The Energy Report

Equal Energy Ltd. TICKER: EQU:TSX; EQU:NYSE Visit Company Website Equal Energy is a Canadian-based oil and gas exploration and production company with U.S. operations in Oklahoma. Its diverse portfolio includes producing properties in Alberta, BC, Saskatchewan and Oklahoma. In addition to its extensive inventory of drilling locations in the Hunton liquids-rich natural gas play, Equal boasts two new oil plays in the Cardium and Viking formations of central Alberta. Crude oil and natural gas liquids (NGLs) comprise 55% of EQU's production and natural gas accounts for 45%. Equal Energy among NYSE biggest volume gainers (CNBC 4/26/11)

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

China Analyst (1/19/12) "Equal Energy Ltd is one of the top 10 oil/gas production stocks with highest upside. . .its upside is 138.4%."

Alistair Toward, PI Financial (1/5/12) "A mature stable production base coupled with its recently strengthened balance sheet leaves Equal Energy Ltd. better positioned than most in the current environment; we reiterate our BUY rating. . .Equal's first order of business in 2012 will be to drill four vertical Hunton wells in Oklahoma; this program will follow up on some recent success in this area. . .the Odie well was completed just over a month ago and as the well dewaters, it is expected to increase to about 100 boe/d before stabilizing. For a well costing only $1.2MM, this offers a very compelling return."

The Energy Report Interview with Nav Malik (1/3/12) "Equal Energy Ltd. is one of the names that we like. This is a company that has about 9,500 bpd of production. It's in the liquids-rich Hunton play in Oklahoma. It also has an asset base in the Cardium and in the Viking in Canada. So it's in some light oil-focused plays in Canada and a liquids-rich gas play in Oklahoma. The economics are very favorable, and it's been executing very well on its plays.

It just recently sold some noncore assets and applied the proceeds to its debt. It also has potential upside from an area in Oklahoma where it has about 20 sections in the Mississippian formation, which has become a highly attractive light-oil play in the U.S. A lot of the major companies in the U.S. are drilling here. . .I think we'll see some cash flow from Equal's land base in the Mississippian next year. . .It's a good value play with an attractive valuation, a strong set of assets and a very strong management team as well. I think it's doing all the right things. As it continues to execute, it should be reflected in its valuation going forward. So it's a good time to step into the stock, and I think you could certainly see the stock price get closer to our target price over the next year or so." More >

Paul Lee, Scotia Capital (11/16/11) "Equal Energy Ltd. closed its non-core asset sale for $40M and provided preliminary guidance for 2012. . .the second transaction is expected to close Nov. 30 for $9.1M. Proceeds will be used to reduce debt, including the company's $39.1M, 8.25% convertible debentures; at year-end, we estimate debt falls to $165M (from $222M at the end of Q311)."

Nav Malik, Octagon Capital Corporation (11/16/11) "Equal Energy Ltd. announced that it has closed the first of two previously announced non‐core asset sales. . .the first asset sale closed recently for proceeds of $40.3M, while the second sale is scheduled to close on November 30, 2011 and will provide proceeds of $9.1M. . .we believe that the potential development of the Mississippian play on the company's land base may serve to boost cash flow in 2012. . .we are maintaining our Buy recommendation."

• Corporate Presentation (2/15/12)

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