CMZ - Compton Petroleum Corp. (NYSE Stock)

[Volatile22]

Ive been busy as hell today, but wanted to give a heads up on CMZ. This one was actually picked by Mustanggt849. He gave me a heads up on it the 15th actually when it was at 1.15. I looked into it today more closely and liked what I saw. Closing price today was 1.31. I picked some up at 1.33. Afterhours it shot up to 1.39. Looking like it could follow the recent recovery of natural gas and potentially reach its recent highs in the 1.60s.

Ill be back with a better description tomorrow.

Updating with some basic info.....

Compton Petroleum Corporation (Compton) is engaged in the exploration for and, development and production of natural gas, natural gas liquids, and crude oil in western Canada. The Company's operations are located in the deep basin fairway of the western Canada sedimentary basin in the province of Alberta. Compton is active in three deep basin natural gas development plays: the Basal Quartz sands at Hooker in southern Alberta, the Gething/Rock Creek sands at Niton and Caroline in central Alberta, and the shallower Plains Belly River sand play in southern Alberta. Its subsidiaries include Compton Petroleum Finance Corporation and Hornet Energy Ltd.

Shareholder Equity
Shares Outstanding 125.6 M
Institutional Ownership 31.24%
Number of Floating Shares 96.7 M
Short Interest as % of Float 0.03%

The most recent news on the offering they had. This offering was the cause of the recent sell off. Most of these companies that have offerings recovery nicely and CMZ is doing just that.

Compton Petroleum announces terms of $150 million bought deal equity offeringFont size: A | A | A10:04 AM ET 9/11/09 | PR Newswire
Compton Petroleum Corporation (TSX - CMT, NYSE - CMZ) is pleased to announce the terms of its previously announced public offering (the "Offering") of units of Compton ("Units"). Compton has entered into an agreement with a syndicate of underwriters, led by Canaccord Capital Corporation and including BMO Capital Markets Inc., FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc. and Salman Partners Inc., who have agreed to purchase l20,000,000 Units on a bought deal basis at a price of $1.25 per Unit. Each Unit consists of one common share in the capital of Compton (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire an additional Common Share (a "Warrant Share") during the 24 month period following closing of the Offering at an exercise price of $1.55 per Warrant Share. Under the Offering, Compton will issue an aggregate of 120,000,000 Units at a price of $1.25 per Unit for aggregate gross proceeds to Compton of $150,000,000.

Compton has agreed to grant the Underwriters an over-allotment option to purchase additional Units equal to up to 15% of the Units sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering, which is scheduled to occur on September 25, 2009. If the over-allotment option is exercised in full, a total of 18,000,000 additional Units will be sold under the Offering. Upon closing of the Offering, and not including the Common Shares issuable pursuant to the over-allotment option or the Warrant Shares issuable upon exercise of the Warrants, Compton will have approximately 263 million Common Shares issued and outstanding.

The Offering will be sold publicly in each of the provinces of Canada, except Quebec, and in the United States pursuant to the multi-jurisdictional disclosure system implemented by securities regulatory authorities in the United States and Canada, and in such other jurisdictions as may be agreed to by Compton and the Underwriters. A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Offering is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange.

"This transaction is an important first step in our restructuring process, contributing to our future ability to unlock the potential of Compton's resource rich asset base," said Tim Granger, President Chief Executive Officer. "The proceeds of the offering will allow us to reduce our debt level and will result in a stronger balance sheet. This will enable us to take advantage of opportunities that may emerge from the current industry environment, focusing on opportunities for future growth and value for our shareholders."

Compton is taking a multi-faceted, staged approach to recapitalization, which is intended to support the needs of all stakeholders. The Corporation's recapitalization approach is considering the potential utilization of a number of alternatives to reduce Compton's debt level, including the issuance of new capital and/or equity, the conversion of debt to equity, the sale of gross overriding royalty interests on properties, the sale of assets, and/or mergers or acquisitions. Progress continues on several alternatives.

The Offering is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange. A copy of the preliminary prospectus may be obtained from Amy Patel at Canaccord Capital Corporation, 161 Bay Street, Suite 3000, Toronto, Ontario, M5J 2S1, 1-800-663-1899. A copy may also be obtained by visiting SEDAR at http://www.sedar.com or the SEC's website at http://www.sec.gov.

[Spartan]

looks good! these dollar o&g's have been working out for me lately (mpet, bqi)

CMZ is the next buy. Going to see what the overall market looks like in the morning, and I might jump on in! The green volume bars are awful pretty.

Cheers.

[Volatile22]

See first post for some updates on background info.

Volume has been picking up the last few days. Current PPS is 1.37.

[Volatile22]

CMZ at 1.46 now!

Pissed I cant access chat! I wanted to get you guys in on this one.

[Spartan]

tried to get filled at 1.36 this morning. wasn't happening. I'm in at 1.42 with a sell price of 1.55. Seeing some nice volume! Also keeping my eye on XOM...

Good luck!

[Volatile22]

Originally Posted by Spartan

tried to get filled at 1.36 this morning. wasn't happening. I'm in at 1.42 with a sell price of 1.55. Seeing some nice volume! Also keeping my eye on XOM...

Good luck!

That is a nice buy and sell target. Glad to see you are in for the ride. Good luck to you as well!

[Volatile22]

Some pullback, yikes. Might add here. Want to see it slow some first

[Volatile22]

Got my L2 to finally work(somewhat) and it looks like someone showed up with 200k shares to sell.....hopefully the price holds while these shares are dumped. Once that is over it should be fairly clear to 1.60

[Volatile22]

Originally Posted by Volatile22

Got my L2 to finally work(somewhat) and it looks like someone showed up with 200k shares to sell.....hopefully the price holds while these shares are dumped. Once that is over it should be fairly clear to 1.60

Please use caution. The seller still has over 100k shares.

[BadThad]

Dragged down:

Canadian shares dragged down by miners
1:33p ET September 17, 2009 (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Canadian shares slipped Thursday as the mining and energy sectors slid on falling gold and natural gas prices.

The S&P/TSX Composite Index declined 84 points, or 0.7%, to 11,471 points. Early Thursday, the index rose to 11,612, a record-high for 2009. The index had been pushing higher throughout the week, gaining about 2% since Friday's close.

The mining sector, which had been booming earlier this week, slipped 3.5% as gold futures fell back early Thursday after hitting an 18-month high above $1,025 an ounce in Asian trade.

Canadian-listed shares of Yamana Gold Inc. slid 2.7%, IAMGOLD Corp. fell 3.9% and New Gold Inc. slipped 3.5%.

December gold, the most actively traded futures contract, was recently down $3.90, or 0.4%, at $1,016.30 an ounce. It earlier climbed as high as $1,025.80 an ounce in electronic trade. See full story on metals stocks.

Lundin Mining Corp. shares dropped 7.4% after a Cormark Securities analyst downgraded the base metals miner to market perform from buy.

Zinc miner Farallon Mining Inc. Canadian-listed shares declined 5.8%

Blackmont analyst George Topping suggested investors take a closer look at smaller base and precious metals miner HudBay Minerals Inc. in a note. Hudbay shares fell 2.5% after rising about 0.5% in earlier trading.

"With the run-up in gold and silver prices, it is worth noting the hidden value of Hudbay Minerals Inc. precious metals production," Topping said, noting that the miner had no debt and a successful flagship mine in Flin Flon, Canada.

Energy sector falls

The energy sector's weekly rise also dimmed as the sector fell 1% after the U.S. Energy Department reported a rise of 66 billion cubic feet of natural gas storage in the week ended Sept. 11. But rising oil prices lifted some stocks such as Connacher Oil & Gas Ltd. and Compton Petroleum Corp.

Crude oil for October delivery was up 30 cents, or 0.4%, at $72.81 a barrel on the New York Mercantile Exchange. See full story on futures movers.

Canadian-listed shares of oil producers Connacher Oil jumped 2.1% and Compton Petroleum rose 0.7%.

But as oil prices rose, natural gas prices fell. The October contract for natural gas recently declined 3% to $3.65 per British thermal units.

Shares of Claymore Natural Gas Commodity , an exchange traded fund, fell 3.6%.

The financial sector slightly rose .05% as Canadian-listed shares of Manulife Financial Corp. and a top Canadian bank advanced.

Shares of Manulife Financial added 1.8% and Bank of Montreal rose 1%.

Donald Guloien, Manulife's chief executive, is scheduled to speak at Scotia Capital Financials Summit Conference in Toronto to discuss corporate strategies and of financial topics with officials of other top insurers such as Sun Life Financial Inc. . Sun Life shares added 0.5%.

In other market news, Bombardier Inc. , a leading airplane manufacturer, was downgraded to sell from neutral by a Versant Partners analyst.

Bombardier's Canadian-listed shares slid 0.8%. Also, American Airlines parent AMR Corp. reportedly said on Thursday that it will pay Bombardier more than US$770 million for a 22-plane order.

The Canadian dollar rose. One U.S. dollar bought C$1.0606, compared to C$1.0663, late Wednesday.