Guardian Exploration Inc. (TSX - GX) on its Montana Bakken property. \n\n\nThe Agreement relates to Compton's holdings located in the northern part\n of Montana, approximately 80 miles south of the Canada-US border. The\n farmout joint venture will cover all of the Company's 79,000 net acres,\n granting K2 the ability to earn a 50% interest in this area by\n incurring capital expenditures on the exploration and development of\n the property. Compton will retain a 50% working interest in the area\n without incurring any capital expenditure commitments.\n\n\nK2 has committed to completion of a survey program at a minimum cost of\n $2.0 million on or before July 31, 2012, consisting of a combination of\n 2D/3D seismic, airborne geophysical surveys and geochemical imaging on\n the lands. Upon completion of the survey, Compton's Montana lands will\n be divided into three reasonably equal sized earning blocks.\n Thereafter, K2 has committed to spud a test well on one of the earning\n blocks or before December 31, 2012, targeting the Bakken oil formation.\n Upon completion of the well, K2 will earn 50% working interest in that\n earning block and is granted the option to drill one or more option\n wells to earn the un-earned blocks. The option must be exercised within\n 90 days following the drilling rig release date, unless the well proves\n to be a commercial discovery, in which case the option period will be\n extended to one year.\n\n\n\"This farmout joint venture is an important first step in exploring the\n potential of our Bakken lands in Montana,\" said Tim Granger, President\n and Chief Executive Officer. \"We're pleased with this strategic\n partnership. The opportunity provides us with the ability to expand our\n resource base knowledge in an area of interest while moving forward\n with the development of our liquids rich Niton area and our emerging\n oil prospects.\n\n\nThe Agreement will be subject to any required regulatory approval, any\n third party consents, and the entering into of a formal joint venture\n agreement.\n\n\n...

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