Equal Energy Says Oklahoma Tornado Will Not Have Material Impact On Company; Announces Investor and Analyst Field Trip
OKLAHOMA CITY, OKLAHOMA, June 3, 2013 /PRNewswire/ – Equal Energy Ltd. (NYSE:
EQU) (TSX: EQU.TO) today reported the effect on its operations of a
tornado that occurred on Sunday, May 19, 2013. Specifically, Equal
announced that its two field office buildings in Carney, Oklahoma were
largely destroyed and that production was temporarily reduced. However,
none of the company’s employees or their families were injured. The
company does not expect a material impact on its financial results.
Separately, Equal said it has posted to its website (www.equalenergy.ca) the presentation from its recent Annual and Special Meeting of
shareholders. Equal also announced that despite the tornado damage it
intends to host a site visit at its Oklahoma facilities on June 25,
2013, for investors and analysts. Interested parties should notify
Equal at email@example.com or 405-242-6000 by June 10, 2013.
With regard to the May 19th tornado, Equal said five of its Carney-based
employees who live in the community survived by sheltering in a safe
room at one of Equal’s two Carney buildings. Those employees also
invited 19 family members and neighbors into the safe room, all of whom
were uninjured. Equal extends its sympathy and support to those who
suffered more severely from this tornado and others that touched down
in Oklahoma and nearby states in mid-May.
“I’m very proud of the response by all of our Oklahoma employees, whose
top priority was safety,” said Don Klapko, President and Chief
Executive Officer. “After the tornado passed they moved quickly to
determine each others’ whereabouts and well-being. They then assessed
the extent of the damage to the producing assets and took steps to
minimize any disruption to production. Within 48 hours of the storm
they re-established a temporary field office using portable offices,
they salvaged files and other materials from the damaged buildings, and
they recovered and repaired field vehicles and other key assets. Thanks
to their efforts, we are well positioned to carry on.”
Equal expects that damage from the tornado will largely be covered by
insurance. The determination of rebuilding costs remains subject to a
number of factors, including an inspection by a structural engineer to
determine if one of the two buildings may be partly salvageable and
consultation with an architect. Based on preliminary information, Equal
expects that it may be able to move back into permanent structures at
Carney by the end of 2013 or early in 2014.
Equal estimates that tornado-related disruptions reduced May production
by less than 100 barrels of oil equivalent per day (boe/d). Production
was back to normal three days after the tornado and Equal remains on
track to achieve its 2013 guidance of an average of 6,400 boe/d.
About Equal Energy:
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.
Certain information in this press release constitutes forward-looking
statements under applicable securities law including the magnitude of
insurance coverage and rebuilding costs, the impact of the tornado on
production and the anticipated go-forward production. 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
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.