EQU - Equal Energy Provides Update on Strategic Process

Today, after market close, Equal Energy (NYSE:EQU) released a favorable, but overly cryptic press release saying “its strategic alternatives process was successful, resulting in a suitable option for the Company to consider,” and that Equal was pursuing exclusive negotiations with an unnamed party presenting this proposal. (See Equal’s full release at http://www.prnewswire.com/news-releases/equal-energy-provides-update-on-strategic-process-232398441.html )

Equal Energy has also cancelled its appearance at Southwest IDEAS conference in Dallas, previously scheduled for this Wednesday.

As one of Equal’s largest shareholders, Lawndale Capital Management will closely monitor future developments regarding the above-mentioned “suitable option.”

As a reminder, on September 10, 2013, Lawndale publicly updated its views that a September $4.85/share takeover offer from Montclair Energy was too low for the sale of 100% of Equal. Lawndale supported the Equal Energy Board’s decision to reject Montclair’s bid, but called on the company to provide access to updated results and reserves information in order to extract a higher proposal that may more adequately reflect the value of Equal’s substantial assets and prospects.
(See SeekingAlpha.com post at: http://seekingalpha.com/article/1316981-lawndale-capital-management-sends-letter-to-equal-energy-board-regarding-montclair-offer#comment-23132682 )