Compton Petroleum Corporation (“Compton” or the “Company”) has initiated a process for the divestiture of selected non-core assets and has retained Scotia Waterous Inc. (“Scotia Waterous”) as its exclusive financial advisor to assist in this process.
OVERVIEW
The offering is grouped into four packages (the “Packages”) as outlined on the following map and property descriptions. The offering includes additional lands outside the package areas; comprehensive land schedules will be provided in the data room.
TOTAL OFFERING HIGHLIGHTS
- Four packages offering high working interest and operatorship
- Significant inventory of opportunities including exploration , development and production optimization
- Ownership of key facilities and infrastructure in the area
- Extensive 3-D seismic coverage
- Large land position including 167,000 net acres of undeveloped land
|
- Production (1)
- March 2008: 3,661 boe/day; (76% gas)
- Reserves (2)(3)
- Total Proved: 11.6 MMboe
- Proved +Probable: 16.7 MMboe
- Land
- 610,873 acres (307,985 net)
|
PACKAGE HIGHLIGHTS
Bigoray Package
- Primarily Compton operated production with upside potential
- Inventory of multi-zone development and exploitation opportunities
- Cardium infill development potential
- Over 13,000 net acres of undeveloped land
|
- Production (1)
- March 2008: 1,674 boe/day (61% gas)
- Reserves (2)(3)
- Total Proved: 6.3 MMboe
- Proved + Probable: 8.3 MMboe
- Land
- 49,360 acres (26,892 net)
|
Thornbury Package
- Large inventory of Grosmont, Grand Rapids and McMurray opportunities including downspacing
- 25 Probable Grosmont and McMurray locations in the NSAI report
- Over 130 Possible Grand Rapids and McMurray locations identified by NSAI
- Extensive land position; over 110,000 net acres of undeveloped land
|
- Production (1)
- March 2008: 1050 boe/day (100% gas)
- Reserves (2)(3)
- Total Proved: 3.1 MMboe
- Proved + Probable: 4.6 MMboe
- Land
- 370,240 acres (208,500 net)
|
Peace River Arch Package
- Multi-zone exploration and development opportunities
- 21.73% W.I. in the Progress Halfway Gas Unit and 7.78% W.I. in the Spirit River Triassic Unit
- Large inventory of opportunities
- 35,000 net acres of undeveloped land
|
- Production (1)
- March 2008: 799 boe/day (84% gas)
- Reserves (2)(3)
- Total Proved: 1.7 MMboe
- Proved + Probable: 2.7 MMboe
- Land
- 140,866 acres (59,032 net)
|
Zama Package
- High impact exploration potential
- Large amount of 2-D and 3-D seismic
- High impact Keg River prospects
- Large inventory of Jean Marie development locations in Helmet
- 7,000 net acres of undeveloped land
|
- Production (1)
- March 2008: 139 boe/day (36 % gas)
- Reserves (2)(3)
- Total Proved: 0.5 MMboe
- P+P: 1.2 MMboe
- Land
- 50,407 acres (13,561 net)
|
Notes:
1. Production figures are March 2008 estimated W.I. sales volumes
2. Production and reserve volumes are working interest before royalties
3. Reserve volumes are based on NSAI and Compton internal December 31, 2007 evaluations
RESERVES
Netherland, Sewell & Associates Inc. (NSAI) and Compton have completed reserve evaluations for the offering effective December 31, 2007. The Zama and Peace River Arch reserve evaluations were prepared by Compton and the Bigoray and Thornbury reports were prepared predominantly by NSAI. The Canadian Consultants Average December 31, 2007 price forecast was used in the evaluations.
PROCESS
Summary information on the Compton opportunity, including a map of the Packages, and production and reserves summaries, is available on the ‘Compton Intromap'. The Information Memorandum for the Compton opportunity will be available for review the week of April 21, 2008, and will provide further detail on the process and on the assets, including property descriptions, development opportunities, and summaries from the NSAI and Compton reserve evaluations.
TIMETABLE
The timetable for the process is expected to be as follows:
| Milestone |
Date |
Confidential Information |
Week of April 21, 2008 |
Information Memorandum available |
Week of April 21, 2008 |
Non-binding Proposals Due |
12:00 noon, May 27, 2008 |
The transactions are expected to be structured as asset sale transactions with full tax pool coverage. Although all proposals will be considered, Compton strongly prefers cash consideration. Further information regarding proposals and transaction structure will be available in the Information Memorandum and to parties that have executed the Compton Confidentiality Agreement.
CONFIDENTIAL INFORMATION
Confidential information is available in the on-line Virtual Data Room, the Physical Data Room and through Q&A facilitated directly with interested parties (collectively, the “Confidential Information”). Parties that would like access to the Confidential Information will be required to execute and deliver two copies of the Compton Confidentiality Agreement to Scotia Waterous.
CONTACTS
If you have any questions regarding this opportunity, please contact a Scotia Waterous representative listed below:
Scotia Waterous Inc.
Suite 1800 , Scotia Centre, 700 – 2 nd Street SW , Calgary , Alberta T2P 2W1
Main: (403) 265-8077 Fax: (403) 269-8355 E-mail: info@scotiawaterous.com |
Rick Eremenko
|
(403) 261-2374 |
Paul Walmsley |
(403) 218-6789 |
Jeff Bowron
|
(403) 261-2377 |
Christopher Pike |
(403) 261-2379 |
| Joan Simmins |
(403) 218-6779 |
Boris Markhasin |
(403) 261-4225 |
