Compton Petroleum Corporation released the terms of its recently announced $150 million equity offering. The company will issue 120,000 units at $1.25 each. Each unit comprises one share of stock and one warrant.
Each warrant conveys the right to purchase one share of Compton Petroleum common stock at a price of $1.55 per share. The warrants expire 24 months after issuance.
Compton Petroleum said the funds would be used to pay down debt. Tim Granger, the CEO of Compton Petroleum stated, “This transaction is an important first step in our restructuring process, contributing to our future ability to unlock the potential of Compton’s resource rich asset base,” said, President Chief Executive Officer. “The proceeds of the offering will allow us to reduce our debt level and will result in a stronger balance sheet.”
Compton Petroleum is an active exploration and production company with a focus on the Western Canada Sedimentary Basin in Alberta, Canada. The company has total proved reserves of 124.3 million barrels oil equivalent (BOE) as of 12/31/2008.