OKLAHOMA CITY, May 8, 2014 /PRNewswire/ - Equal Energy Ltd. ("Equal", "the
Company", "we" or "our") (NYSE: EQU; TSX: EQU) is pleased to announce
our operating and financial results for the three months ended March
31, 2014. All dollar amounts are in U.S. dollars unless otherwise
indicated and volumes are net of royalty payments.
"Equal's first quarter results benefited from both increased production
rates and higher commodity prices. The impact of the cold winter this
year created both positives and negatives for Equal. We experienced
increased demand for natural gas and propane, but the extreme cold also
hindered production and forced downtime which resulted in higher
workover expenses during the quarter," said Don Klapko, President and
Chief Executive Officer. Mr. Klapko further stated that "On May 1st, we
announced that an amendment extending the original Arrangement
Agreement with Petroflow had been signed after documentation that
Petroflow had secured financing commitments was provided to our Board.
The amendment provides for two $0.05 dividend payments by Equal to our
shareholders, an updated capital expenditure program, anticipated
incremental general and administrative costs and an extension of the
outside termination date of the agreement to July 31, 2014."
Solid Operating Results
-
First quarter production averaged 6,973 boe/d, an increase of 11% from
the 6,280 boe/d produced in the first quarter of 2013
-
Average production expenses per boe were $6.47/boe, representing an
increase of 6% from 2013 due to higher workover expense during the
quarter
-
Oil, gas and NGL revenue per boe, excluding the impact of commodity
contracts, increased by 35% over 2013, the result of higher realized
prices
It is important to note that our operating covenants in the Arrangement
Agreement (as defined below) influenced our operational activities for
the quarter. As per terms of the Arrangement Agreement, and at the
request of Petroflow, we reduced our capital expenditure program
through April 2014. Our Arrangement Agreement with Petroflow is the
result of a process officially undertaken in March 2013 by a committee
of three independent directors (the "Special Committee") and resulted
in the Arrangement Agreement announced by Equal at the end of 2013 and
the Amendment (as defined below) announced by Equal on May 1, 2014.
Arrangement Agreement and Amendment
On December 9, 2013, Equal announced that it had entered into a
definitive agreement ("Arrangement Agreement") with Petroflow Energy
Corporation and Petroflow Canada Acquisition Corp. (collectively
"Petroflow") for the cash purchase of all of the issued and outstanding
common shares of Equal at a price of $5.43 per share, on a
fully-diluted basis. The transaction will be completed by way of a plan
of arrangement under the Business Corporations Act (Alberta) (the
"Arrangement"). Equal's Board of Directors unanimously resolved to
recommend that Equal's shareholders vote in favor of the Arrangement.
On May 1, 2014, the Arrangement Agreement was amended (the "Amendment")
subsequent to Petroflow securing debt financing commitment letters in
order to (a) extend the outside termination date contained therein from
May 1, 2014 to July 31, 2014, (b) permit Equal to declare and pay a
cash dividend of $0.05 per common share to shareholders on May 28,
2014, (c) permit Equal to pay a cash dividend of $0.05 cents per common
share to its common shareholders who are entitled to receive
Arrangement consideration upon the completion of the Arrangement and
(d) amend an approved budget for Equal, agreed to by all the parties to
the Arrangement Agreement.
The Arrangement Agreement is the result of a strategic review process
undertaken by the Special Committee at the beginning of 2013 in
response to the unsolicited expression of interest by a third party.
The Special Committee was formed to consider a full range of strategic
alternatives in order to maximize shareholder value. Alternatives
considered by Equal included continuing as an independent public
company, the acceleration of capital deployed in developing assets, a
corporate sale, a return of capital to shareholders via dividend
distribution or share buyback, a master limited partnership, and an
acquisition by an outside party.
Looking Ahead
Equal expects to complete the Arrangement with Petroflow; however, the
completion of the Arrangement remains subject to a number of conditions
that must be met or waived, including approval by 66 2/3 of the votes
cast by Equal's shareholders and "minority approval" (as that term is
defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions) at a special meeting. Among the other conditions to closing of the
Arrangement, is the requirement that Petroflow obtain financing for the
transaction, which is subject to meeting certain customary closing
conditions. Although Petroflow has secured debt financing commitment
letters, this financing is subject to the satisfaction or waiver of the
conditions set forth in the applicable commitment letters. As a result,
there is no guarantee that the Arrangement will be completed, or that
if completed, it will be completed on or prior to July 31, 2014, the
outside date contemplated in the Arrangement Agreement, as amended.
In certain circumstances, either Equal or Petroflow may be required to
pay a termination fee of two million dollars to the other party.
Pursuant to the terms of the original Arrangement Agreement, Equal
agreed to reduce its capital budget through April 2014. Pursuant to the
Amendment, Equal will increase its capital program in mid-May and incur
incremental general and administrative costs in accordance with the
Arrangement Agreement through July 31, 2014. Although Equal will pursue
selective drilling during this period, we plan to maintain cost
discipline and a strong balance sheet. We believe our sources of cash,
including cash on hand, cash flow and our undrawn credit facility will
be sufficient to fund our operations and capital expenditures until the
Arrangement is completed. In the event the proposed transaction with
Petroflow does not occur, Equal will formalize a plan to continue to
actively exploit our proven play in the Hunton in Central Oklahoma.
Financial and Operational Results
Cash flow before balance sheet changes, a non-GAAP measure, was $12.2
million for the first quarter of 2014, compared to $7.1 million for
2013. Nonrecurring costs of approximately $0.9 million, related to
expenditures associated with the Arrangement Agreement with Petroflow
negatively impacted Equal's income and cash flow.
Actual capital expenditures for the first quarter were $2.4 million.
This was spent mainly on the completion of three wells drilled in 2013
but completed in January 2014, infrastructure associated with these
three new wells, general maintenance capital and some land acquisition
costs. The remainder of the $6.4mm of PP&E additions shown in the first
quarter cash flow statement was due to $4.0mm of payments for work
completed in 2013 but not paid until 2014. Our first quarter capital
expenditure program was fully funded by $12.2mm of cash flow before
balance sheet changes generated from operations.
EQUAL ENERGY LTD.
CONSOLIDATED BALANCE SHEETS |
(unaudited, in thousands) | March 31, 2014 |
December 31, 2013
|
Assets |
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
| $ 17,477 |
|
$ 15,631
|
Accounts receivable, net
| 15,234 |
|
13,581
|
Prepaid expenses, deposits and other
| 715 |
|
1,051
|
Total current assets
| 33,426 |
|
30,263
|
|
|
|
|
Oil and natural gas properties, full cost method of accounting:
|
|
|
|
Proved, net of accumulated depletion of $247 million and $243 million,
respectively
| 159,745 |
|
162,061
|
Unproved
| 4,064 |
|
4,014
|
Total oil and natural gas properties
| 163,809 |
|
166,075
|
Other capital assets, net of accumulated depreciation of $0.8 million
and $0.8 million, respectively
| 224 |
|
152
|
Total property, plant and equipment, net
| 164,033 |
|
166,227
|
|
|
|
|
Other assets
| 882 |
|
989
|
Deferred income tax asset
| 29,150 |
|
30,906
|
Total assets
| $ 227,491 |
|
$ 228,385
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities
|
|
|
|
Accounts payable and accrued liabilities
| $ 10,841 |
|
$ 17,134
|
Asset retirement obligation
| 284 |
|
278
|
Commodity contracts
| 1,235 |
|
341
|
Total current liabilities
| 12,360 |
|
17,753
|
|
|
|
|
Convertible debentures
| 40,707 |
|
42,309
|
Asset retirement obligation
| 4,451 |
|
4,362
|
Total liabilities
| 57,518 |
|
64,424
|
|
|
|
|
Shareholders' Equity |
|
|
|
Common shares, $0.01 par value unlimited authorized shares, and
36,100,788 and 35,806,337 shares issued and outstanding, respectively
| 361 |
|
358
|
Additional paid-in capital
| 230,886 |
|
230,574
|
Accumulated other comprehensive loss
| (102,102) |
|
(102,102)
|
Retained earnings
| 40,828 |
|
35,131
|
Total shareholders' equity
| 169,973 |
|
163,961
|
Total liabilities and shareholders' equity
| $ 227,491 |
|
$ 228,385
|
EQUAL ENERGY LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPRESHENSIVE INCOME |
| Three months ended March 31, |
(unaudited) (in thousands, except per share data) | 2014 |
2013
|
|
|
|
|
Revenues
|
|
|
|
NGL, natural gas and oil revenues
| $ 22,146 |
|
$ 14,805
|
Loss on commodity contracts
| (2,062) |
|
(3,271)
|
Total revenues
| 20,084 |
|
11,534
|
|
|
|
|
Expenses
|
|
|
|
Production
| 4,061 |
|
3,455
|
Production taxes
| 753 |
|
926
|
General and administrative, including share-based compensation
| 3,312 |
|
3,154
|
Interest expense
| 879 |
|
949
|
Depletion and depreciation
| 4,518 |
|
4,867
|
Amortization of deferred charges
| 110 |
|
110
|
Accretion of asset retirement obligation
| 95 |
|
101
|
Gain on sale of assets
| (23) |
|
(28)
|
Unrealized foreign exchange gain
| (1,526) |
|
(969)
|
Total expenses
| 12,179 |
|
12,565
|
Income (loss) from continuing operations before taxes
| $ 7,905 |
|
$ (1,031)
|
|
|
|
|
Taxes
|
|
|
|
Current tax expense
| (63) |
|
-
|
Deferred tax (expense) benefit
| (1,756) |
|
801
|
Income/(loss) from continuing operations
| 6,086 |
|
(230)
|
|
|
|
|
Discontinued operations:
|
|
|
|
Income (loss) from discontinued operations
| (328) |
|
1,762
|
Net income
| $ 5,758 |
|
$ 1,532
|
Other comprehensive income/(loss)
|
|
|
|
Foreign currency translation adjustment
| - |
|
61
|
Comprehensive income
| $ 5,758 |
|
$ 1,593
|
|
|
|
|
Earnings per share information :
|
|
|
|
Basic earnings (loss) per share from continuing operations
| $ 0.17 |
|
$ (0.01)
|
Basic earnings (loss) per share from discontinued operations
| (0.01) |
|
0.05
|
Basic earnings per share
| $ 0.16 |
|
$ 0.04
|
|
|
|
|
Diluted earnings (loss) per share from continuing operations
| $ 0.16 |
|
$ (0.01)
|
Diluted earnings (loss) per share from discontinued operations
| (0.01) |
|
0.05
|
Diluted earnings per share
| $ 0.15 |
|
$ 0.04
|
EQUAL ENERGY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Three months ended March 31, |
(unaudited) (in thousands) | 2014 |
2013
|
Operating Activities |
|
|
|
Net income
| $ 5,758 |
|
$ 1,532
|
Net (income) loss from discontinued operations
| 328 |
|
(1,762)
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
operating activities:
|
|
|
|
Depletion and depreciation
| 4,518 |
|
4,867
|
Accretion of asset retirement obligation
| 95 |
|
101
|
Cash paid on asset retirement obligation
| (2) |
|
-
|
Share-based compensation
| 254 |
|
307
|
Amortization of deferred charges
| 110 |
|
110
|
Loss on commodity contracts
| 2,062 |
|
3,271
|
Cash (payments) receipts from settled derivatives
| (1,168) |
|
486
|
Gain on sale of assets
| (23) |
|
(28)
|
Deferred tax (benefit) / expense
| 1,756 |
|
(801)
|
Unrealized foreign exchange gain
| (1,526) |
|
(969)
|
Change in assets and liabilities:
|
|
|
|
Accounts receivable
| (1,653) |
|
218
|
Prepaid expenses and other current assets
| 336 |
|
22
|
Accounts payable and accrued liabilities
| (2,274) |
|
2,974
|
Net cash provided by operating activities - continuing operations
| 8,571 |
|
10,328
|
Net cash used in operating activities - discontinued operations
| (328) |
|
(2,716)
|
Net cash provided by operating activities
| 8,243 |
|
7,612
|
Investing Activities |
|
|
|
Property, plant and equipment additions
| (6,420) |
|
(7,363)
|
Proceeds on sale of property, plant and equipment
| 23 |
|
-
|
Net cash used in investing activities
| (6,397) |
|
(7,363)
|
Financing Activities |
|
|
|
Dividend
| - |
|
(1,805)
|
Net cash used in financing activities
| - |
|
(1,805)
|
Change in cash and cash equivalents
| 1,846 |
|
(1,556)
|
Cash and cash equivalents, beginning of period
| 15,631 |
|
23,086
|
Cash and cash equivalents, end of period | $ 17,477 |
|
$ 21,530
|
Supplementary Cash Flow Information |
|
|
|
Interest paid
| $ 1,373 |
|
$ 1,518
|
Income tax paid
| - |
|
-
|
EQUAL ENERGY LTD.
(in thousands, except for boe/d) | Three months ended March 31, |
| Q1 2014 |
| Q1 2013 |
| Change |
| % Change |
Net Production per Day: |
|
|
|
|
|
|
|
Oil (Bbl)
| 241 |
|
157
|
|
84
|
|
54%
|
NGL (Bbl)
| 3,411 |
|
3,084
|
|
327
|
|
11%
|
Natural Gas (Mcf)
| 19,925 |
|
18,232
|
|
1,693
|
|
9%
|
Total (Boe/d)
| 6,973 |
|
6,280
|
|
693
|
|
11%
|
|
|
|
|
|
|
|
|
Net Production: |
|
|
|
|
|
|
|
Oil (MBbl)
| 22 |
|
14
|
|
8
|
|
57%
|
NGL (MBbl)
| 307 |
|
278
|
|
29
|
|
10%
|
Natural Gas (MMcf)
| 1,793 |
|
1,641
|
|
152
|
|
9%
|
Total (MBoe)
| 628 |
|
566
|
|
62
|
|
11%
|
|
|
|
|
|
|
|
|
Net Sales: |
|
|
|
|
|
|
|
Oil Sales
| $ 2,090 |
|
$ 1,305
|
|
$ 785
|
|
60%
|
NGL Sales
| 12,477 |
|
9,146
|
|
3,331
|
|
36%
|
Natural Gas Sales
| 7,579 |
|
4,354
|
|
3,225
|
|
74%
|
| $ 22,146 |
|
$ 14,805
|
|
$ 7,341
|
|
50%
|
|
|
|
|
|
|
|
|
Average Sales Prices: |
|
|
|
|
|
|
|
Oil (per Bbl)
| $ 95.00 |
|
$ 92.12
|
|
$ 2.88
|
|
3%
|
NGL (per Bbl)
| 40.64 |
|
32.95
|
|
7.69
|
|
23%
|
Natural Gas (per Mcf)
| 4.23 |
|
2.65
|
|
1.58
|
|
60%
|
Per Boe
| $ 35.29 |
|
$ 26.19
|
|
$ 9.10
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Production Expenses
| $ 4,061 |
|
$ 3,455
|
|
$ 606
|
|
18%
|
Production Taxes
| 753 |
|
926
|
|
(173)
|
|
-19%
|
|
|
|
|
|
|
|
|
Expenses (per Boe): |
|
|
|
|
|
|
|
Production Expenses
| $ 6.47 |
|
$ 6.12
|
|
$ 0.35
|
|
6%
|
Production Taxes
| 1.20 |
|
1.64
|
|
(0.44)
|
|
-27%
|
|
|
|
|
|
|
|
|
Net Producing Wells at Period End | 119 |
|
132
|
|
-13
|
|
-10%
|
|
|
|
|
|
|
|
Operating Expenses (in dollars): |
|
|
|
|
|
|
|
General and Administrative Expense
|
|
|
|
|
|
|
|
(Including Share Based Compensation)
| 3,312 |
|
3,154
|
|
158
|
|
5%
|
|
|
|
|
|
|
|
|
Interest
| 879 |
|
949
|
|
(70)
|
|
-7%
|
|
|
|
|
|
|
|
|
Depletion of Oil and Gas Properties
| 4,508 |
|
4,793
|
|
(285)
|
|
-6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses (dollars per Boe): |
|
|
|
|
|
|
|
General and Administrative Expense
|
|
|
|
|
|
|
|
(Including Share Based Compensation)
| 5.28 |
|
5.58
|
|
(0.30)
|
|
-5%
|
|
|
|
|
|
|
|
|
Interest
| 1.40 |
|
1.68
|
|
(0.28)
|
|
-17%
|
|
|
|
|
|
|
|
|
Depletion of Oil and Gas Properties
| 7.18 |
|
8.48
|
|
(1.30)
|
|
-15%
|
Equal's audited consolidated financial statements, accompanying notes
and Management's Discussion and Analysis for the year ended December
31, 2013 are available in Equal's Form 10-K for the year ended
December 31, 2013 filed with the SEC and available on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on Equal's website at www.equalenergy.ca. Equal's unaudited consolidated financial statements, accompanying
notes and Management's Discussion and Analysis for the three months
ended March 31, 2014 are available in Equal's Form 10-Q filed with the
SEC and available on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com and on Equal's website at www.equalenergy.ca.
Non-GAAP Financial Measures
Management uses certain industry benchmarks to analyze financial
performance. Management feels that these benchmarks are key measures of
profitability and overall sustainability for Equal. These benchmarks as
presented do not have any standardized meanings prescribed by GAAP and
therefore may not be comparable with the calculation of similar
measures presented by other entities.
We believe the use of these non-GAAP financial measures provides useful
information to investors to gain an overall understanding of our
current financial performance. Specifically, we believe the non-GAAP
financial measures included herein provide useful information to both
management and investors by excluding certain expenses and gains and
losses that our management believes are not indicative of our core
operating results. In addition, these non-GAAP financial measures are
used by management for budgeting and forecasting as well as
subsequently measuring our performance, and we believe that we are
providing investors with financial measures that most closely align to
our internal measurement processes. We consider these non-GAAP measures
to be useful in evaluating our core operating results as they more
closely reflect our essential revenue generating activities and direct
operating expenses (resulting in cash expenditures) needed to perform
these revenue generating activities. Our management also believes,
based on feedback provided by the investment community, which the
non-GAAP financial measures are necessary to allow the investment
community to construct its valuation models to better compare our
results with our competitors and market sector.
The non-GAAP financial information is presented using consistent
methodology from year to year. These measures should be considered in
addition to results prepared in accordance with GAAP. In addition,
these non-GAAP financial measures are not based on any comprehensive
set of accounting rules or principles. We believe that non-GAAP
financial measures have limitations in that they do not reflect all of
the amounts associated with our results of operations as determined in
accordance with GAAP and that these measures should only be used to
evaluate our results of operations and financial position in
conjunction with the corresponding GAAP financial measures. The
adjustment factors are described more fully in the table below.
RECONCILIATION OF ADJUSTED WORKING CAPITAL |
|
|
|
|
|
|
|
|
| March 31, 2014 |
December 31, 2013
|
(in thousands) |
|
|
|
|
Cash
|
| $ 17,477 |
|
$ 15,631
|
Accounts receivable, net
|
| 15,234 |
|
13,581
|
Prepaid expenses, deposits and other
|
| 715 |
|
1,051
|
Accounts payable and accrued liabilities
|
| (10,841) |
|
(17,134)
|
Asset retirement obligation
|
| (284) |
|
(278)
|
Adjusted working capital
|
| $ 22,301 |
|
$ 12,851
|
RECONCILIATION OF CASH FLOW BEFORE BALANCE SHEET CHANGES |
|
|
|
|
|
|
| Quarter Ended March 31, |
(in thousands) |
| 2014 |
| 2013 |
|
|
|
|
|
Net cash provided by operating activities
| $ 8,243 |
|
$ 7,612
|
Adjustments:
|
|
|
|
|
Changes in assets and liabilities
| 3,591 |
|
(3,214)
|
Net cash used in operating activities - discontinued operations
| 328 |
|
2,716
|
Cash flow from continuing operations before balance sheet changes
| $ 12,162 |
|
$ 7,114
|
Additional information
In connection with the Arrangement Agreement, Equal filed a preliminary
proxy statement with the Securities and Exchange Commission (the "SEC")
on December 31, 2013. The preliminary proxy statement has also been
filed on the Canadian SEDAR filing system at www.sedar.com, and is available on Equal's website at www.equalenergy.ca. The preliminary proxy statement contains important information about
the proposed Arrangement and related matters. INVESTORS AND
SHAREHOLDERS ARE URGED TO CAREFULLY READ THE PRELIMINARY PROXY
STATEMENT, AND WHEN AVAILABLE, THE FINAL PROXY STATEMENT. Investors and
shareholders may obtain free copies of the preliminary proxy statement
and other documents filed with the SEC by Equal through the website
maintained by the SEC at www.sec.gov. In addition, investors and shareholders may obtain free copies of the
preliminary proxy statement from Equal by telephone at (405) 242-6000,
or by mail at: Equal Energy Ltd., 4801 Gaillardia Pkwy, Suite 325,
Oklahoma City, OK, 73142 Attn: Investor Relations. Equal will furnish
the finalized proxy statement to its shareholders when it is available.
Equal and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the shareholders of
Equal in connection with the proposed transaction. Information
regarding the interests of these directors and executive officers in
the transaction described herein is included in the proxy statement
described above. Additional information regarding these directors and
executive officers is also included in Amendment No 1 to Equal's Annual
Report or Form 10-K for the year ended December 31, 2013 which was
filed with the SEC on April 29, 2014. This document is available free
of charge at the SEC's web site at www.sec.gov, and from Equal by telephone at (405) 242-6000, or by mail at: Equal
Energy Ltd., 4801 Gaillardia Pkwy, Suite 325, Oklahoma City, OK, 73142
Attn: Investor Relations.
Any Equal shareholder that has questions or requires more information
with regard to the voting of Equal shares should contact Kingsdale
Shareholder Services Inc. by toll-free telephone in North America at
1-866-581-1479 or collect call outside North America at 416-867-2272,
or by e-mail at contactus@kingsdaleshareholder.com.
About Equal Energy Ltd.
Equal Energy is an oil and gas exploration and production company based
in Oklahoma City, Oklahoma. Our oil and gas assets are centered on the
Hunton liquids-rich natural gas property in Oklahoma. Our shares are
listed on the New York Stock Exchange and the Toronto Stock Exchange
under the symbol (EQU). Our convertible debentures are listed on the
Toronto Stock Exchange under the symbols EQU.DB.B.
Forward-Looking Statements
Certain information in this press release constitutes forward-looking
statements under applicable securities laws including statements
relating to the completion of the Arrangement and payment of
consideration pursuant to the Arrangement, and Equal's sources of cash
being sufficient to fund its operations until the Arrangement is
completed. 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 and
future production estimates; environmental risks; competition;
incorrect assessment of the value of acquisitions; failure to realize
the anticipated benefits of 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; and failure to obtain shareholder approval
or to meet other closing conditions for the Arrangement, including the
failure of Petroflow to obtain financing for the completion of the
Arrangement. 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 press release are made as of the date of this press
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.
Conversion: Natural gas volumes recorded in thousand cubic feet ("mcf")
are converted to barrels of oil equivalent ("boe") using the ratio of
six (6) mcf to one (1) barrel of oil ("bbl"). Boe's may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf: 1
bbl is based on an energy equivalent conversion method primarily
applicable at the burner tip and does not represent a value equivalent
at the wellhead. All dollar values are in US dollars unless otherwise
stated.
SOURCE Equal Energy Ltd.