Petroflow agrees to make offer for Equal Energy's convertibles

By Jennifer Chiou

New York, Dec. 10 - Petroflow Energy Corp. has agreed to make an offer to purchase all of Equal Energy Ltd.'s C$45 million of convertible debentures within 30 days of the effective date of Petroflow's acquisition of all of Equal's outstanding common shares, according to an 8-K filing with the Securities and Exchange Commission.

The company will pay 101 plus accrued interest to holders of the convertibles.

On Dec. 6, Equal Energy, Petroflow Energy and Petroflow Canada Acquisition Corp. entered into an arrangement agreement, under which Petroflow will acquire Equal's shares for $5.43 per share in cash, without interest, through subsidiary Petroflow Canada Acquisition.

The filing stated that the aggregate purchase price for the outstanding common shares, including restricted stock, and options expected to vest is about $230 million.

Equal Energy is an oil and gas exploration and production company based in Oklahoma City. Petroflow Energy is a Calgary, Alta.-based oil and natural gas company.

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