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Equity is an independent oil and gas exploration and production company, currently conducting its business in eight states and two Canadian provinces. Equity is also a 50% shareholder in Symskaya Exploration, Incorporated (Symskaya) which is licensed to operate in Russia. Headquartered in Salt Lake City, Utah, the Company also maintains an exploration office in Denver, Colorado, and field offices in Cody, Wyoming and Vernal, Utah.
The Company produces crude oil and natural gas. During the last five years, revenues from the sales of these products have accounted for more than 90% of the total revenues of the Company, while remaining revenues have come from other sources, including interest income on invested funds, operating overhead reimbursements, and the sales of various developed and undeveloped properties.
The majority of the Company?s oil production occurs in Colorado and other Rocky mountain states, and the Canadian provinces of Alberta and British Columbia. Crude oil production is sold under short-term contracts at current posted prices for each geographic area, less applicable quality or transportation tariffs, plus negotiated bonuses. Prices are set by oil purchasers, and, while their methods of determining prices are not within the control of the Company, it is assumed they are influenced by regional, national and international factors relating to oil supply and demand.
The bulk of the Company?s natural gas production occurs in Wyoming, California and the Canadian province of Alberta. During 1999, the Company sold all of its gas producing properties that were located in Texas. While the areas where the Company has its major gas reserves are characterized by large reserves of other companies, the Company has historically been able to sell all of its productive capacity, and expects to be able to continue to do so in the near future.
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