Compton Petroleum sees C$30 million reduction in borrowing base

By Sara Rosenberg

New York, April 9 - Compton Petroleum Corp.'s credit facility borrowing base was reduced to C$110 million from C$140 million as a result of a lower natural gas price forecast, according to a news release.

The C$140 million facility is fully drawn, and any excess amounts outstanding over the new borrowing base will be due on May 7.

The company has hired RBC Capital Markets as financial advisor and agent for the recapitalization of its capital structure through the sale of assets and/or raising equity financing.

Furthermore, the company is considering opportunities to leverage its substantial tax pool base.

Compton Petroleum is a Calgary, Alta.-based explorer, developer and producer of natural gas, natural gas liquids and crude oil in western Canada.

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