Compton Petroleum Corporation announces the results of the sale of certain non-core assets. These property sales are entirely consistent with our efforts over the past year to focus Compton as a relatively pure play unconventional natural gas company.
Strong bids were received for all five of the minor non-core asset packages offered for sale. The Company has accepted offers to purchase on four packages at Cecil, Zama, Thornbury, and the Peace River Arch. The offers total approximately $218 million in the aggregate and relate to approximately 3,700 boe/d of production comprised of approximately 14.3 mmcf/d of natural gas and 1,300 bbls/d of natural gas liquids and crude oil. The Cecil property sale is the largest of these transactions and the majority of the property is subject to rights of first refusal. It is expected that clearing these rights will take until mid-summer and closing will occur shortly thereafter. The remaining property sales are also expected to close by mid-summer. The proceeds from these divestments will be utilized to reduce bank debt. We are currently in the process of finalizing the annual mid-year review of our authorized credit facilities which has factored in the impact of these divestitures. Current indications from the banking syndicate are that the property divestitures will not impact the authorized credit facilities and that we will maintain the current $500 million authorization.
The Company has elected to retain ownership of the fifth property package at Bigoray as this property is complimentary to Compton's core area operations in the highly competitive area of central Alberta at Niton and Edson.
Subsequent to the closing of these property sales, Compton's activities will be focused entirely in central Alberta and the Rock Creek/Gething natural gas plays at Niton/Edson, and in southern Alberta including the Basal Quartz play at Hooker, the Plains Belly River play, and the thrusted Belly River formation in the foothills.
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