Globe says Kinnear's Caledonian backs Compton financing
Ticker Symbol: C:CMT

Globe says Kinnear's Caledonian backs Compton financing

Compton Petroleum Corp (C:CMT)
Shares Issued 263,573,451
Last Close 12/2/2009 $0.85
Thursday December 03 2009 - In the News

The Globe and Mail reports in its Thursday, Dec. 3, edition that an innovative piece of financing in September saw Compton Petroleum pull in $102-million by selling a royalty on future oil and gas production. The Globe's Andrew Willis writes in the Streetwise column that This sort of financing is relatively common in mining but new to the oil patch. Compton and its advisers at Scotia Capital got kudos for doing this deal, but what no one knew was just who was on the other side of the transaction. Compton chose not to reveal who purchased a 5 per cent interest in its future production. Mr. Willis says it was Jim Kinnear. When last seen in early September, he was leaving the CEO job at Pengrowth Energy Trust, departing from a company he co-founded in 1988 and built into one of the largest players in its field. Pengrowth currently sports a $2.9-billion market capitalization. Now Mr. Kinnear is back with a three-person private company called Kinnear Financial, which is in turn affiliated with a private energy financing concern called Caledonian Royalty. It was Caledonian on the other side of the royalty deal that helped rebuild Compton's balance sheet, says Mr. Willis.

© 2009 Canjex Publishing Ltd.