Compton Aims for Value

Article Excerpt

COMPTON PETROLEUM $11.56 (Toronto symbol CMT; SI Rating: Speculative) (403-237 -9400; www.comptonpetroleum.com; Shares outstanding: 129.1 million; Market cap: $1.5 billion) will now conduct a formal review of its business plan and strategic alternatives to enhance shareholder value. This could include potential asset sales, strategic alliances, joint ventures, mergers or the sale of the company. Compton initiated the formal review in response to repeated requests from its largest shareholder, New York-based private equity firm Centennial Energy Partners. Centennial holds a 19.8% interest in Compton. A representative from Centennial has joined Compton’s board and will be a member of the special committee conducting the review. Compton will need sustained high gas prices before it reports significantly higher cash flow. Centennial’s close involvement in Compton helps highlight the value of Compton’s assets. Compton Petroleum is still a hold. hold…