Equal Energy Announces Asset Sale

Equal Energy

announces that it has entered into a definitive agreement to sell several of its Canadian properties for a total cash consideration of $17.4 million, subject to customary adjustments typical of transactions of this type.  The Asset Disposition includes Equal's interests in the Halkirk, Wainwright, Alliance and Clair areas of Alberta.  The Asset Disposition excludes Equal's Cardium assets in the Lochend area and certain royalty interests.  The Asset Disposition is anticipated to be completed on October 12, 2012 and has an effective date of July 1, 2012. The Asset Disposition is the second step in Equal's ongoing strategic review process.  Equal's management and Special Committee of the Board of Directors continue to review opportunities with the Company's portfolio which now consists primarily of the Cardium oil play in the Lochend area of Alberta, certain royalty interests in Canada and the liquids rich natural gas asset in Central Oklahoma. The Company has determined that these Asset Disposition properties provide the least attractive future returns among its portfolio of properties. Drilling prospects on these properties cannot economically compete for capital that is limited annually