CALGARY, Alberta, May 3, 2012 /PRNewswire/ - Equal Energy Ltd.
("Equal" or the "Company") (TSX: EQU) (NYSE: EQU) announces that
its Board of Directors has initiated a strategic review process to
identify, examine and consider alternatives with the view to
enhancing shareholder value. Strategic alternatives may include,
but are not limited to, the sale of all or a portion of the
Company's assets, the outright sale of the corporation, a merger or
other business combination, a recapitalization, acquisitions, as
well as continued execution of its business plan, or any
combination thereof.
The Board of Directors believes that the
Company's shares trade at a significant discount to the value of
the underlying assets, especially given its high-quality Cardium
and Viking oil plays in Canada,
its Hunton liquids rich gas play and its emerging Mississippian
light oil play in Oklahoma.
In response, the Board of Directors has
established a Special Committee comprised of independent directors
to oversee the strategic review process. To assist it in achieving
its objectives, the Special Committee has retained Scotiabank as
its advisor. Parties interested in obtaining additional information
regarding this process or the Company can contact Scotiabank at the
number listed below. This process has not been initiated as a
result of any particular offer.
It is the Company's current intention not to
disclose developments with respect to the strategic review process
until the Board of Directors has approved a specific transaction,
action plan or otherwise determines that disclosure is necessary or
appropriate. The Company cautions that there are no assurances or
guarantees that the process will result in a transaction or, if a
transaction is undertaken, the terms or timing of such a
transaction. The Company has not yet set a definite schedule to
complete its evaluation or process.
About Equal Energy Ltd.
Equal is an exploration and production oil and
gas company based in Calgary, Alberta,
Canada with its United
States operations office located in Oklahoma City, Oklahoma. Equal's shares
and debentures are listed on the Toronto Stock Exchange under the
symbols (EQU, EQU.DB.B) and Equal's shares are listed on the New
York Stock Exchange under the symbol (EQU). The portfolio of
oil and gas properties is located in Alberta and Oklahoma. Production is comprised of
approximately 51percent crude oil and natural gas liquids and 49
percent natural gas. Equal has compiled a multi-year drilling
inventory for its properties including its oil play opportunities
in the Cardium and Viking in central Alberta in addition to its extensive inventory
of drilling locations in the Hunton liquids-rich, natural gas play
in Oklahoma.
Forward-Looking Statements
Certain information in this press release
constitutes forward-looking statements under applicable securities
law including the timing and anticipated results of the strategic
review process, Any statements that are contained in this press
release that are not statements of historical fact may be deemed to
be forward-looking statements. Forward-looking statements are often
identified by terms such as "may," "should," "anticipate,"
"expects," "seeks" and similar expressions.
Forward-looking statements necessarily
involve known and unknown risks, including risks associated with
oil and gas production; marketing and transportation; loss of
markets; volatility of commodity prices; currency and interest rate
fluctuations; imprecision of reserve estimates; environmental
risks; competition; incorrect assessment of the value of
acquisitions; failure to realize the anticipated benefits of
acquisitions or dispositions; inability to access sufficient
capital from internal and external sources; changes in legislation,
including but not limited to income tax, environmental laws and
regulatory matters. Readers are cautioned that the foregoing
list of factors is not exhaustive.
While the Board of Directors has every
intention of improving the recognition of value it believes is
inherent in the Company's portfolio, there is no guarantee that the
strategic review process will result in an increased valuation of
the Company stock.
Readers are cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated
forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
Additional information on these and other
factors that could affect Equal's operations or financial results
are included in Equal's reports on file with Canadian and U.S.
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com), the SEC's website (www.sec.gov),
Equal's website (www.equalenergy.ca) or by contacting Equal.
Furthermore, the forward looking statements contained in this news
release are made as of the date of this news release, and Equal
does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result
of new information, future events or otherwise, except as expressly
required by securities law.
SOURCE Equal Energy Ltd.