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Oklahoma City-based Equal Energy faces deadline on Petroflow deal

Oklahoma City-based Equal Energy Ltd. is running out of time to complete its acquisition by Tulsa-based Petroflow Energy Corp. The companies must agree to extend a pre-set deadline to make the proposed deal happen.
By Jay F. Marks, Business Writer Published: April 30, 2014

Time is running out on Equal Energy Ltd.’s deal with Petroflow Energy Corp.

Thursday is the deadline established for the $230 million deal that would allow Tulsa-based Petroflow to acquire all outstanding shares of Equal.

Equal, which moved to Oklahoma City from Canada last year, declined to comment Wednesday on the status of the deal, but the company acknowledged last month in its fourth-quarter earnings call that an extension likely would be needed.

Both companies would have to agree to move the deadline beyond Thursday.

Montclair Energy, one of Equal’s largest shareholders, wants the company’s management to reject any bid to extend the deadline on the Petroflow deal. The Alabama-based company has suggested a stock buyback to boost Equal’s value rather than selling the company.

Lawndale Capital Management LLC, a California-based hedge fund with a large stake in Equal, also is opposed to extending the deadline.

Lawndale President Andrew Shapiro said the deadline has prevented Equal from paying any dividends, shopping for a higher bid or considering alternatives to a sale.

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