2014

Equal Energy Announces Revised Midstream Marketing Contract

OKLAHOMA CITY, May 2, 2014 /PRNewswire/ - Equal Energy Ltd. ("Equal", "the Company", "we" or "our") (NYSE: EQU) (TSX: EQU) today announced that it has signed an amended Gas Purchase and Processing Agreement (the "Agreement") with Scissortail Energy LLC ("Scissortail"), a subsidiary of Kinder Morgan. Equal previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2013 that the Agreement would terminate on April 30, 2014. The primary amendments to the Agreement provide for an extension of its term and a revised pricing formula which will go into effect on August 1, 2014. The impact on Equal's 2014 cash flow is expected to be a reduction of about $1.3 million, based on recent production levels and forward realized pricing of $35.70/bbl for NGL and $4.16/mmbtu for gas.

Equal and Scissortail have been in discussions concerning the Agreement since early February. The Agreement reflects changes in the midstream marketplace over the six years since the original agreement was put into place, especially the competition for gas processing in an environment of increasing gas supply. The Agreement covers over 90% of Equal's current gas production and secures a market for that production and planned future drilling for the next seven years, and as such provides a certain level of assurance for the strength of the Company's future operations.

About Equal Energy Ltd.

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 laws including statements relating to the impact of the Agreement on Equal's 2014 cash flow and the level of assurance it provides for the strength of Equal's future operations. 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.



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