--Recommends Shareholders Vote to Approve Acquisition by
Petroflow--
OKLAHOMA CITY, Dec. 31, 2013 /PRNewswire/ - Equal Energy Ltd.
("Equal" or the "Company") (NYSE: EQU) (TSX: EQU) today filed a
preliminary information circular and proxy statement recommending
that Equal shareholders vote FOR an arrangement under which
all of the issued and outstanding common shares of Equal would be
acquired by a wholly-owned subsidiary of Petroflow Energy
Corporation ("Petroflow") for US$5.43
per Equal share.
"The arrangement is the culmination of a
strategic review process which was initiated when Montclair Energy,
LLC made an unsolicited proposal to acquire Equal on February 27, 2013 for US$4.00 per share," said Michael Doyle, Chairman of the Board of
Directors. "Equal formed a special committee of three independent
directors which considered a full range of strategic alternatives
to maximize value for shareholders. These alternatives included
continuing as a going concern, a management buyout, capital
acceleration, a corporate sale, an increased return of capital to
shareholders by a dividend distribution or share buyback, a foreign
asset income trust, a master limited partnership and an acquisition
by an outside bidder."
Equal's Board of Directors unanimously
recommends that the Equal Shareholders read the proxy statement and
vote FOR the arrangement. The date for the vote will be set
when the information circular and proxy statement is finalized
following regulatory review.
Equal has filed with the Securities and Exchange
Commission (the "SEC") a preliminary proxy statement in connection
with the proposed transaction, and once finalized Equal will
furnish the proxy statement to its shareholders. The
preliminary proxy statement contains important information about
the proposed merger and related matters. INVESTORS AND SHAREHOLDERS
ARE URGED TO READ THE PRELIMINARY PROXY STATEMENT, AND, WHEN
AVAILABLE, THE FINAL PROXY STATEMENT CAREFULLY. Investors and
shareholders may obtain free copies of the preliminary proxy
statement and other documents filed with the SEC by Equal through
the website maintained by the SEC at www.sec.gov. In addition,
investors and shareholders may obtain free copies of the
preliminary proxy statement from Equal by telephone at (405)
242-6000, or by mail at: Equal Energy Ltd., 4801 Gailardia Pkwy,
Suite 325, Oklahoma City, OK,
73142 Attn: Investor Relations.
The preliminary proxy statement has also been
filed on the Canadian SEDAR filing system at www.sedar.com, and is
also available on Equal's website at www.equalenergy.ca.
Equal and its directors and executive officers
may be deemed to be participants in the solicitation of proxies
from the shareholders of Equal in connection with the proposed
transaction. Information regarding the interests of these directors
and executive officers in the transaction described herein is
included in the proxy statement described above. Additional
information regarding these directors and executive officers is
also included in Equal's proxy statement for its 2013 Annual and
Special Meeting of Shareholders, which was filed with the SEC on
April 4, 2013. This document is
available free of charge at the SEC's web site at www.sec.gov, and
from Equal by telephone at (405) 242-6000, or by mail at: Equal
Energy Ltd., 4801 Gailardia Pkwy, Suite 325, Oklahoma City, OK, 73142 Attn: Investor
Relations.
Any Equal Shareholder that has questions or
requires more information with regard to the voting of Equal Shares
should contact Kingsdale Shareholder Services Inc. by toll-free
telephone in North America at
1-866-581-1479 or collect call outside North America at 416-867-2272, or by e-mail at
contactus@kingsdaleshareholder.com.
About Equal Energy:
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.
SOURCE Equal Energy Ltd.