This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Equal Energy Announces Partial Sale Of Land And Joint Venture To Develop Oklahoma Mississippian Light Oil Play

CALGARY, Alberta, April 4, 2012 /PRNewswire/ - Equal Energy Ltd. ("Equal" or "the Company") (TSX: EQU) (NYSE: EQU) is pleased to announce that, through one of its wholly owned subsidiaries, it has signed an agreement with Atlas Resource Partners, L.P. ("Atlas") (NYSE: ARP) whereby Equal will sell 50% of its interest in approximately 14,500 net undeveloped acres prospective for Mississippian light oil for total cash consideration of approximately US$18 million.  Concurrently with the sale, Equal will enter into a joint venture with Atlas to embark on an active drilling program in the Mississippian play.

Don Klapko, President and Chief Executive Officer commented, "I am pleased to have been able to reach this agreement with Atlas.  This joint venture fulfills our promise to find a way to accelerate development of our Mississippian play.  Atlas is an accomplished oil and gas operator with extensive drilling and completion experience over a number of horizontal plays in the U.S.  The evolving Mississippian oil play in northern Oklahoma has garnered significant industry attention and has demonstrated strong results.  We are excited to begin an aggressive drilling program with Atlas, deploying the proceeds from the acreage sale at the drill bit, while funding our remaining capital program within the Company's cash flow."

The sale of the Mississippian interests is expected to close on or about April 25, 2012.  In addition to the sale agreement, Atlas and Equal (the "Parties") will enter into a Production and Development Agreement ("PDA") which will govern the terms under which the Parties will conduct their joint venture activities.  The key terms of the PDA are:
  • An initial 12 well drilling program has been agreed.
  • Drilling is expected to commence early in Q3 2012.
  • A joint Development Committee has been created with representatives from both Parties to establish drilling, completion and production strategy.
  • Atlas will conduct drilling and completion activities.
  • Equal will operate the production once the wells are completed.
  • It is expected many of the wells will make use of Equal's existing Hunton water handling infrastructure in Grant, Garfield and Alfalfa counties thus minimizing infrastructure costs and improving project economics.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs