--Public Is Invited To Attend Webcast Investor Presentation--
OKLAHOMA CITY, OK, June 24, 2013 /CNW/ - Equal Energy Ltd. (NYSE: EQU)
(TSX:EQU.TO) is pleased to provide an operations update to coincide
with its investor field trip scheduled for tomorrow. Equal also invites
the public to attend a webcast of its field trip investor presentation
from 8:00 am to 9:30 am Central Time tomorrow.
Key information to be discussed includes:
Results from Equal's two wells completed last week that are currently on
production. These wells are the fourth and fifth wells of the ten well
program planned for this year.
Average production rates of the wells completed in 2013 are above the
type curve model, while well costs are in line with budget.
Drilling operations on the sixth well are wrapping up. Six wells drilled
before the end of June provides validation of operational improvement
including less than 30 days of drilling time per well.
Production is on track to meet or exceed full year budget rate of 6,400
"During our investor field trip we will be explaining the benefit of our
strategy, which is to focus on the Hunton play in central Oklahoma,"
said Don Klapko, President and Chief Executive Officer. "Our drilling
so far in the second quarter, as in the first quarter, has a perfect
record for successful Hunton wells and as a result we remain on track
to meet the previously disclosed full-year production target of 6,400
barrels of oil equivalent per day, based on a 10 well drilling
As part of Equal's second quarter 2013 financial disclosure on August 8,
2013, the company expects to announce the results of the Board's
mid-year capital efficiency review and Equal's associated go forward
Based on actual production for April and May and anticipated production
for June, Equal expects it will achieve second quarter 2013 production
of approximately 6,300 boe/d. This compares to 6,280 boe/d in the first
quarter of 2013. The quarterly growth in production was achieved in
spite of three unusual events that impacted field operations and caused
an approximate 170 boe/d to be shut in during the quarter. The first of
these events was caused by a third party product purchaser's
infrastructure failure, causing our Goodnight field to be shut in for
17 days in April. The second was due to a lightning strike at a
disposal well and the last was the previously reported tornado in May.
Operations have since returned to normal.
The fourth and fifth wells were completed last week and are currently
producing at a combined rate of approximately 170 boe/d, net to Equal,
and are continuing to increase. Hunton wells typically take an average
of 90 days to reach peak production and then usually maintain that peak
rate for 18 months. Average capital expenditures for the two latest
wells, including infrastructure costs, were $2.6 million. This compares
favorably with an average of $2.7 million per well for the first three
wells of 2013.
Drilling operations on Equal's sixth well for 2013 are currently
wrapping up. We anticipate this well to be completed and online in
Internal Capital Efficiency Review
After the sixth well is brought on line, Equal will perform a look-back
analysis to evaluate the capital efficiency of Equal's 2013 drilling
program. However, based on the faster than expected drilling operations
and production success experienced so far this year, Equal is currently
committing to drill the seventh well of its planned 10 well program.
Looking ahead to the second half of the year and taking into
consideration factors such as commodity prices and Equal's share price,
the Board of Directors will consider various operational options for
the remainder of 2013.
Depending on the outcome of this review, Equal plans to update 2013
guidance as part of its second quarter results news release on August
8, 2013. For reference, based on typical Hunton production profile, one
additional successful well is projected to increase next year's
production by approximately 2% at a total expected cost of $2.7 million
for drilling, completion and infrastructure.
Investor Field Trip Presentation Webcast
Equal's webcast of its Investor Field Trip on Tuesday, June 25 will
provide the public with real-time access to the operational
presentation and discussion.
Equal will then conduct a field tour of its operations for investors who
are present to participate. The presentation and webcast will be posted
to Equal's website at www.equalenergy.ca and will be available via replay.
About Equal Energy:
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 law including full year 2013 and
second quarter 2013 production, announcements regarding the planned
capital efficiency and strategic alternatives reviews, the typical
Hunton production profile, the planned drilling and completion of
wells, the planned investor day presentation and other matters. 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
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 CEO
(403) 536-8373 or (877) 263-0262
VP and CFO