Compton Petroleum to consider alternatives, names shareholder representative to its board

By Lisa Kerner

Charlotte, N.C., Feb. 28 - Compton Petroleum Corp. said it will review strategic alternatives with the assistance of Tristone Capital Inc. and UBS Securities Canada Inc.

Alternatives may include potential asset divestments, equity alternatives, strategic alliances, joint venture opportunities, mergers or a corporate transaction, a company news release stated.

The review follows Centennial Energy Partners, LLC's disapproval of Compton's plan to continue investing in the growth potential of its asset base in 2008 as announced on Jan. 23.

As previously reported, Centennial said the plan failed to address what it feels is the company's fundamental structural problem: lack of cash flow and access to capital to maximize the value of its asset base.

Members of Compton's special committee that will conduct the review include chairman of the board Mel F. Belich, J. Stephens Allan, Irvine J. Koop, John W. Preston, Jeffrey T. Smith and John A. Thomson.

Compton also named Centennial managing member Peter Seldin to its board of directors and the special committee.

Centennial is Compton's largest shareholder, owning 25,545,796 shares, or a 19.8% ownership position. The investor has been a Compton shareholder since 1997.

Compton is a Calgary, Alta.-based company engaged in the exploration, development and production of natural gas, natural gas liquids and crude oil in the Western Canada Sedimentary Basin.

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