CALGARY,
Alberta, Oct. 15, 2012 /CNW/ -
Equal Energy Ltd. (the "Company" or "Equal") (TSX: EQU): (NYSE:
EQU) is pleased to confirm that the sale of Halkirk/Alliance/Wainwright/Clair Assets ("HAWC") and
substantially all remaining Canadian non-producing assets has
closed on October 15, 2012.
Cash proceeds were $15.4 million
compared to $17.4 million pursuant to
the Company's press release on October 1,
2012 due to adjustments agreed to by the Company based on
final due diligence conducted by the purchaser. Equal will
apply the proceeds to reduce the amount drawn on its bank credit
facility to approximately $55
million. Equal's bank lenders are currently reviewing
the limit on the bank credit facility subsequent to the sale of the
Company's Northern Oklahoma assets
in September and the Canadian asset sale that closed today.
The HAWC disposition is the second step in
Equal's ongoing strategic review process. Management and the
special committee of the board of directors continue to review
opportunities for the Company's remaining assets. The
Company's portfolio of assets now consists of the liquids rich
natural gas asset in Central
Oklahoma, the Cardium light oil play in the Lochend area of
Alberta and certain royalty
interests in Canada.
Adjusting for this sale and the previously announced sale of
Northern Oklahoma, Equal's current
corporate production is approximately 8,300 boe/day consisting of
48% natural gas, 45% NGL's and 7% oil.
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 convertible 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 geographically diversified with producing properties
located in Alberta and
Oklahoma. Equal has compiled
a multi-year drilling inventory for its properties including its
oil opportunity in the Lochend Cardium play of 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 or certainty of any further action in the
Company's strategic review process, the repayment of the bank
credit facility and the outcome of the bank lenders review of the
limit on the bank credit facility. 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, such as 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.
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.