OKLAHOMA CITY, Aug. 15, 2013 /PRNewswire/ – Equal Energy Ltd. (NYSE:EQU)
(TSX:EQU.TO) would like to confirm that following the close of markets
on August 14, 2013 it received a non-binding expression of interest
(the “New Proposal”) from Montclair Energy, LLC (“Montclair”). The New
Proposal became publicly available as a result of the amended Schedule
13D filing made this morning by certain affiliates of Montclair. The
New Proposal revises Montclair’s previous unsolicited and conditional
expression of interest dated February 27, 2013, which is discussed in
our press release of March 25, 2013 (the “March Release”). Consistent
with our process disclosed in the March Release, the Special Committee
of Equal, along with its financial and legal advisors, is considering
the New Proposal in a deliberate and thoughtful manner with a view to
the best interests of Equal. There is no assurance that the New
Proposal will result in a definitive agreement or will be implemented.

About Equal Energy:

Equal Energy is an oil and gas exploration and production company based
in Oklahoma City, Oklahoma. Our oil and gas assets are centered on the
Hunton liquids-rich natural gas property in Oklahoma. Our shares are
listed on the New York Stock Exchange and The Toronto Stock Exchange
under the symbol (EQU). Our convertible debentures are listed on the
Toronto Stock Exchange under the symbols EQU.DB.B.

Forward-looking Statements:

Certain information in this press release constitutes forward-looking
statements under applicable securities law including announcements
surrounding the strategic alternatives reviews and the New Proposal.
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 and future production
estimates; environmental risks; competition; incorrect assessment of
the value of acquisitions; failure to realize the anticipated benefits
of 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 press release are made as of the date of this press
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.