OKLAHOMA CITY,
May 2, 2014 /PRNewswire/ - Equal
Energy Ltd. ("Equal", "the Company", "we" or "our") (NYSE: EQU)
(TSX: EQU) today announced that it has signed an amended Gas
Purchase and Processing Agreement (the "Agreement") with
Scissortail Energy LLC ("Scissortail"), a subsidiary of
Kinder Morgan. Equal previously
disclosed in its Annual Report on Form 10-K for the year ended
December 31, 2013 that the Agreement
would terminate on April 30, 2014.
The primary amendments to the Agreement provide for an extension of
its term and a revised pricing formula which will go into effect on
August 1, 2014. The impact on Equal's
2014 cash flow is expected to be a reduction of about $1.3 million, based on recent production levels
and forward realized pricing of $35.70/bbl for NGL and $4.16/mmbtu for gas.
Equal and Scissortail have been in discussions
concerning the Agreement since early February. The Agreement
reflects changes in the midstream marketplace over the six years
since the original agreement was put into place, especially the
competition for gas processing in an environment of increasing gas
supply. The Agreement covers over 90% of Equal's current gas
production and secures a market for that production and planned
future drilling for the next seven years, and as such provides a
certain level of assurance for the strength of the Company's future
operations.
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 impact of the Agreement
on Equal's 2014 cash flow and the level of assurance it provides
for the strength of Equal's future operations. 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. 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.
SOURCE Equal Energy Ltd.