Annual General Meeting May 21, 2014 cequence energy ltd
Management and Board Management Team Board of Directors Paul Wanklyn-President and CEO Don Archibald - Chairman Howard Crone - Executive VP and COO Peter Bannister Steve Stretch - VP Exploration and Chief Geophysicist Rob…
Focus in the Deep Basin of Alberta Cequence is positioned to become a significant natural gas producer in Canada with two large projects now established: CANADA USA Simonette Project is ready for accelerated development Ansell…
Recent Highlights Q1 cashflow reached a record 23 million on production of 11,600 Boepd Yearend 2P reserves grew 24% to 113 Mmboe with NPV 10% of 1 billion 2P FD&A was 11.17 per boe, F&D was 10.10 per Boe Bank line of credit…
Corporate Profile Trading Symbol TSX: CQE Q1 Production (Boe/d) 11,600 Q1 Cashflow 23 million 52-week trading range 1.42 - 3.15 Shares outstanding 211 million Insider ownership 13% FD Market capitalization (1) 570 million March…
Guidance - 40% growth planned for 2014 Preliminary 2014 2013 Guidance (4) Production (Boe/d) 10,183 (1) 13,500-14,000 Exit production (Boe/d) 12,000 15,000 Capital expenditures 111 MM 120 MM Wells drilled 15 (11.75) 16 (14)…
5 Year Development Plan 80% of drilling is assumed to be Montney at Simonette Major Assumptions: NO ADDITIONAL EQUITY 143 wells drilled in next five years (80% Montney, 20% other zones) Base Case Montney production model and 8…
Cequence Simonette 13-11 Compressor Station Cequence Simonette 13-11 Compressor Station 9
Simonette Project Infrastructure -ready for full scale development Cequence Alliance Cequence operates its facilities at Meter Station Simonette and delivers raw gas to Capacity 120 MMcf/d the Alliance Pipeline for processing at…
Alberta Deep Basin Montney Competitor Lands Cequence owns 87 net sections of Montney land at Simonette in the liquids rich, over-pressured Montney fairway Significant drilling activity on adjacent lands 11
Montney Liquids Three important wells completed in Q1 reinforce transition to development style pad drilling 23 pads currently built with pipeline tie-ins 12 additional pads approved for construction 13-35 Higher liquids yield…
Simonette Montney Development Plan Approximately 200 locations depending on optimum well length 5 year plan will drill approximately 50% of current inventory Current planned inter- well spacing 400 m. 2.3 TCF DPIIP (1) in…
Cequence Montney gas producers - 18 wells to date BASE CASE- HALF CYCLE ECONOMICS HIGH CASE Budget model 12 IP (MMcf/d) 5.5 7.5 11 IP 30 (MMcf/d) 4.6 6.9 EUR (MBoe) 925 1,290 Raw Gas (Bcf) 5.0 7.0 10 Condy (MBbl) 100 150 NGL…
Montney Drilling and Completion Costs -Long term target of 7.5 million is achievable 7 Montney Drilling Costs 4500 6 Montney Completion Costs 900 6 4000 5 750 5 3500 4 600 Completion Costs MM HZ length drilled…
Simonette Dunvegan, Falher and Wilrich plays Dunvegan Oil and Gas/Condensate play 10-2 well 90 day IP was 13 MMcf/d 5-2 well 60 day IP was 9 MMcf/d Cequence has 11 net sections along gas Area average: and oil trend IP rate 4.5…
Ansell Wilrich Project Initial de-risking of project successful Pipeline To Talisman 100 MMcf/d pipeline and 40 MMcf/d Edson Gas Plant Phase 1 compressor/dehydration facility completed in April 2014 7 wells now on stream Cequence…
Conclusions Simonette Project large proven Deep Basin Montney resource play with multiple uphole zones Ansell project Wilrich resource play in an excellent area Financial strength - CQE has a strong balance sheet with 70 million…
Appendix Cequence Simonette 13-11 Compressor Station 19
Canada Pension Plan Investment Board Private Debt Placement 60 million, 5 year unsecured notes issued at par Closed on October 3rd, 2013 Coupon rate 9%, plus 3.0 million warrants at 2.03 Initially used to pay down outstanding…
Financial Highlights Q1 2014 Q4 2013 % Change Average Daily Production (Boe/d) 11,613 10,394 12 Funds flow from operations (M) (1) 23,082 14,855 55 Per share, basic and diluted 0.11 0.07 57 Operating costs per Boe 7.40 7.33…
Production and Cash Costs Production (Boe/d) Total Cash Costs (/Boe) (1) 16,000 20 14,000 Simonette and 18 Ansell Projects will 16 12,000 Merger with drive 40% growth Temple Energy in 2014 14 10,000 Boe/d 12 8,000…
Netback Table Q1 2014 Corporate Simonette Total Average daily production (Boe/d) 8,263 11,612 Natural gas (MMcf/d) 41.7 59.9 Oil and liquids (Bbls/d) 1,308 1,630 Sales price (/Boe) 45.76 44.29 Royalties (/Boe) (4.08) (4.13)…
Hedging Volume Contract Type CAD Price GJ/d Average Gas 3.45/GJ AECO or 2014 January 1, 2014 to December 31, 2014 30,000 Swap 4.00/Mcf Average Gas 3.79/GJ AECO or 2015 January 1, 2015 to March 31, 2015 20,000 Swap 4.40/Mcf…
Reserves and Finding Costs solid growth per share in reserves and value FD&A (/Boe) Reserves 2P Reserve Value 16.00 140 0.7 1200 6 3 year average Reserve value has 1,036 Reserves increased 14.00 11.61per Boe doubled since 2010…
Montney Half Cycle Economics - Sensitivity to Flat Gas Price and Recoverable Gas in Place per Well 20,000 Assumptions: Net NGL Yield: 30 Bbl/MMcf C3+ Capital: 7.5 MM Oil Price: 90/Bbl WTI 15,000 NPV 10% BT (M) 10,000…
Simonette Deep Basin Stack Dunvegan Wilrich Montney 2950 Simonette Upper 2975 CURRENT HORIZONAL TARGET ZONE Falher Bluesky / Gething 3000 Simonette Lower 3025 POTENTIAL 3050 HORIZONAL TARGET ZONE 3075 27
Multiple Zones with Significant Resource Potential at Simonette 6 miles Zone Total Resource Potential/Sec (1) 2,400m Dunvegan 5-25 BCF 2,500m Falher 5-24 BCF 2,700m Wilrich 5-24 BCF 2,800m Gething 5-25 BCF 2,950m…
Alberta Deep Basin - Montney HZ First 6 month cumulative gas production 1.8 1.6 1.4 1.2 Average of CQE Wells 540 MMcf Cum Gas (BCF) 1 Average All Wells 0.8 390 MMcf 0.6 0.4 0.2 0 Cequence Wells Industry…
Alberta Deep Basin Montney HZ Drilling Analysis CQE among most efficient drillers 300 12000 300 12000 2012 and older - 245 wells 2013 63 wells Measured Depth (m) Measured Depth (m) 250 10000 250 10000 CQE P50 All Wells P50…
www.cequence-energy.com Contacts: 3100, 525 - 8th Avenue SW Calgary AB T2P 1G1 Paul Wanklyn David Gillis President & CEO Vice President, Finance & CFO Phone: 403-229-3050 Fax: 403-229-0603 pwanklyncequence-energy.com…
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