Compton Petroleum offering to raise $138.8 million

Compton Petroleum offering to raise $138.8 million on issuance of 120 million shares

• By The Associated Press
• On 11:51 am EDT, Friday September 11, 2009

Canadian natural gas and oil producer Compton Petroleum Corp. said on Friday that its underwriters will by 120 million units in the company at $1.25 Canadian ($1.39) each, raising $150 million Canadian ($138.8 million).

Calgary-based Compton said each unit includes one common share and one common share purchase warrant, entitling the holder to buy another share in the two years following the closing of the sale, at $1.55 Canadian each. Compton said it will issue 120 million shares.

Compton's underwriters are led by Canaccord Capital Corporation and include BMO Capital Markets Inc., FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc. and Salman Partners Inc. They have an option to purchase additional up to 18 million additional units.

The offering is scheduled to occur Sept. 25. It will leave Compton with about 263 million shares outstanding, not counting the option for the underwriters.

If the underwriters exercise their options, a total of 18 million addition

Compton's U.S.-listed shares fell 28 cents, or 20 percent, to $1.12 in morning trading.