Compass Petroleum Ltd.

Compass Petroleum Ltd.

December 03, 2010 16:01 ET

Compass Petroleum Ltd. Announces Settlement With Dissenting Los Altares Shareholders

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2010) -

Compass Petroleum Ltd. (TSX VENTURE:CPO) ("Compass" or the "Company") announced today that it has issued an aggregate of 306,967 common shares in the capital of Compass (the "Compass Shares") to certain former shareholders (the "Dissenting Shareholders") of Los Altares Resources Ltd. ("Los Altares"). The Common Shares were issued in settlement of statutory rights of dissent exercised by the Dissenting Shareholders in connection with an amalgamation among Compass, Los Altares and Swiftsure Energy Inc. ("Swiftsure"). 

On October 9, 2007, Compass completed a business combination with Los Altares, through the amalgamation of a wholly-owned subsidiary of Compass, Swiftsure, with Los Altares (the "Los Altares Amalgamation"). In connection with the Los Altares Amalgamation, a total of 3,349,385 Compass Shares were issued to the former shareholders of Los Altares. As a result of the Los Altares Amalgamation, Compass obtained indirect interests in oil and natural gas properties (and related facilities) in the Garrington and Cold Lake areas of Alberta and in the Kindersley area of Saskatchewan.

Shareholders of Los Altares who owned an aggregate of 1,121,053 shares of Los Altares exercised rights of dissent in respect of the Los Altares Amalgamation. The Company has entered into a settlement agreement with Dissenting Shareholders that held, in the aggregate, approximately 1,074,385 shares of Los Altares. Under the Settlement Agreement, Compass Shares have been issued to the Dissenting Shareholders on the same basis as other Los Altares shareholders who participated in the Los Altares Amalgamation.

Compass is an oil weighted, oil focused junior oil and gas exploration and production corporation based in Calgary, Alberta. The Company's current main focus is on the exploitation and development of its Viking light oil resource lands in the Dodsland area of west central Saskatchewan.

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 release.

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