OKLAHOMA CITY, May 2, 2014 /CNW/ - Equal Energy Ltd. ("Equal", "the
Company", "we" or "our") (NYSE: EQU) (TSX: EQU) today announced that it
has signed an amended Gas Purchase and Processing Agreement (the
"Agreement") with Scissortail Energy LLC ("Scissortail"), a subsidiary
of Kinder Morgan. Equal previously disclosed in its Annual Report on
Form 10-K for the year ended December 31, 2013 that the Agreement would
terminate on April 30, 2014. The primary amendments to the Agreement
provide for an extension of its term and a revised pricing formula
which will go into effect on August 1, 2014. The impact on Equal's 2014
cash flow is expected to be a reduction of about $1.3 million, based on
recent production levels and forward realized pricing of $35.70/bbl for
NGL and $4.16/mmbtu for gas.
Equal and Scissortail have been in discussions concerning the Agreement
since early February. The Agreement reflects changes in the midstream
marketplace over the six years since the original agreement was put
into place, especially the competition for gas processing in an
environment of increasing gas supply. The Agreement covers over 90% of
Equal's current gas production and secures a market for that production
and planned future drilling for the next seven years, and as such
provides a certain level of assurance for the strength of the Company's
About Equal Energy Ltd.
Equal Energy is an oil and gas exploration and production company based
in Oklahoma City, Oklahoma. Our oil and gas assets are centered on the
Hunton liquids-rich natural gas property in Oklahoma. Our shares are
listed on the New York Stock Exchange and the Toronto Stock Exchange
under the symbol (EQU). Our convertible debentures are listed on the
Toronto Stock Exchange under the symbols EQU.DB.B.
Certain information in this press release constitutes forward-looking
statements under applicable securities laws including statements
relating to the impact of the Agreement on Equal's 2014 cash flow and
the level of assurance it provides for the strength of Equal's future
operations. Any statements that are contained in this press release
that are not statements of historical fact may be deemed to be
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 and
future production estimates; environmental risks; competition;
incorrect assessment of the value of acquisitions; failure to realize
the anticipated benefits of 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
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 press release are made as of the date of this press
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.
For further information:
President and Chief Executive Officer
Senior Vice President, Finance and Chief Financial Officer