CALGARY, Alberta, Dec. 13, 2012 /CNW/ - Equal Energy Ltd. (TSX: EQU):
(NYSE: EQU) is pleased to confirm that the sale of its royalty and fee
title lands in Western Canada to Keystone Royalty Corp. has closed as
scheduled today. Cash proceeds are $12.13 million. Equal has also
agreed to assign residual Canadian resource income tax pools to
Keystone as part of the royalty sale transaction.
The royalty sale is the final transaction in a series of asset sales
concluded as part of Equal's recently completed strategic review
Equal is also pleased to announce that it has secured a drilling rig
ideally suited for drilling in the Hunton play in Oklahoma. Drilling
is expected to commence in early January.
The company has contracted the same rig in the past and has experienced
excellent performance from the equipment and crew. "Our technical team
in Oklahoma has a well thought-out drilling program aimed at maximizing
production and reserves within our 2013 capital budget", Don Klapko,
Equal's President and CEO, said. "Our goal is to optimize both capital
and operating costs and we are excited to get the program under way".
Overhead Reduction, Management Changes and Board Composition:
Management is also acting decisively to reduce overhead in the Canadian
office as Equal's focus shifts to its operations in Oklahoma. A small
staff will remain in Calgary to ensure that all year-end reserve and
financial reporting requirements are met on a timely basis.
Equal expects to save over $7.5 million dollars in overhead and interest
costs in 2013 compared with 2012 as a result of the focus in Oklahoma,
and the substantial reduction in debt brought about by the asset sales.
Dan McKinnon, Senior Vice-President, Engineering, will leave the
company, effective December 31. "Dan joined us earlier this year,
quickly came up to speed and has made a valuable contribution to Equal
during his time here. Don Klapko said. He put a major effort into the
strategic review process and was a key part of its success".
Equal has begun a search to fill various senior positions in Oklahoma,
notably in the exploration, engineering and finance functions. Both
internal and external candidates will be considered. Separately, the
board of directors is actively reviewing its composition to take
account of the fact that the company's asset base is now entirely in
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 focused on producing properties located in Oklahoma.
Equal has compiled a multi-year drilling inventory for its Hunton
liquids rich natural gas property in Oklahoma.
Certain information in this press release constitutes forward-looking
statements under applicable securities law including the arrival of the
drilling rig and the timing of commencement of drilling, G&A and
interest savings projections and success in filling executive and board
positions. 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
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 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.
For further information:
SVP Finance & CFO
(403) 538-3580 or (877) 263-0262
President and Chief Executive Officer
(403) 536-8373 or (877) 263-0262
Vice-President - Kingsdale Communications Inc.
(416) 867 2304