CALGARY, Alberta, April 26, 2012 /PRNewswire/ - Equal Energy Ltd.
(EQU: TSX, NYSE) (the "Company" or "Equal") is pleased to confirm
that the previously announced sale of 50% of its Mississippian
interests for approximately US$18
million to Atlas Resource Partners, L.P. ("Atlas") (NYSE:
ARP) has successfully closed today. Equal and Atlas are
working together with the intention to commence drilling in July of
2012 with 6 joint venture wells to be drilled by year end.
Equal has applied the proceeds of the sale to reduce debt and will
then utilize its cash flow and credit facility to fund
participation in the drilling program. At this time total
debt and working capital in the Company is approximately
$147 million. The amount drawn
on Equal's $200 million bank credit
facility is approximately $102
million giving the Company the financial flexibility to be
active participants in the planned Mississippian oil drilling.
Don Klapko,
President and CEO commented. "I am pleased to have closed this
transaction today and established a joint venture relationship with
a strong player, Atlas. This is a major step in our strategy
to re-direct our focus to oil plays in this time of depressed
natural gas prices."
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.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 54 percent crude oil and natural gas liquids and 46
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.
Forward-Looking Statements
Certain information in this press release
constitutes forward-looking statements under applicable securities
law including ongoing drilling plans and the availability of funds
under Equal's 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, including the commencement and
continuation of joint venture operations on the Mississippian play
with Atlas, the repayment of debt and the availability of funds
under Equal's credit facility; 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.