Equal Energy Ltd. has reached a $230 million deal to be acquired by Tulsa-based Petroflow Energy Corp., the company announced Monday.
The Oklahoma City-based oil and natural gas company has been exploring options since 2012. It rejected another acquisition in March.
Monday's announcement comes after one of Equal's largest shareholders threatened a proxy fight. The shareholder, Montclair Energy LLC, had its offer rejected.
A Montclair representative did not return a call from The Oklahoman seeking comment Monday.
Equal's board unanimously approved the Petroflow deal, but two-thirds of the company's shareholders must ratify it at a special meeting.
The companies began negotiating Nov. 18.
Petroflow will pay $5.43 a share for all of Equal's issued and outstanding common shares. The transaction is worth about $230 million.
The deal represents a 56 percent premium on the closing price of Equal's stock on March 22, the day it announced it was pursuing a strategic alternatives process.
Equal's stock was unchanged Monday at $5.37 a share.
Equal declined comment on the deal Monday.
Equal moved its headquarters to Oklahoma City earlier this year to concentrate on its acreage in central Oklahoma's Hunton formation. The company is focused on liquids-rich natural gas production.
Petroflow was formed in October 2011 by a team of industry veterans intent on using new technology to produce oil from old fields. Company officials could not be reached for comment Monday.