CALGARY, Alberta, Oct. 15, 2012 /PRNewswire/ - Equal Energy Ltd. (the "Company" or "Equal") (TSX: EQU): (NYSE: EQU) is pleased to confirm that the sale of Halkirk/ Alliance/ Wainwright/Clair Assets ("HAWC") and substantially all remaining Canadian non-producing assets has closed on October 15, 2012. Cash proceeds were $15.4 million compared to $17.4 million pursuant to the Company's press release on October 1, 2012 due to adjustments agreed to by the Company based on final due diligence conducted by the purchaser. Equal will apply the proceeds to reduce the amount drawn on its bank credit facility to approximately $55 million. Equal's bank lenders are currently reviewing the limit on the bank credit facility subsequent to the sale of the Company's Northern Oklahoma assets in September and the Canadian asset sale that closed today.
The HAWC disposition is the second step in Equal's ongoing strategic review process. Management and the special committee of the board of directors continue to review opportunities for the Company's remaining assets. The Company's portfolio of assets now consists of the liquids rich natural gas asset in Central Oklahoma, the Cardium light oil play in the Lochend area of Alberta and certain royalty interests in Canada. Adjusting for this sale and the previously announced sale of Northern Oklahoma, Equal's current corporate production is approximately 8,300 boe/day consisting of 48% natural gas, 45% NGL's and 7% oil.
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 geographically diversified with producing properties located in Alberta and Oklahoma. Equal has compiled a multi-year drilling inventory for its properties including its oil opportunity in the Lochend Cardium play of Alberta in addition to its extensive inventory of drilling locations in the Hunton liquids-rich, natural gas play in Oklahoma.
Forward-Looking StatementsCertain information in this press release constitutes forward-looking statements under applicable securities law including the timing or certainty of any further action in the Company's strategic review process, the repayment of the bank credit facility and the outcome of the bank lenders review of the limit on the bank 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.
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