PROVING POTENTIAL Annual General Meeting May 22, 2012
Corporate Profile Trading Symbol TSX: CQE Current production 8,900 boepd(3) 52-week trading range 1.20-4.70 Shares outstanding FD 176 million Insider ownership 12% FD Market capitalization (1) 227 million March 31, 2012 net debt…
Recent highlights Established a significant discovery in the Montney formation at Simonette De-risked 36 net sections out of 70 net with 10 Montney horizontal wells CQE internal estimate of net potential on de-risked Montney lands is…
2012 Strategy Evaluate our Deep Basin resource base and target highest liquid content opportunities while preserving key lands Carefully expand our land base by capturing similar opportunities Protect our balance sheet in current…
Corporate Production and Cash Costs 9,833 9,125 9,464 8,879 8,185 7,485 boe/d /boe 4,619 3,197 2,444 2010 2011 2012 5
Cash Costs per Boe Q1 2012 30 25 20 15 /boe 10 5 0 *Cash costs consist of operating expense, transportation costs, general and administrative expense and interest expense
FOCUSED ON THE DEEP BASIN CANADA USA Peace River Arch/NE BC 2012 Estimate: 3,300 boe/d PEACE RIVER SIMONETTE GRANDE PRAIRIE Deep Basin: Simonette-Kaybob 2012 Estimate: 6,500 boe/d EDMONTON 7
Simonette: A Concentrated Land Base 6 miles Control 220 gross operated sections (avg. 75% W.I.) including new farm-in Extensive 3D seismic coverage Cequence Alliance critical to evaluation and Meter Station Trilogy Plant…
Stacked Zones Expose Significant Resources Zone Total Resource Net unbooked Potential/Sec Inventory 2,200m Dunvegan 5-10 BCF 20-30 2,500m Falher/ 5-24 BCF 110-170 2,700m Wilrich 2,800m Gething 5-25 BCF 200 2,950m…
Gas/Condensate trend continues to deliver excellent results in Q1, 2012 Recent HZ wells with average test rates of 9.8 mmcf/d plus liquids Drilling to date has now de-risked 36 net sections (out of 50 net potential) in the gas…
Montney Gas/Condensate Wells CQE Working Model vs. Well Results 15000 PRODUCTION MODEL 23% NGL 14000 13000 4.5 BCF raw plus 180 MBbl NGLS (C3+) 12000 11000 10000 Producing Daily Gas Rate (mcf/d) 9000 8000 7000 42% 6000…
Simonette Montney Development Model Delivers Strong Netbacks Excellent Economics AECO 2.00/mmbtu 3.00/mmbtu 4.00/mmbtu WTI 100/bbl 100/bbl 100/bbl NGL Yield 45 bbls/mmcf 45 bbls/mmcf 45 bbls/mmcf Per BOE Per BOE Per BOE…
North American Gas Play Economics 13
Simonette Wilrich/Falher Liquids-Rich Resource Plays Falher Play Plan to drill first horizontal commitment well in Q3, 2012 Expect high liquids yield natural gas and over-pressuring Analogous to the prolific Musreau and Kakwa…
Wilrich/Falher Gas/Condensate Wells CQE Horizontal Model vs. Well Results 12% PRODUCTION MODEL NGL 10000 9000 4.0 BCF raw plus 80 MBbl NGLS (C3+) 8000 Producing Daily Gas Rate (mcf/d) 7000 6000 5000 4000 3000…
Dunvegan Oil and Gas/Condensate Play Potential new oil discovery at 14-23 (50% WI) Horizontal farm-in well to be drilled in the high New Simonette oil pool 42 API pressure Resthaven pool Resthaven gas/condensate Oil prone in…
Simonette Model Economics CQE Working Development Models 4.00/mmbtu and 100/bbl WTI (1) Dev. Capital Model Breakeven IP Rate Liquids ORGIP ROR NPV Cost/Well (2) Payout Gas Price (mmcf/d) (bbls/mmcf) (BCF) (MM) (MM) (months)…
Simonette-Resthaven: A Great Postal Code Horizontal Well Activity Montney Activity Karr North Simonette throughout area Kakwa / 7 Generations Apache-AOSC Musreau Montney Oil Pool Montney Oil Pool Paramount Cequence is well Falher…
Appendix 20
Simonette Deep Basin Stack Dunvegan Wilrich Montney Bluesky / Gething Falher More than 100 BCF/section of resource potential 21
Land & Net Asset Value (NAV) December 31, 2011 GLJ Report Escalated Strip Pricing(1) M M Proved + Probable, NPV 10% 715,750 450,887 Land (2) 50,880 50,880 December 31, 2011 Net Debt(3) (51,442) (51,442) NAV 715,188…
Financial Highlights Q1 2012 Q4 2011 % Change Average Daily Production (BOE/D) 9,464 8,879 7 Funds flow from operations (M) (1) 6,755 10,002 (32) Per share, basic and diluted 0.04 0.06 (33) Operating costs per BOE 7.97 8.60 (7)…
www.cequence-energy.com 3100, 525 - 8th Avenue SW Calgary AB T2P 1G1 Phone: 403-229-3050 Fax: 403-229-0603 Contacts: Paul Wanklyn President & CEO pwanklyncequence-energy.com David Gillis Vice President, Finance & CFO…
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