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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
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.
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.
This will develop into a really nice producing company if management sticks to the plan.
This is a play that I like more and more each day.
Lookin good, nice tight share structure..
From my DD this "should" offer great upside from these levels. The management did what they had to do to move this company ahead.
This also allows Compton to move ahead and develop their Bakken lands.
This company is now poised to move forward.
Company is now stable and recapitalization is now complete.
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?
did you see the company website and financials
This could hit triple zeros
1000% Pure Speculation. Just my opinion
wherever, sedar or edgar
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
it will get an take over bid .. no one will left this company at this price..
check the financials..
Please give me the figures for the book value
plus started to make profit book value 4 dollars..
so funny, the company reduced debt from 852 million to 398 million..
Too much debt for me. 1000% Pure speculation. Just my opinion
CMZPF 2.5 million dollars net profit, the financial out..
The debt is high, no
total debt reduced to 428 million dollars from 832 million dollars last 3 years..
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~
Perhaps I should buy some of these guys... They have some debt, but I see alot of good stuff too.
Nice littler comparison report on CMZPF and other comparable companies.
http://reports.finance.yahoo.com/w0?r=50476292:1
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
Think the management changes have had any effect on CMZPF?
Check out PCIO and CBIS. If they follow what MJNA and CANA did last week we should see 400%
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.
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.
They have some debt but oil is going up so it should be a good buy in the long run
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?
With oil prices the way they are, why am I the only one here? I just bought in. Going to $1.50.
(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
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Compton Petroleum Corporation is a Calgary-based public company actively engaged in the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Western Canada Sedimentary Basin. Over the past three years, we have concentrated on those areas that provide the highest economic return and areas that will help identify additional future development opportunities for the Corporation. Compton's shares are listed on the Toronto Stock Exchange under the symbol CMT.
Our goal is to be recognized as a strong Canadian exploration and production operator that creates value by providing appropriate investment returns through the effective development and optimization of our assets, improving capital efficiencies. Through implementation of a focused strategy that emphasizes realizing the underlying value within the existing asset base, a prudent approach to capital investment decisions and the development of committed and innovative people, we are dedicated to maximizing and creating sustainable value for our shareholders.
Compton began operations in 1993 with $1 million of share capital, a small dedicated technical team, and a large seismic data base. The objective was to build a company from the grassroots through internal full-cycle exploration, complemented by strategic acquisitions. Our vision was to create a company capable of long-term sustained growth with future development and exploration opportunities. As at December 31, 2010, the Corporation had average production of 17,402 boe/d, proved plus probable reserves of 84 million boe, and 1.3 (1.1 net) million acres of land. Net asset value was $1.62 per share as at December 31, 2010 including the value of proved plus probable reserves and undeveloped land, less outstanding debt.
Compton's Oil and Gas Strategy
Our vision and strategy has remained constant since inception. Our focus has always been development of our natural gas resource plays through the drill bit. Since 1996 when we first went public, Compton has advanced from a high risk pure exploration company to a strong intermediate exploration and production corporation with outstanding assets. Today, Compton has 271 million boe of long life reserves, valued in excess of $3.4 billion dollars (8% DCF).
Significant value remains to be added from a low risk, large scale drilling program across Compton's undeveloped lands. Our strategy of developing Compton through the drill bit with a low risk, repeatable drilling program promises significant potential upside for our shareholders.
Unlocking the value inherent in our resource base is our first priority. Components of our operating strategy include:
We are focused on three core areas that provide a balanced portfolio of exploration, development, and exploitation prospects. These areas are the geographic focus of the Company's seismic database rights, and are areas in which Management and staff have significant technical expertise and operational experience. Compton intends to generate exploration opportunities and to increase the Company's undeveloped land base within the WCSB.
As of December 31, 2007, 84% of proved reserves were natural gas. We have gained considerable technical expertise and achieved significant success in exploring for unconventional natural gas accumulations in the WCSB. We plan to continue to focus on finding and developing these types of natural gas opportunities because of their generally lower decline curves and higher economic return over the life of the reserves compared to conventional natural gas opportunities. The large scale nature of our resource plays also offers multiple low-risk drilling locations resulting in lower costs and decreased exploration risk.
Compton engages in the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Western Canada Sedimentary Basin. Our operations are located in the deep basin portion of the Basin, which extends from Northwest Alberta and British Columbia to the United States border. In this large geographical region, we pursue four deep basin natural gas plays: the Rock Creek sands at http://www.comptonpetroleum.com/operations/central.html" rel="nofollow">http://www.comptonpetroleum.com/operations/central.html"> title="blocked::Niton" rel="nofollow" target="_blank">http://www.comptonpetroleum.com/operations/central.html">Niton in central Alberta, the Basal Quartz sands at http://www.comptonpetroleum.com/operations/highriver.html" rel="nofollow">http://www.comptonpetroleum.com/operations/highriver.html"> title="blocked::High" rel="nofollow" target="_blank">" rel="nofollow" target="_blank">http://www.comptonpetroleum.com/operations/highriver.html">High River in southern Alberta, the shallower http://www.comptonpetroleum.com/operations/plains.html" rel="nofollow">http://www.comptonpetroleum.com/operations/plains.html"> title="blocked::Southern" rel="nofollow" target="_blank">" rel="nofollow" target="_blank">http://www.comptonpetroleum.com/operations/plains.html">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. In total, we control over 1.0 million gross (0.9 million net) acres of land underlying these areas. Natural gas represents approximately 84% of reserves and production.
In 2010, the Alberta Bakken Fairway, which runs through Alberta and Montana, attracted more industry attention. Compton holds 79,000 net acres of land on the Blood Indian Reserve in Montana through the previous acquisition of WIN Energy. The Corporation's acreage has a long tenure (expires in 2017) and has one well previously drilled on it. Further exploration and evaluation of this area would be necessary to determine the potential of this property. In 2011, we intend to initiate a preliminary evaluation of the area in order to determine potential next steps.
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