April 9, 2012 / 2:12 PM / 5 years ago

UPDATE 1-Compton Petroleum cuts 2012 output; lenders trim funding

* Shares fall 11 pct

* Cuts 2012 capex forecast to C$14 mln-C$16 mln

April 9 (Reuters) - Canada’s Compton Petroleum Corp lowered its 2012 production output and the oil and gas company said lenders have cut credit available by more than a fifth, mainly due to lower natural gas prices.

Shares of the company fell 11 percent to C$3.51, to its lowest ever, before recovering some of their losses to trade at C$3.60 on Monday on the Toronto Stock Exchange.

The lenders notified the company that credit available under the credit facility has been reduced to C$110 million ($110.94 million) from C$140 million, with any excess drawn over the available amount due May 7, Compton Petroleum said in a statement.

The cut follows the semi-annual review of Compton’s borrowing base by the lenders and is primarily driven by a lower natural gas price forecast, the gas-focussed explorer said.

Natural gas prices in the United States stood at $2.09 per million British thermal units on Monday, more than 85 percent below the peak in 2005.

Compton cut its 2012 production outlook range to 10,800 barrels of oil equivalent per day (boepd) to 11,200 boepd from its earlier view of 11,750 boepd to 12,250 boepd.

The company also narrowed its 2012 capital expenditures forecast range to C$14 million to C$16 million, from C$14 to C$18 million.

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