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Dec. 13, 2012 /PRNewswire/ - 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 process.
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
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.