Conversion to Corporation

Effective June 1, 2010, Enterra Energy Trust was converted to a corporation called Equal Energy Ltd. on the basis of one share of Equal Energy for every three units of Enterra held. The conversion was deemed to be a tax deferred rollover. If a disposition of shares of the corporation involved units purchased as the predecessor income trust, then Canada Revenue Agency will require an ACB calculation if a portion of the distribution received from the trust was deemed to have been return of capital.