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Equal Energy Announces Sale of Northern Oklahoma Assets

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Equal Energy (NYSE: EQU) is pleased to announce that,
through one of its wholly owned subsidiaries, it has closed an
agreement with Atlas Resource Partners (NYSE: ARP)
whereby Equal has sold its interest in its Northern Oklahoma assets
located in Grant, Garfield and Alfalfa counties for total cash
consideration of US$40 million, effective July 1st 2012.  The assets sold include production of 1,400 barrels of oil
equivalent per day ("boe/day") (July 2012 average; 73% natural gas, 25%
NGL, 2% oil), related infrastructure and interests in approximately
8,550 acres of Mississippian lands.

Don Klapko, President and Chief Executive Officer said, "The sale of the
Northern Oklahoma asset is a key part of Equal's strategic direction
which will:

High grade our Oklahoma business by focusing on the Central Oklahoma
area where the liquids content is higher than in the Northern asset,

Retain the majority of our Oklahoma assets providing significant upside
for our shareholders associated with any recovery of natural gas and
NGL prices to more historical levels,

Best fit the risk-reward profile of a company our size in an area where
we've had greater than 90 percent drilling success

See full press release

Posted-In: News Guidance M&A

 

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