Equatorial is pleased to announce that David N. Matheson will be continuing as President of Equatorial Energy (Indonesia) Inc.
Mr. John Rooney, President and CEO of Equatorial, stated, "The combination of Equatorial and Resolute is an excellent transaction for all of Equatorial's stakeholders. Equatorial's employees, officers and directors have worked diligently pursuing a value enhancement plan for Equatorial and this transaction is a very significant step in that plan. Equatorial is very pleased with the addition of Resolute's experienced and successful management team. The business combination of Equatorial and Resolute will result in a much stronger company with enhanced access to capital."
Commenting on the transaction Mr. Barry Jackson, Chairman of Resolute, stated, "This transaction augments Equatorial's management with the Resolute team and results in a very strong balance sheet upon completion of the transaction and the expected settlement of Equatorial's out-of-the-money natural gas hedging positions. The company's stronger balance sheet will give it the capability to substantially expand its Western Canadian asset base."
Mr. Randell Pardy, President and CEO of Resolute, added, "We are very pleased for the opportunity to work with Equatorial's staff to re-establish growth in its Canadian assets. The Company's Indonesian operations have tended to overshadow Equatorial's diversified Western Canadian asset base, which accounts for over 80% of the value of the Company and is heavily weighted to natural gas. We now have the opportunity to more aggressively explore and develop these assets and expand further through complementary acquisitions. We look forward to maintaining Equatorial's excellent relationship with PERTAMINA and we intend to continue to increase the value of the Indonesian assets in the coming period."