Compass Petroleum Ltd.

Compass Petroleum Ltd.

November 16, 2010 18:33 ET

Compass Petroleum Ltd. Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2010) - Compass Petroleum Ltd. (TSX VENTURE:CPO) ("Compass" or the "Corporation") announced today that it has filed a notice of intention with the TSX Venture Exchange (the "Exchange") relating to the repurchase by the Corporation of certain of its issued and outstanding common shares (the "Common Shares") pursuant to a normal course issuer bid to be undertaken in accordance with the rules and policies of the Exchange. Currently, there are 32,023,519 Common Shares issued and outstanding. In connection with the normal course issuer bid, the Corporation has received Exchange approval to purchase up to 1,601,175 Common Shares (or 5% of the total number of Common Shares currently outstanding) from time to time commencing on November 17, 2010 and continuing until November 16, 2011. 

Compass has retained Raymond James Ltd. as its broker to conduct the normal course issuer bid on its behalf. In accordance with the requirements of Exchange policy and applicable corporate law, purchases will be made at prevailing market prices and all Common Shares purchased in accordance with the normal course issuer bid will be cancelled. The Corporation has not purchased any Common Shares during the preceding 12 months. 

In the opinion of the board of directors of the Corporation, the Common Shares have been trading in a price range that does not adequately reflect the value of the Common Shares in relation to Compass' current financial condition and future business prospects. As a result, Compass believes that the repurchase of the Common Shares through the normal course issuer bid can enhance shareholder value and represents an appropriate use of Compass' available funds. These purchases are expected to benefit shareholders who continue to hold the Common Shares, in that their equity interest in Compass' assets is increased. The normal course issuer bid also affords an increased degree of liquidity to those shareholders of Compass who wish to dispose of their Common Shares.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any Common Shares, nor shall there be any sale of the Common Shares in any province or other jurisdiction in which such offer, solicitation or sale would be unlawful. 

Compass Petroleum Ltd. is a junior oil and natural gas corporation engaged in the exploration for, and development and production of, oil and natural gas in Alberta and Saskatchewan. The outstanding common shares of Compass Petroleum Ltd. are listed and posted for trading on the TSX Venture exchange, under the trading symbol "CPO".

Reader Advisories Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Compass Petroleum Ltd.
    Yook L. Mah
    President and CEO
    (403) 261-1911
    Compass Petroleum Ltd.
    Graham Barnes
    (403) 261-1911