Compass Petroleum Ltd. Announces Review of Strategic Alternatives
13 October 2011 - 9:00PM
Marketwired
Compass Petroleum Ltd. ("Compass" or the "Corporation") (TSX
VENTURE:CPO) announced today that its Board of Directors has
determined to consider a range of strategic alternatives, with a
view to enhancing shareholder value.
After a thorough review of the Corporation's current reserves,
production and operations, the Board of Directors has concluded
that the common shares of Compass trade at a discount to the net
asset value of its underlying assets. The Board and senior
management believe that the exploitation and realization of the
upside potential of these assets would be suited to an entity with
better access to capital and liquidity and in that regard, it is
appropriate for the Corporation to consider all available
opportunities to enhance shareholder value. In considering
strategic alternatives, Compass has established a special committee
of independent directors, comprised of Bruce Fiell (Chair), Gordon
Case and Christopher Whyte, with a mandate to oversee the strategic
review process. Compass has also retained FirstEnergy Capital Corp.
("FirstEnergy") to provide financial advisory and investment
banking services in connection with the process. The Corporation
and FirstEnergy have established a confidential data room
containing materials for review by potential counterparties who
have entered into confidentiality and standstill agreements.
Yook Mah, the President and Chief Executive Officer of Compass,
commented, "Compass has developed significant assets on the Viking
light oil resource play in the Dodsland area of west central
Saskatchewan, including a large inventory of horizontal drilling
locations in the Lucky Hills area and a large undeveloped land base
in the greater Dodsland area. The Board of Directors, with input
from senior management, has decided to consider the various
strategic alternatives with a view to enhancing shareholder
value."
Strategic alternatives may include a sale of all or a material
portion of the assets of Compass, either in one transaction or in a
series of transactions, the outright sale of the Corporation or a
merger or other transaction involving Compass and a third party.
The strategic review process has not been initiated as a result of
any particular offer and there are no assurances that a transaction
will be undertaken.
Except as required by law, Compass does not intend to disclose
developments with respect to the strategic review process unless
and until the Board of Directors has approved a definitive
transaction or strategic option. The Corporation cautions that
there are no guarantees that the strategic alternative review
process will result in a transaction or, if a transaction is
undertaken, the terms or timing of such transaction. The
Corporation has not set a definitive schedule to complete its
evaluation.
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 release.
Contacts: Compass Petroleum Ltd. Yook L. Mah President and Chief
Executive Officer (403) 261-1911 Compass Petroleum Ltd. Graham
Barnes Chief Financial Officer (403)
261-1911info@compasspetroleum.com
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