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.