Equal Energy Announces Its Results for the Second Quarter Ended June 30, 2012 Canada NewsWire
CALGARY, Alberta, Aug. 9, 2012
CALGARY, Alberta, Aug. 9, 2012 /CNW/ - Equal Energy Ltd. ("Equal", "the Company", "We" or "Our") (TSX: EQU) (NYSE: EQU) is pleased to announce its financial and operating results for the second quarter ended June 30, 2012.
Don Klapko, President and Chief Executive Officer commented, "I am pleased to report on a strong operational second quarter and first half 2012 for Equal. So far in 2012 we have delivered some key results."
Increased production Lower debt Lower unit cost structure 100% successful drilling programs A complete re-direction of our portfolio to oil-focused drilling in June 2012 Initiation of our exciting Mississippian co-venture drilling Our accomplishments have been achieved in an environment of deteriorating commodity prices that has persisted for the better part of an entire year. As always, we have applied our fiscal discipline to our activities - working diligently to deploy our spending wisely and adjust our programs to maintain or improve debt levels. Further details on these themes are provided below.
Strong Operational Results
Production was up 9% year on year, averaging well over 10,000 boe per day. Operating and interest expenses were lower on a unit basis as a result of a continued focus on our cost management. Capital spending has approximated cash flow for the first six months of the year as we continue to be disciplined on matching spending with cash flow.
On May 3rd, Equal's Board of Directors announced the initiation of a strategic review process to be managed by a special committee of independent board members with the assistance of Scotiabank as strategic advisors. The board and management are responding to a perceived significant gap between the value of the Company's underlying assets, and the value being recognized in the Company's stock price. As of the date of this report, the strategic review has resulted in a number of proposals being delivered to the Company. The Company will not disclose developments with respect to the strategic review process until the Board of Directors has approved a specific transaction, action plan or otherwise determines that disclosure is necessary or appropriate.