CALGARY, Alberta, Oct. 15, 2012 /PRNewswire/ – Equal Energy Ltd. (the “Company”
or “Equal”) (TSX: EQU): (NYSE: EQU) is pleased to confirm that the sale
of Halkirk/Alliance/Wainwright/Clair Assets (“HAWC”) and substantially
all remaining Canadian non-producing assets has closed on October 15,
2012. Cash proceeds were $15.4 million compared to $17.4 million
pursuant to the Company’s press release on October 1, 2012 due to
adjustments agreed to by the Company based on final due diligence
conducted by the purchaser. Equal will apply the proceeds to reduce
the amount drawn on its bank credit facility to approximately $55
million. Equal’s bank lenders are currently reviewing the limit on the
bank credit facility subsequent to the sale of the Company’s Northern
Oklahoma assets in September and the Canadian asset sale that closed
today.

The HAWC disposition is the second step in Equal’s ongoing strategic
review process. Management and the special committee of the board of
directors continue to review opportunities for the Company’s remaining
assets. The Company’s portfolio of assets now consists of the liquids
rich natural gas asset in Central Oklahoma, the Cardium light oil play
in the Lochend area of Alberta and certain royalty interests in
Canada. Adjusting for this sale and the previously announced sale of
Northern Oklahoma, Equal’s current corporate production is
approximately 8,300 boe/day consisting of 48% natural gas, 45% NGL’s
and 7% oil.

About Equal Energy Ltd.
Equal is an exploration and production oil and gas company based in
Calgary, Alberta, Canada with its United States operations office
located in Oklahoma City, Oklahoma. Equal’s shares and convertible
debentures are listed on the Toronto Stock Exchange under the symbols
(EQU, EQU.DB.B) and Equal’s shares are listed on the New York Stock
Exchange under the symbol (EQU). The portfolio of oil and gas
properties is geographically diversified with producing properties
located in Alberta and Oklahoma. Equal has compiled a multi-year
drilling inventory for its properties including its oil opportunity in
the Lochend Cardium play of Alberta in addition to its extensive
inventory of drilling locations in the Hunton liquids-rich, natural gas
play in Oklahoma.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking
statements under applicable securities law including the timing or
certainty of any further action in the Company’s strategic review
process, the repayment of the bank credit facility and the outcome of
the bank lenders review of the limit on the bank credit facility. Any
statements that are contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by terms
such as “may,” “should,” “anticipate,” “expects,” “seeks” and similar
expressions.

Forward-looking statements necessarily involve known and unknown risks,
such as risks associated with oil and gas production; marketing and
transportation; loss of markets; volatility of commodity prices;
currency and interest rate fluctuations; imprecision of reserve
estimates; environmental risks; competition; incorrect assessment of
the value of acquisitions; failure to realize the anticipated benefits
of acquisitions or dispositions; inability to access sufficient capital
from internal and external sources; changes in legislation, including
but not limited to income tax, environmental laws and regulatory
matters. Readers are cautioned that the foregoing list of factors is
not exhaustive.

Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ
materially from those anticipated forward-looking statements contained
in this press release are expressly qualified by this cautionary
statement.

Additional information on these and other factors that could affect
Equal’s operations or financial results are included in Equal’s reports
on file with Canadian and U.S. securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com), the SEC’s website (www.sec.gov), Equal’s website (www.equalenergy.ca) or by contacting Equal. Furthermore, the forward looking statements
contained in this news release are made as of the date of this news
release, and Equal does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements, whether as
a result of new information, future events or otherwise, except as
expressly required by securities law.

SOURCE Equal Energy Ltd.