June 7, 2010 / 1:42 PM / in 7 years

UPDATE 1-Compton to sell some Alberta assets for C$150.2 mln

* To sell a portion of assets in Nilton and Gilby

* Cuts 2010 production outlook

* Raises 2010 capital expenditure

* Shares up 4 pct

June 7 (Reuters) - Compton Petroleum Corp CMT.TO, a natural gas producer, said it agreed to sell a portion of its assets in central Alberta for proceeds of about C$150.2 million and cut its 2010 production outlook.

The company said its would use the proceeds from the sale of the natural gas assets located in the Niton and Gilby areas to cut down its debt and use it as additional capital for its 2010 development program.

The company said it expects the transaction to add to earnings as reduced costs would offset the lower production levels.

The properties to be sold produced about 3,100 barrels of oil equivalent per day (boe/d) on a combined basis, the company said.

The company cut its 2010 production forecast to 16,000 to 16,500 boe/d, from its earlier expectation of hitting the top range of its outlook ranging between 17,900 and 18,500 boe/d.

The company also raised its 2010 capital expenditure to C$70 million to C$80 millions from its prior view of C$60 million to C$70 million.

Shares of the company were up 4 percent at 77 Canadian cents on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Aradhana Aravindan) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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