Compton tenders for 9.9% notes

New York, Oct. 31 - Compton Petroleum Corp. said it and its Compton Petroleum Holdings Corp. subsidiary have begun a cash tender offer and consent solicitation for Compton's 9.9% series A senior notes due 2009.

The Calgary, Alta., oil and gas exploration and production company is also soliciting consents to amend the note indenture to eliminate substantially all the restrictive covenants and certain other provisions.

Compton is offering a price per $1,000 principal amount based on the $1,049.50 redemption price on the first call date of May 15, 2006 plus accrued interest up to and including the call date, discounted using a yield of 50 basis points over the 4 5/8% U.S. Treasury note due May 15, 2006.

The total includes a consent payment of $30 per $1,000 that will only be paid to holders who tender with consents by 5 p.m. ET on Nov. 14. The tender ends at midnight ET on Nov. 29.

Holders may not tender without delivering consents or deliver consents without tendering.

Compton will also pay accrued interest up to but excluding the payment date.

The tender is subject to conditions including at least a majority of the notes being tendered with consents and the receipt of enough proceeds from a private placement of debt securities to fund the tender.

Credit Suisse First Boston LLC is dealer manager and solicitation agent (800 820-1653 or 212 538-0652). Morrow & Co., Inc. is information agent (800 654-2468 or 212 754-8000).

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