Equal Energy to buy up to C$11.99 million convertibles in issuer bid

By Angela McDaniels

Tacoma, Wash., Aug. 4 - Equal Energy Ltd. has received the necessary approvals to make a normal-course issuer bid for its 8.25% convertible unsecured subordinated debentures due 2012 and its 8% convertible unsecured subordinated debentures due 2011, according to a company news release.

The issuer bid will be made through the facilities of the Toronto Stock Exchange and will run from Aug. 6 to Aug. 5, 2011.

The company may acquire up to C$3,964,000 principal amount of the 8.25% convertibles and up to C$8,021,000 principal amount of the 8% convertibles under the bid, in each case representing 10% of the public float of the convertibles.

No more than C$22,000 of 8.25% convertibles and no more than C$26,000 of 8% convertibles can be purchased per day.

The company will acquire convertibles at the market price at the time of purchase, and acquired convertibles will be canceled.

The company said that in the opinion of its board of directors, the convertibles may be, from time to time, undervalued by the market, and the cost of acquiring them under the issuer bid is an expense "prudently incurred by Equal to increase unitholder value."

During the previous normal-course issuer bid that ended May 31, Equal Energy acquired C$32,000 of the 8.25% convertibles at a weighted average price of 80.1 and C$121,000 of the 8% convertibles at a weighted average price of 82.5.

Equal Energy is an exploration and production oil and gas company based in Calgary, Alta.

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