Gross proceeds from both sales transactions are expected to be $150m, with the remaining sales transaction expected to close in mid-July.
In addition, the company has received the final payment of $9.5m for the remaining 0.5% tranche of its sale of its 5% overriding royalty (ORR). The ORR represents 5% of the gross production revenue on the company’s existing land base less certain transportation costs and marketing fees.
The proceeds from the transactions will be used to reduce outstanding indebtedness and provide additional capital for Compton Petroleum’s 2010 development program, the company said.
Compton Petroleum is engaged in the exploration, development and production of natural gas, natural gas liquids and crude oil in western Canada.
