Compton To Sell Bigoray Assets

Compton Petroleum Corporation (Toronto: CMT) has agreed to sell some of its BigoRay assets near the Niton area in Central Alberta to an undisclosed buyer for gross proceeds of $17 million.

As part of this sale agreement, approximately 5,600 gross acres of Cardium Formation mineral rights at the Corporation's Niton property will also be sold. In total, 21,280 gross acres will be sold, which represents 16% of Compton's total 132,180 gross acres in the area. Gross proceeds from the transaction will be used to repay a portion of the $30.0 million drawn over the available amount of Compton's $110.0 million credit facility, which was reduced by its creditors from $140 million in early April.

The properties to be sold produced approximately 450 barrels of oil equivalent (boe) per day on an average combined basis over the past three months and were assigned net proved and net proved plus probable reserves of 1.7 million boe and 2.1 million boe, respectively, on Dec. 31, 2011. This results in overall sale metrics of approximately $37,800 per equivalent flowing barrel of production and approximately $10.15 and $8.11 per BOE of reserves, for proved and proved plus probable, respectively.

Compton will continue to hold a significant overall land position in the Niton area, totaling approximately 110,900 gross (75,450 net) acres, of which 39,145 gross (31,515 net) acres are undeveloped. The transaction is expected to close at the end of July.