Equal Energy completes $37.9 million equity financing

EQU: TSX, NYSE

CALGARY, July 9 /CNW/ - Equal Energy ("Equal", "we", "our") has now completed the previously announced bought deal equity financing for gross proceeds of $37.9 million which is higher than the $35.0 million initially announced as the underwriters have exercised a portion of their over-allotment option. Equal's bought deal financing, announced on June 17, 2010, generated net proceeds of $35.9 million (after commissions and expenses) and was closed on July 9, 2010. The issue was sold by a syndicate of underwriters, led by Wellington West Capital Markets Inc. and including Desjardins Securities Inc., Jennings Capital Inc. and Scotia Capital Inc.

Don Klapko, President and CEO said, "The closing of our equity offering has substantially increased our cash position, further strengthening our balance sheet and providing us greater financial flexibility to accelerate drilling programs or pursue strategic acquisitions which deliver proved, producing reserves."

About Equal Energy Ltd.

Equal is an exploration and production oil and gas company based in Calgary, Alberta, Canada with its United States operations office located in Oklahoma City, Oklahoma. Equal's shares and debentures are listed on the Toronto Stock Exchange under the symbols (EQU, EQU.DB, EQU.DB.A) and Equal's shares are listed on the New York Stock Exchange under the symbol (EQU). The portfolio of oil and gas properties is geographically diversified with producing properties located in Alberta, British Columbia, Saskatchewan and Oklahoma. Production is comprised of approximately 52 percent crude oil and natural gas liquids and 48 percent natural gas. Equal has compiled a multi-year drilling inventory for its properties including its new oil play opportunities in the Cardium in west central Alberta and the Circus prospect in southern Oklahoma.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking statements under applicable securities law. 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, including, without limitation, 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 estimates; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions or 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 news release are made as of the date of this news 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.

All dollar amounts are in Canadian dollars, unless otherwise noted.

SOURCE Equal Energy Ltd.

For further information: For further information: Blaine Boerchers, Chief Financial Officer, (403) 263-0262 or (877) 263-0262, info@equalenergy.ca, www.equalenergy.ca

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Equal Energy Ltd.

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