Equal Energy Enters Agreement To Be Bought By Petroflow

Purchased all the issued and outstanding common shares of the Calgary-based company.

Equal Energy Ltd. (NYSE: EQU; TO: EQU) entered into a definitive agreement with Petroflow Energy Corp. and Petroflow Canada Acquisition Corp. for the cash purchase of all the issued and outstanding common shares of Equal.

The total transaction value, including net debt and transaction costs, is US$230 million. The transaction received unanimous approval by Equal's board of directors and will be completed by way of a plan of arrangement under the Business Corporations Act ( Alberta ).

The US$5.43 per share offered represents a 56% premium to the US$3.49 closing price on March 22, 2013, the trading day prior to the company's announcement that it was pursuing a strategic alternatives process. The consideration is also a 23% premium to the US$4.43 closing price on Nov. 18, the trading day prior to Equal's announcement that the strategic alternatives process successfully resulted in exclusive negotiations for a proposed transaction.

Equal's board of directors, with input from the company's advisors and management team, unanimously determined that the arrangement with Petroflow is in the best interest of the company's shareholders. In light of this determination, the board has resolved to recommend that its shareholders vote their shares in favor of the arrangement. All members of management of the company and its board of directors have indicated their intention to vote their shares in favor of the arrangement.

Equal Energy Ltd. is an independent energy company engaged in the acquisition, exploration, development, and production of petroleum and natural gas properties in Canada. The company is headquartered in Calgary.