CENTENNIAL ENERGY PARTNERS, L.L.C.

Compton Petroleum Corporation
NYSE : CMZ
TSX : CMT.CN

October 06, 2009 16:53 ET

Centennial Energy Partners, L.L.C.: Announcement

NEW YORK, NEW YORK--(Marketwire - Oct. 6, 2009) - Centennial Energy Partners, L.P., Hoyt Farm Partners, L.P., Quadrennial Partners, L.P., Centennial Energy Partners V, L.P., Centennial Energy Partners, L.L.C., and Peter K. Seldin (collectively the "Reporting Persons") announce that they in the aggregate acquired 15,000,000 Units of Compton Petroleum Corporation ("Compton") (TSX:CMT) (NYSE:CMZ) pursuant to the underwritten public offering (the "Offering") which closed on October 5, 2009. The purchase represents 10.9% of the total Units issued in the Offering, including the exercise of the underwriters' over-allotment option. Each Unit consists of one common share in the capital of Compton and one full common-share purchase warrant, exercisable at CDN $1.55 for a period extending 24 months from the closing date.

Mr. Seldin also announces his resignation from the Board of Directors of Compton effective immediately. Mr. Seldin joined the Board in February, 2008 in order to participate in a review of strategic alternatives. In a letter to Compton Management and the Board dated today, Mr. Seldin states that the closing of the Unit offering and the recently announced agreement to sell an overriding revenue interest are important steps in the financial restructuring of the Company. Both transactions, led by Compton's new management team, serve to strengthen the balance sheet and establish Compton as an on-going concern.

Centennial Energy Partners, L.L.C. is the General Partner of Centennial Energy Partners L.P., Hoyt Farm Partners, L.P., Quadrennial Partners, L.P and Centennial Energy Partners V, L.P. Mr. Seldin is the Managing Member of Centennial Energy Partners, L.L.C. A condition to the completion of the Offering by the underwriters was the agreement by each director to a 45-day lock-up period following the closing wherein no common shares or warrants to purchase common shares beneficially owned by them will be sold or otherwise disposed of.

The purchase by the Reporting Persons of Units of Compton pursuant to the Offering is for the purpose of investment. The Reporting Persons have been a shareholder of Compton on a continuous basis since 1997. Including the common shares acquired in the Offering, the Reporting Persons own 40,545,796 common shares, or 15.38% of issued and outstanding shares. Assuming the warrants acquired pursuant to the Offering are exercised only by the Reporting Persons, they may be deemed to own 19.94% of Compton. The Reporting Persons may continue to purchase common shares of Compton for investment purposes, depending on the market conditions for shares of Compton and other factors.

Contact Information

  • Centennial Energy Partners, L.L.C.
    212-753-5150