Compton Petroleum Corporation

January 29, 2008 12:50 ET

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

NEW YORK CITY, NEW YORK--(Marketwire - Jan. 29, 2008) - 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 today sent a letter ("the January Letter") to M.F. Belich, Q.C., the Chairman of the Board of Directors, and E.G. Sapieha, C.A., the President and Chief Executive Officer of Compton Petroleum Corporation in response to the press release on January 23, 2008 of Compton's operating plans for 2008 and projections through 2010.

Mr. Seldin, in his capacity as Managing Member of Centennial Energy Partners, L.L.C. states in the letter that Centennial considers Compton's operating plan to be an ill-conceived program. The plan does not and cannot address Compton's fundamental structural problem: the company does not have the cash flow or access to capital on a non-dilutive basis to maximize the value of its asset base. The three-year projection indicates a large funding gap. To close this gap, Compton will need to sell significant assets - first, non-core assets and, then, some of its growth assets - and also issue a large number of new shares. The plan, therefore, asks shareholders to assume significant execution risk, commodity-price risk and stock-market risk for minimal per-share return.

Centennial considers Compton to be an opportunity-rich company. In Centennial's opinion, the best course of action is to transfer these assets to a larger, well-funded company that can develop this potential in a more timely and more valuable manner. Centennial asks the Compton Board of Directors to put the company up for sale. Although Centennial prefers a cooperative relationship with Compton, Centennial is prepared to nominate its own slate of directors and call for a special shareholders' meeting if necessary. The January Letter is publicly available as an attachment to the Early Warning Report filed by Centennial on SEDAR.

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.

The Reporting Persons currently own in the aggregate 25,545,796 common shares of Compton Petroleum Corporation, representing 19.78% of the issued and outstanding common shares.

Contact Information

  • Centennial Energy Partners, L.L.C
    Mr. Peter K. Seldin