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Msg  22307 of 60663  at  11/2/2012 7:28:44 PM  by


Equal Energy sells cardium assets

 CALGARY, Alberta, Nov. 2, 2012 /CNW/ - Equal Energy Ltd. ("Equal" or
 "the Company") (TSX: EQU) (NYSE: EQU) is pleased to announce that it
 has closed an agreement with another Canadian energy company whereby
 Equal has sold its Lochend Cardium assets for cash consideration of $62
 million, effective October 1st 2012.  The assets sold include current production of approximately 525
 boe/d (93% light oil) based on the most recent 30 day average, related
 infrastructure and undeveloped land.

Equal will use the proceeds from the Lochend sale to fully repay the
 amount outstanding on its credit facility and estimates that it will
 have approximately $10 million in cash after the repayment.  Net debt
 will total approximately $35 million including outstanding convertible
 debentures.  In light of this disposition the Company's banking
 syndicate is reviewing the limit on the Company's credit facility.
 Equal estimates that the credit facility will be in the range of $110
 million secured against the borrowing base of the Central Oklahoma

Equal's last remaining Canadian asset is represented by a royalty stream
 of payments from producing wells in Western Canada.  The Company will
 continue to operate its Central Oklahoma assets consisting of
 approximately 7,800 boe/d of liquids rich natural gas where strong
 historical drilling success has been experienced.  There is an
 established inventory of future drilling locations and a staff of
 experienced people in Oklahoma managing these assets.  Management
 believes that in addition to successful drilling, there is significant
 additional upside from natural gas and NGL commodity price recovery.

The Company is still conducting its Strategic Review process and is
 evaluating proposals for the sale of the remaining royalty assets
 which, if sold, will represent an exit from all Canadian operations.
 Equal's Special Committee of the Board of Directors and management are
 moving to the final step in the Strategic Review Process to finalize
 the go forward strategy for the Company. A Canadian Trust, US Master
 Limited Partnership and an Exploration and Production Corporation are
 all being considered. The make-up of the Board of Directors and
 Executive Management team as well as an overall go forward manpower
 plan will follow the Company structure decision. Equal expects to
 conclude the Strategic Review process shortly after the conclusion of
 the evaluation of the royalty proposals, likely by late November 2012.
 Equal is being advised on the strategic review process by
 Scotiabank. Desjardins Capital Markets is also advising Equal on the
 strategic review process relating to Equal's Canadian assets.

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