CALGARY, AB, May 19, 2011 /CNW/ - Equal Energy Ltd. ("Equal" or "the
Company") (TSX: EQU): (NYSE: EQU) has completed the previously
announced bought deal financing of common shares for gross proceeds of
$50,347,500 (net proceeds approximately $47.8 million). The net
proceeds of the financing are expected to be used to finance a portion
of the Company's acquisition of Petroflow's interests in assets
developed pursuant to the now terminated farmout agreement in Oklahoma
which was announced on April 26, 2011. The acquisition is expected to
close on June 1, 2011. The issue was sold by a syndicate of
underwriters, led by Scotia Capital Inc. and including CIBC World
Markets Inc., Wellington West Capital Markets Inc., Desjardins
Securities Inc., Jennings Capital Inc. and PI Financial Corp.
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.A,
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, British Columbia, Saskatchewan and Oklahoma. Production is
comprised of approximately 57 percent crude oil and natural gas liquids
and 43 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.
Certain information in this press release constitutes forward-looking
statements under applicable securities law including the use of proceeds from the
Financing and the anticipated closing date of the acquisition of
Petroflow's interest in the Oklahoma assets. 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 and in
particular include those statements relating to the use of proceeds for
the offering. Forward-looking statements necessarily involve known and
unknown risks, including, without limitation, 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. In particular, drilling
plans,on-production dates and production continuity are particularly
subject to uncertainties and uncontrollable events such as surface
access, rig availability, equipment availability, weather conditions,
changes in geological interpretation, and other factors.
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.
All dollar values are in Canadian dollars unless otherwise stated.
SOURCE Equal Energy Ltd.
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