Compton Petroleum extends cure time to repay borrowing base shortfall

By Susanna Moon

Chicago, July 9 - Compton Petroleum Corp. secured an agreement from lenders under its credit facility to extend the borrowing base cure period. Compton Petroleum said it received the long-term extension to facilitate a takeover bid and private placement.

The company agreed to be acquired by MFC Industrial Ltd. and entered into an equity private placement agreement with MFC for proceeds of about C$8.2 million, according to a company press release.

The extension will be until the earliest of Sept. 30 (which may be extended to as late as Oct. 30), the date on which the offer is completed and any date on which the lenders otherwise terminate the extension agreement.

Compton Petroleum is a Calgary, Alta.-based explorer, developer and producer of natural gas, natural gas liquids and crude oil in western Canada.

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