Equal Energy Announces Sale of Northern Oklahoma Assets

Equal Energy

is pleased to announce that, through one of its wholly owned subsidiaries, it has closed an agreement with Atlas Resource Partners

whereby Equal has sold its interest in its Northern Oklahoma assets located in Grant, Garfield and Alfalfa counties for total cash consideration of US$40 million, effective July 1st 2012.  The assets sold include production of 1,400 barrels of oil equivalent per day ("boe/day") (July 2012 average; 73% natural gas, 25% NGL, 2% oil), related infrastructure and interests in approximately 8,550 acres of Mississippian lands. Don Klapko, President and Chief Executive Officer said, "The sale of the Northern Oklahoma asset is a key part of Equal's strategic direction which will: High grade our Oklahoma business by focusing on the Central Oklahoma area where the liquids content is higher than in the Northern asset, Retain the majority of our Oklahoma assets providing significant upside for our shareholders associated with any recovery of natural gas and NGL prices to more historical levels, Best fit the risk-reward profile of a company our size in an area where we've had greater than 90 percent drilling success