Equal Energy Concludes Strategic Review Process with Announcement of New Dividend, Sale of Royalty Assets

Equal Energy

announced several important initiatives Tuesday stemming from its recently-concluded strategic review process. Highlights include: An agreement to sell Equal's remaining royalties and fee title lands in Western Canada to Keystone Royalty Corp. for $11.4 million in cash. Initiation of a USD$0.20 per share annual dividend, starting on January 1, 2013. A review of the composition of the board of directors and senior management team. A review of compensation policies. A major reduction in debt as a result of recent asset sales. A focus on the liquids rich, natural gas Hunton property in Central Oklahoma. Consideration of significant future acquisitions. Equal also released details of its 2013 operating and capital budget, including a modest, year-over-year increase in liquids rich, natural gas production from the Central Oklahoma assets, an estimated cash flow of $33 million, and a $36 million capital budget. "Our shareholders and other stakeholders have spoken, and we have listened", Don Klapko, Equal's President said. "The strategic review and the plan we are announcing today greatly strengthen our company. We believe the new dividend is well within our financial resources. Our balance sheet is strong with approximately $150 million of cash and borrowing capacity combined." Mr. Klapko