FINANCING / Compton Petroleum Corporation Private Placement
CALGARY, Dec. 18 /CNW/ - COMPTON PETROLEUM CORPORATION (''Compton'')
announces that it has entered into an agreement with a syndicate comprised of
Peters & Co. Limited, FirstEnergy Capital Corp. and Newcrest Capital Inc. to
raise gross proceeds of up to $15,000,000 by way of a private placement of up
to 7,894,737 flow-through common shares (''Flow-Through Shares'') at $1.90 per
share on a ''best efforts'' agency basis. Closing is subject to regulatory
approval and is expected to occur on or about December 30, 1998. The net
proceeds from the offering of Flow-Through Shares will be used to fund
on-going oil and gas exploration and development activities of Compton.
During the course of the offering, Compton will suspend its normal course
issuer bid commenced on September 8, 1998 to purchase up to approximately
7,000,000 common shares through the facilities of The Toronto Stock Exchange
(''TSE'').
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the Flow-Through Shares in any jurisdiction.
Such securities have not been registered under the United States Securities
Act of 1933, as amended, and may not be offered or sold in the United States
or to a U.S. person, absent registration, or an applicable exemption
therefrom.
Compton Petroleum Corporation is a Calgary, Alberta based exploration and
production company. Following its acquisition of J.M. Huber Canada Limited,
which is scheduled to close on December 21, 1998, Compton will have reserves
in excess of 33 million boe, approximately 80% of which are natural gas and
associated gas liquids. The common shares of Compton are listed on the TSE and
trade under the symbol ''CMT''.
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