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|                                                                                    |   | 2010   |     |   | 2009   |   |
|-----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Loss under Canadian GAAP                                                                |   | $      | (34,536  | )      |   | $      | (41,282 | ) |
| Adjustments for U.S. GAAP                                                               |   |   |     |   |   |   |   |   |
|     Depletion expense (a)                                           |   |   | 53,846   |   |   |   | 72,679 |   |
|     Related income taxes                                            |   |   | (18,018  | )      |   |   | (24,571 | ) |
|     Reverse share-based compensation expenseunder Canadian GAAP (e) |   |   | 3,636    |   |   |   | 3,580 |   |
|     Share-based compensation expense under U.S. GAAP (e)            |   |   | (3,380   | )      |   |   | (2,164 | ) |
|     Accretion of convertible debentures under Canadian GAAP (g)     |   |   | 2,238    |   |   |   | 1,888 |   |
|     Amortization of other assets (g)                                |   |   | (1,242   | )      |   |   | (1,242 | ) |
|     Foreign exchange (f)                                            |   |   | -        |   |   |   | (170 | ) |
|     Future tax adjustments                                          |   |   | (11,886  | )      |   |   | 5,415 |   |
| Net income (loss) under U.S. GAAP                                                       |   | $      | (9,342   | )      |   | $      | 14,133 |   |
|                                                                                    |   |   |     |   |   |   |   |   |
| Other comprehensive income:                                                             |   |   |     |   |   |   |   |   |
|     Cumulative translation adjustment (f)                           |   |   | 4,598    |   |   |   | 31,380 |   |
| Other comprehensive income under U.S. GAAP                                              |   | $      | (4,744   | )      |   | $      | 45,513 |   |
|                                                                                    |   |   |     |   |   |   |   |   |
| Net income (loss) under U.S. GAAP                                                       |   | $      | (9,342   | )      |   | $      | 14,133 |   |
| Deficit, beginning of year, under U.S. GAAP                                             |   |   | (103,691 | )      |   |   | (24,471 | ) |
| Temporary equity adjustment (b) (c)                                                     |   |   | (1,219   | )      |   |   | (93,353 | ) |
| Deficit, end of year, under U.S. GAAP                                                   |   | $      | (114,252 | )      |   | $      | (103,691 | ) |
|                                                                                    |   |   |     |   |   |   |   |   |
|                                                                                    |   |   |     |   |   |   |   |   |
| Weighted average shares for U.S. GAAP (000’s) (1)                                 |   |   |     |   |   |   |   |   |
| Basic                                                                                   |   |   | 24,595   |   |   |   | 21,119 |   |
| Diluted                                                                                 |   |   | 24,595   |   |   |   | 21,611 |   |
|                                                                                    |   |   |     |   |   |   |   |   |
|                                                                                    |   |   |     |   |   |   |   |   |
| Net income (loss) per share under U.S. GAAP (1)                                         |   |   |     |   |   |   |   |   |
| Basic and diluted                                                                       |   | $      | (0.38    | )      |   | $      | 0.67 |   |
|                                                                                    |   |   |     |   |   |   |   |   |

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|                                                                                    |   | 2010          |    |   | 2009      |   |
|-----------------------------------------------------------------------------------------|--------|---------------|---------|--------|-----------|--------|
|                                                                                    |   | Canadian GAAP |    |   | U.S. GAAP |   |   | Canadian GAAP |   |   | U.S. GAAP |   |
| Assets:                                                                                 |   |          |    |   |      |   |   |   |   |   |   |   |
|   Current assets                                                              |   | $             | 29,757  |   |      | $      | 29,570 |   |   | $ | 57,544 |   |   | $ | 57,544 |   |
|   Property, plant and equipment (a)                                           |   |          | 397,997 |   |      |   | 137,423 |   |   |   | 399,237 |   |   |   | 76,738 |   |
|   Long-term receivables                                                       |   |          | -       |   |      |   | - |   |   |   | 5,491 |   |   |   | 5,491 |   |
|   Other assets (g)                                                            |   |          | -       |   |      |   | 1,460 |   |   |   | - |   |   |   | 2,702 |   |
|   Future/deferred income tax (a)                                              |   |          | -       |   |      |   | 78,775 |   |   |   | - |   |   |   | 110,456 |   |
|                                                                                    |   | $             | 427,754 |   |      | $      | 247,228 |   |   | $ | 462,272 |   |   | $ | 252,931 |   |
|                                                                                    |   |          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                                            |   |          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
|   Current liabilities                                                         |   | $             | 44,036  |   |      | $      | 44,036 |   |   | $ | 28,821 |   |   | $ | 30,990 |   |
|   Long-term debt                                                              |   |          | 24,865  |   |      |   | 24,865 |   |   |   | 70,000 |   |   |   | 70,000 |   |
|   Convertible debentures (g)                                                  |   |          | 117,019 |   |      |   | 119,777 |   |   |   | 114,863 |   |   |   | 119,860 |   |
|   Asset retirement obligations                                                |   |          | 21,221  |   |      |   | 21,221 |   |   |   | 21,055 |   |   |   | 21,055 |   |
|   Future/deferred income tax (a)                                              |   |          | 7,101   |   |      |   | - |   |   |   | 8,487 |   |   |   | - |   |
|                                                                                    |   |          | 214,242 |   |      |   | 209,899 |   |   |   | 243,226 |   |   |   | 241,905 |   |
|                                                                                    |   |          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Mezzanine equity (b) (c)                                                                |   |          | -       |   |      |   | - |   |   |   | - |   |   |   | 134,111 |   |
|                                                                                    |   |          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                              |   |          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
|   Shareholders’ capital (b, c, d)                                       |   |          | 259,055 |   |      |   | 173,993 |   |   |   | 674,106 |   |   |   | - |   |
|   Equity component of convertible     debentures (g) |   |          | 3,949   |   |      |   | - |   |   |   | 3,951 |   |   |   | - |   |
|   Contributed surplus (e)                                                     |   |          | 12,321  |   |      |   | 3,534 |   |   |   | 11,064 |   |   |   | - |   |
|   Accumulated other comprehensive income (loss) (f)                           |   |          | (33,624 | )      |      |   | (25,946 | ) |   |   | (22,474 | ) |   |   | (19,394 | ) |
|   Deficit                                                                     |   |          | (28,189 | )      |      |   | (114,252 | ) |   |   | (447,601 | ) |   |   | (103,691 | ) |
|                                                                                    |   |          | 213,512 |   |      |   | 37,329 |   |   |   | 219,046 |   |   |   | (123,085 | ) |
|                                                                                    |   | $             | 427,754 |   |      | $      | 247,228 |   |   | $ | 462,272 |   |   | $ | 252,931 |   |

| (a)   | Under Canadian GAAP, the impairment test limits the capitalized costs of oil and natural gas assets to the discounted estimated future net revenue from proved and probable oil and natural gas reserves using forecast prices plus the costs of unproved properties less impairment.  The discount rate used is a risk free interest rate. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | On May 31, 2010, Enterra Energy Trust (“Enterra” or the “Trust”) completed its conversion from an income trust to a corporation.  Pursuant to the Plan of Arrangement (the “Arrangement”), all outstanding trust units were exchanged for common shares of Equal.  Under both US and Canadian GAAP this exchange was recorded at the carrying value of the trust units outstanding at May 31, 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Under Canadian GAAP, the trust units were considered to be permanent equity and were classified as unitholders' capital.  A U.S. GAAP difference existed due to the redemption feature attached to each trust unit.  Trust units were redeemable at the option of the holder based on the lesser of 90% of the average market trading price of the trust units for the 10 trading days after the date of redemption or the closing market price of the trust units on the date of redemption. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Under Canadian GAAP, pursuant to the Arrangement, Equal reduced shareholders’ capital by $453.9 million, the amount necessary to eliminate the deficit of the Trust at the time of the Arrangement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Under Canadian GAAP, Equal’s equity-based compensation plans are accounted for as equity-settled awards.  Under U.S. GAAP, prior to the conversion from an income trust to a corporation, the redemption feature of the trust units resulted in the equity-based compensation plans being accounted for as liability-settled awards, which are recorded at fair value with changes in fair value included in earnings.  After the conversion from an income trust to a corporation, the share-based compensation plans are accounted for as equity-settled awards. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | Restricted and performance shares |   |   | Options |   |   | Total  |   |
|----------------------------------------------|--------|-----------------------------------|--------|--------|---------|--------|--------|--------|--------|
|                                         |   | 2010                              |   |   | 2009    |   |   | 2010   |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Equity-based compensation  expense |   | $                                 | 2,132  |   |    | $      | 1,941  |   |   | $ | 1,248 |   |   | $ | 223 |   |   | $ | 3,380 |   |   | $ | 2,164 |   |

|                        |   | Number of unvested options (1) |    |   | Weighted average grant date fairvalue (1) |   |   | Number of unvested restricted units(1) |   |   | Weighted average grant date fair value(1) |   |
|-----------------------------|--------|--------------------------------|---------|--------|-------------------------------------------|--------|--------|----------------------------------------|--------|--------|-------------------------------------------|--------|
| Unvested, December 31, 2009 |   |                           | 10,000  |   |                                      | $      | 2.10   |                                   |   |   | 534,774                                   |   |   | $ | 10.41 |   |
| Granted                     |   |                           | 986,708 |   |                                      |   | 2.30   |                                   |   |   | 438,279                                   |   |   |   | 5.24 |   |
| Vested                      |   |                           | (26,667 | )      |                                      |   | 2.31   |                                   |   |   | (395,896                                  | )      |   |   | 8.91 |   |
| Forfeited                   |   |                           | (94,887 | )      |                                      |   | 2.32   |                                   |   |   | (69,354                                   | )      |   |   | 11.09 |   |
| Unvested, December 31, 2010 |   |                           | 875,154 |   |                                      | $      | 2.29   |                                   |   |   | 507,759                                   |   |   | $ | 7.03 |   |

|                                        |   | Number of options(1) |      |   | Weighted average exercise price(1) |   |   | Weighted average contract life |   |   | Aggregate intrinsic value (000’s) |   |
|---------------------------------------------|--------|----------------------|-----------|--------|------------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------------------|--------|
| Options outstanding, January 1, 2010        |   |                 | 235,331   |   |                               | $      | 19.80  |                           |   |   |                                    |   |   |   |
| Options granted                             |   |                 | 986,708   |   |                               |   | 5.91   |                           |   |   |                                    |   |   |   |
| Options forfeited                           |   |                 | (163,887  | )      |                               |   | 12.86  |                           |   |   |                                    |   |   |   |
| Options outstanding, December 31, 2010      |   |                 | 1,058,152 |   |                               | $      | 7.92   |                           |   |   | 2.78                                    |   |   | $ | 421 |   |
| Options expected to vest, December 31, 2010 |   |                 | 888,847   |   |                               | $      | 7.92   |                           |   |   | 2.78                                    |   |   | $ | 362 |   |
| Options exercisable, December 31, 2010      |   |                 | 182,998   |   |                               | $      | 17.71  |                           |   |   | 1.00                                    |   |   | $ | 59 |   |

|                                                 |   | Number of shares(1) |     |   | Weighted average contract life |   |   | Aggregate intrinsic value (000’s) |   |
|------------------------------------------------------|--------|---------------------|----------|--------|--------------------------------|--------|--------|-----------------------------------------|--------|
| Restricted shares outstanding, January 1, 2010       |   |                | 534,730  |   |                           |   |   |                                    |   |   |
| Restricted shares granted                            |   |                | 438,279  |   |                           |   |   |                                    |   |   |
| Restricted shares exercised                          |   |                | (395,896 | )      |                           |   |   |                                    |   |   |
| Restricted shares forfeited                          |   |                | (69,354  | )      |                           |   |   |                                    |   |   |
| Restricted shares outstanding, December 31, 2010     |   |                | 507,759  |   |                           |   | 1.71   |                                    |   | $ | 3,107 |   |
| Restricted units expected to vest, December 31, 2010 |   |                | 426,518  |   |                           |   | 1.71   |                                    |   | $ | 2,610 |   |
| Restricted units exercisable, December 31, 2010      |   |                | -        |   |                           |   | -      |                                    |   | $ | - |   |

| (f)   | Equal’s U.S. oil and natural gas properties are considered to be self sustaining.  Under Canadian GAAP, a portion of the cumulative translation adjustment is recognized in income as the investment in the foreign operations is reduced. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | In November 2006 and April 2007, Equal issued convertible debentures.  Under Canadian GAAP, Equal’s convertible debentures are classified as debt with a portion representing the value associated with the conversion feature being allocated to equity and the issue costs netted against the debt. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | Additional disclosure under U.S. GAAP |
|-----------------|---------------------------------------|

|                               |                            |                          | 2010                                                                                                                                                                                                                                                                                                           | 2009                                             |
|------------------------------------|---------------------------------|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|
| Components of accounts receivable: |                            |                          |                                                                                                                                                                                                                                                                                                           |
|                               | Trade                           |                          | $       9,572                                                                                                                                                                                                                                                               | $       7,650 |
|                               | Accruals                        |                          | 16,163                                                                                                                                                                                                                                                                                                         | 17,171                                           |
|                               | Allowance for doubtful accounts |     (844) |                                                   (9,618) |
|                               |                            |                          | $     24,891                                                                                                                                                                                                                                                                          | $     23,667            |
|                               |                            |                          |                                                                                                                                                                                                                                                                                                           |                                             |
| Components of prepaid expenses:    |                            |                          |                                                                                                                                                                                                                                                                                                           |
|                               | Prepaid expenses                |                          | $       1,236                                                                                                                                                                                                                                                               | $       1,414 |
|                               | Funds on deposit                |                          | 857                                                                                                                                                                                                                                                                                                            | 584                                              |
|                               |                            |                          | $       2,093                                                                                                                                                                                                                                                               | $       1,998 |
|                               |                            |                          |                                                                                                                                                                                                                                                                                                           |                                             |
| Components of accounts payable:    |                            |                          |                                                                                                                                                                                                                                                                                                           |
|                               | Accounts payable                |                          | $     16,271                                                                                                                                                                                                                                                                          | $     18,196            |
|                               | Accrued liabilities             |                          | 15,050                                                                                                                                                                                                                                                                                                         | 9,801                                            |
|                               |                            |                          | $     31,321                                                                                                                                                                                                                                                                          | $     27,997            |
|                               |                            |                          |                                                                                                                                                                                                                                                                                                           |                                             |

| (i)   | As at December 31, 2010 and 2009, Equal did not have any amounts recorded pertaining to uncertain tax positions. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

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