Compton Petroleum Corp (fka CMZPF)

[Renee]

CMZPF: Acquisition/Merger; The compulsory acquisition by MFC Industrial Ltd. and MFC Acquisition Inc. of all of the remaining outstanding common shares of the Company at a price of $1.25 cash per common share. See TSX Bulletin 2012-0986 for further information.**

http://www.otcbb.com/asp/dailylist_detail.asp?d=09/13/2012&mkt_ctg=NON-OTCBB

[riverrock]

What Compton done

Compton made a number of suspicious moves from 2009 through 2011. First they removed approximately 100 million barrels of oil equivalent (BOE) of Proven and Probable Reserves. Normally 1.0 BOE is considered to have a value between $10 to $14. While it's true that the natural gas price was low after Compton removed the bulk of reserves at year end 2010, natural gas had the habit of spiking upward many times in the past. http://www.tradingeconomics.com/commodity/natural-gas . In effect, Compton literally removed well over $1.0 billion dollars from their net worth. In addition Compton has roughly ~$1.0 billion in Tax Pools, which can provide for future tax savings of over ~$150 million.
On June 7, 2010 Compton announced that they sold assets worth $150.2 million and then delisted their common shares from the NYSE on June 25, 2010. A short time later, on July 19, 2010, Compton did a recapitalization, where they created the $45 million 10% Mandatory Notes that were scheduled to expire Sept 2011, they also reset the interest rate and date for the US$193.5 million, 7.5% Notes of Sept 2011 and replaced them with 10% Senior Notes expiring Sept 2017. If the Mandatory10% Notes of Sept 2011 were not paid in cash, they were redeemable in Compton shares at the prevailing market price. Compton could have used the money from the $150.2 million asset sale to pay for the Mandatory 10% Notes expiring in Sept 2011, by simply banking the required $45 million plus interest from the asset sale to pay the Mandatory Notes off , but didn't. As a result Compton's share price dropped to 11 cents a share, with insider help.

On June 6, 2011, Compton did a another recapitalization, where both the 10% Mandatory Notes due to expire during Sept 2011 were revalued to $48.8 million- and the 10% Notes of 2017 valued at $193.5 million, or a total of $242.3 million were exchanged for ~18.071 million new shares that held right(s) to purchase almost all, of an additional ~6.394 million new shares that Compton planned to issue. Those shares that were not purchased by the former Note Holders, who held most all of the rights, would. Or were to be back stoppers, likely the Insiders.

In their recent quarterly report of September 30, 2011 Compton indicated earnings of ~$28.36 million from production on ~26.36 million shares, which comes to $1.07 per share for q3, 2011. If such earnings were continued through 2012, Compton could earn ~$4.31 for 2012.

Background of the Degradation on the Original Shareholders

The Original Shareholders as a group received 1.318 million new Compton shares -after the 1 for 200 share degradation perpetrated on them- and 2 Cashless Warrants for each new share, plus rights to purchase new shares, each right allowed to purchase 0.48515 new shares, or requiring roughly ~2 rights plus ~$7 to purchase a new share. The Original Shareholder had a chance of receiving the additional new shares for each cashless warrant held, if a certain price, in the range of -roughly $11- was triggered over a 3 year period, With quarterly earnings of $1.07 continuing through 2011, the cashless warrants will surely be triggered. As a result, the Original Shareholders as a group will hold 3.954 million new shares with estimated earnings of $4.31 per share. Even with today's low NG price, such shares could easily have PE ratios of 15 to 20 P/E and sell from ~$64 to ~$86 per share.
The Original Shareholders as a group with 3.954 million new shares would have market value from ~$253 to ~$340 million.
The above does not consider shares bought later by exercising the miniscule number of rights received by original shareholders, at the cost of roughly $7 per share.

By comparison, the Former Note holders -some of whom, would be insiders- received 18.071 million shares for their Notes, with a market value from ~$1.16 billion to ~$1.55 billion based on PE ratios of 15 to 20, roughly ~4.8 to ~6.4 times the value of the $242.3 Million value of the Notes they tendered.
Is this fair? Considering what was done to the original shareholders?
The approximate 6.394 million shares that were possible for Note Holders to purchase would cost about $7 per share and were backstopped by the insiders.

What Compton should have done

If the Mandatory Notes of Sept 2011 were paid off either when they sold the producing assets for $150.2 million on June 7, 2010, or the money plus interest was banked to pay off the Mandatory Notes for Sept 2011. If in addition they did a 1 : 10 reverse split on their original 263.7 million shares, then Compton would also have had ~26.4 million new shares. In this case Compton would still have annual interest on the $193.5 million in debt on the 10% Notes expiring in 2017, plus ~$144 million at ~7% on the Credit facility from their banks -those who handled the Recaps. Since interest paid on the credit facility is in the $1.07 earned on 9/30/2011, the annual interest would be on the 2017, 10$ notes, or ~$19.5 million, or ~$4.88 million quarterly. With the quarterly earnings of Sept 2011 continuing through 2012, then the Original Shareholders as a Group could earn [(28.31 – 4.88)/26.4]4 or $3.55 per share on the 26.4 million new shares. With the NG price as is, the shares c6uld easily have a 12 to 17 P/E Ratio and sell from $43 to $61 per share. In this case, the Original Shareholders as a Group would have had a value from ~$1.14 billion to ~$1.61 billion.

[riverrock]

Especially for the former Note Holders and Insiders, but not the original shareholder, who they dunked. Good luck on your play, but watch them carefully.

[SCREAMING EAGLE]

This will develop into a really nice producing company if management sticks to the plan.

[WildcatDriller]

This is a play that I like more and more each day.

[SCREAMING EAGLE]

Lookin good, nice tight share structure..

[SCREAMING EAGLE]

From my DD this "should" offer great upside from these levels. The management did what they had to do to move this company ahead.

[WildcatDriller]

She is set to move...

[WildcatDriller]

This also allows Compton to move ahead and develop their Bakken lands.

[WildcatDriller]

This company is now poised to move forward.

[WildcatDriller]

Company is now stable and recapitalization is now complete.

[Mav17]

I take that back...Rock bottom could be .000

[Mav17]

Seems to me like this one is about as rock bottom as it could get.


Why is this stock so low right now? I looked at the all the info, seems like it should be higher.

what gives?

[TRUSTUNITS]

Yes

[~ Blue ~]

did you see the company website and financials

[TRUSTUNITS]

This could hit triple zeros

1000% Pure Speculation. Just my opinion

[~ Blue ~]

wherever, sedar or edgar

[TRUSTUNITS]

Do I go to Sedar or the U.S. site. I look at the F/S and don't see the book value. Please tell me where to go

[~ Blue ~]

it will get an take over bid .. no one will left this company at this price..

[~ Blue ~]

check the financials..

[TRUSTUNITS]

Please give me the figures for the book value

[~ Blue ~]

plus started to make profit book value 4 dollars..

[~ Blue ~]

so funny, the company reduced debt from 852 million to 398 million..

[TRUSTUNITS]

Too much debt for me. 1000% Pure speculation. Just my opinion

[~ Blue ~]

CMZPF 2.5 million dollars net profit, the financial out..

[TRUSTUNITS]

She is moving. I don't own any.

[TRUSTUNITS]

I hate debt.

[TRUSTUNITS]

The debt is high, no

[~ Blue ~]

total debt reduced to 428 million dollars from 832 million dollars last 3 years..

[~ Blue ~]

CMZPF updated DD with all links.. must read..

CMZPF, Canadian oil and gas company.

Canadian shares ticker TSE:CMT


Compton Petroleum Corporation is a public company actively engaged in the exploration, development and production of natural gas, natural gas liquids, and crude oil in western Canada. Our strategy is focused on creating value for shareholders by providing appropriate investment returns through the effective development and optimization of assets. The majority of the our operations are located in the Deep Basin fairway of the Western Canada Sedimentary Basin. In this large geographical region, we pursue four deep basin natural gas plays: the Rock Creek sands at Niton in central Alberta, the Basal Quartz sands at High River in southern Alberta, the shallower Southern Plains sand play in southern Alberta and an exploratory play at Callum/Cowley in the Foothills area of southern Alberta. Being in the Deep Basin, all areas have multi-zone potential, providing future development and exploration opportunity. We are also focusing on developing our emerging oil potential in the Southern Plains area and in the Montana lands. Natural gas represents approximately 84% of production.

CMZPF RECENT PRESENTATION


insert-text-here


http://www.comptonpetroleum.com/index.php


1) CMZPF last year revenue 186 million dollars


http://www.google.ca/finance?q=PINK:CMZPF&fstype=ii


2) Net profit 4 million dollars.


http://www.google.ca/finance?q=PINK:CMZPF&fstype=ii


3) Shares outstanding 263.5 million


http://www.google.ca/finance?q=CMZPF


4) Total debt reduced from 620 million to 428 million.


http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE2NTk0fENoaWxkSUQ9NDI4OTM5fFR5cGU9MQ==&t=1


Real company, real deal..

this stock was 20 dollars in 2006..

hit the floor

time to explode

Blue~

[WildcatDriller]

Perhaps I should buy some of these guys... They have some debt, but I see alot of good stuff too.

[~ Blue ~]

CMZPF, book value 4 dollars price 18 cents

[OilStockReport]

Nice littler comparison report on CMZPF and other comparable companies.

http://reports.finance.yahoo.com/w0?r=50476292:1

[unevilfavouredness]

yes, this will rise to $4.00 like SSN did. Also, check out HMGP. I have a hunch something is about to go up with the whole sector relative to gold silver prices hitting record highs

[OilStockReport]

Think the management changes have had any effect on CMZPF?

COMPTON ANNOUNCES MANAGEMENT CHANGES
CALGARY, Feb. 24, 2011 (Canada NewsWire via COMTEX) --
Compton Petroleum Corporation (TSX: CMT) announces the departure of Mr. Marc Junghans, Vice President, Exploration, and Mr. Leigh Cassidy, Vice President, Finance and Chief Financial Officer ('CFO'), effective February 15 and 28, 2011, respectively. Compton wishes to thank both gentlemen for their contribution to the organization and wish them the best in their future endeavours.
Ms. Theresa Kosek, CA, has been appointed to the position of Vice President, Finance and CFO upon Mr. Cassidy's departure. Ms. Kosek has over 16 years of experience in the petroleum industry in roles of increasing responsibility for finance and corporate matters. She has been with Compton for over 11 years and most recently served as Controller for the Corporation. In this role she has overseen Compton's corporate finance and accounting functions for the organization's reporting activities. Ms. Kosek was instrumental in several initiatives at Compton, including the issue of the 2002 senior term notes and the associated United States regulatory reporting requirements with the Securities and Exchange Commission for the notes and the New York Stock Exchange listing. She has led the review, interpretation and adoption of changes in U.S. and Canadian regulatory reporting and leads the current conversion to International Financial Reporting Standards. Her responsibilities have included financial valuations for acquisitions, corporate planning and budgeting, amalgamations and internal audit functions. Prior to this, Ms. Kosek was employed by Grant Thornton LLP, providing financial and valuation advice to a number of small to mid-sized petroleum clients. She also serves on the Board and is Treasurer of Lunchbox Theatre. Ms. Kosek holds a Bachelor of Commerce degree from the University of Calgary, and is a Chartered Accountant.
In addition, Ms. Shannon Ouellette has been appointed to the role of Chief Operating Officer effective January 1, 2011. Previously, Ms. Ouellette served as the Vice President, Operations and Development at Compton. She holds a Bachelor of Science in Chemical Engineering as well as a Masters of Engineering, both from the University of Calgary. Ms. Ouellette is a professional engineer and is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta.
"I would like to sincerely thank both Marc and Leigh for their contribution to Compton," said Tim Granger, President and Chief Executive Officer. "Marc's role in the development of the Company was significant over the past 13 years. He was instrumental in the acquisition of the Niton property and discovered Compton's High River Basal Quartz pool. Leigh's counsel and leadership in the Corporation's financial restructuring over the past two years has been invaluable, helping to reduce debt by over half. On behalf of the Board and the Corporation, I wish them well in their future endeavors."
Mr. Granger continued, "I would like to welcome Theresa to the CFO role. Theresa enters into a new position at Compton, where she can utilize her financial knowledge and experience in the future development of the Corporation. I also wish to acknowledge Shannon's promotion in recognition of her performance and the strong results she has achieved in improving the organization's operations."
About Compton Petroleum Corporation
Compton Petroleum Corporation is a public company actively engaged in the exploration, development and production of natural gas, natural gas liquids, and crude oil in western Canada. Our strategy is focused on creating value for shareholders by providing appropriate investment returns through the effective development and optimization of assets. The majority of the Corporation's operations are located in the Deep Basin fairway of the Western Canada Sedimentary Basin. In this large geographical region, we pursue four deep basin natural gas plays: the Rock Creek sands at Niton in central Alberta, the Basal Quartz sands at High River in southern Alberta, the shallower Southern Plains sand play in southern Alberta and an exploratory play at Callum/Cowley in the Foothills area of southern Alberta. Being in the Deep Basin, all areas have multi-zone potential, providing future development and exploration opportunity. We are also focusing on developing our emerging oil potential in the Southern Plains area and in the Montana lands. Natural gas represents approximately 84% of production. Compton's shares are listed on the Toronto Stock Exchange under the symbol CMT.
SOURCE: Compton Petroleum Corporation

[unevilfavouredness]

Check out PCIO and CBIS. If they follow what MJNA and CANA did last week we should see 400%

[MicroKing]

Been watching CMZPF since they were listed on the NYSE (CMZ). Started buying today. I use LEI as a comparison for fundamentals and technicals. If you look at the website they just did an analysis of Compton's value. Low end was .99 and high end was 1.62 a share based on current commodity prices.

[unevilfavouredness]

I hope so.

[unevilfavouredness]

We will see this rise to $2.00 or higher in the next 6 months. This is going to be just like SSN Samson Oil & Gas which was at $0.25 a few months ago.

This stock was at $25.00 a share a few years ago.

[joinf]

They have some debt but oil is going up so it should be a good buy in the long run

[unevilfavouredness]

Why is this under $0.50? Just looking at the balance sheet, assets, and other indicators this stock should be trading at $1.50. It was at $12.00 a few years ago. What's up? With the price of oil going to $200.00 and a loaf of bread and gallon of gas costing $10.00 in a year, what is holding this down?

[unevilfavouredness]

With oil prices the way they are, why am I the only one here? I just bought in. Going to $1.50.

[CHA$E]

(Posting .29's) Ms. Susan Soprovich, Director of Investor Relations for Compton Petroleum Corporation should...

be able to answer many Q's here?


http://seekingalpha.com/article/204987-compton-petroleum-corporation-q1-2010-earnings-call-transcript?source=marketwatch