2013 TD March Securities Calgary Energy Conference 2013
Cequence is focused in the Deep Basin of Alberta Control 170,000 net acres in the Deep Basin CANADA USA High quality, operated asset base in multi-zone, liquids-rich gas areas with Montney as primary zone of interest Peace…
Corporate Profile Trading Symbol TSX: CQE Current Production (boe/d) 11,000 52-week trading range 0.88-2.05 Shares outstanding (3) 211 million Insider ownership 12% FD Market capitalization (1) 360 million March 31, 2013 net…
2013 Guidance, May, 2013 2013 Full Year Guidance Production (boe/d)(1) 10,000 10,500 Exit Production Guidance (boe/d) 11,500 Capital expenditures 97 MM Operating costs per boe 6.75 Royalties (% of revenue) 9% Crude oil WTI…
Recent Highlights Simonette winter drilling success results in record current production levels of 11,000 boepd 2013 Proven plus probable reserves increased to 113 mmboe with an NPV 10 value of 1 billion Low cost structure - Q1…
Simonette Infrastructure 3D Seismic Control 220 gross operated Coverage sections (avg. 85% W.I) with excellent land tenure Cequence Alliance Cequence operates its facilities Meter Station Trilogy Plant Capacity 120 mmcf/d CQE…
Multiple Zones with Significant Resource Potential 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 Upper 30-60 BCF…
Simonette Montney Large Scale Resource Play 6 miles Montney Gas/Condensate trend Recent wells continue to exceed Exxon cased well model well rates Up to 150 meters of siltstone to very fine sandstone reservoir Petrobakken cased…
Montney Gas/Condensate Working Model vs. Simonette gas wells CURRENT MODEL 5.0 BCF raw natural gas 12000 RESERVES 2-22-61-27 100 MBbl Condensate 1-31 11000 50 MBbl Propane/Butane 04-04 Newest wells 01-11-061 10000 producing…
Montney Half Cycle Economic 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…
Montney Drilling and Completion Costs 12000 5800 2010 2011 2012 2013 Drilling costs declined 30% 10000 5550 in the past year while increasing length drilled Target 7.5 MM (D,C,TI) Drill & Completion Costs M 8000 5300 Recent…
Montney Drilling Time Comparison 0 Wapiti avg. Cequence winter 2012/13 500 49 days/4305m wells average 500 meters 1000 longer and are 25% faster to CQE 2011 Avg. drill than the previous year 1500 CQE 2012 Avg. Resthaven avg. 42…
Simonette Dunvegan Oil, and Gas/Condensate Play 10-2 well tested above the Current Production Model: model rate at 16.4 mmcf/d IP rate - 4.5 MMCF/D Reserves 4.0 bcf and plus liquids at 2,380 psi FCP 50-150 Bbl/mm NGL and average…
Simonette Falher Trends New Discovery Discovery well at 16-18 KAKWA Falher C Channel had an average first Current Production Model: Pressure: 3950 psi IP rate - 6 MMCF/D month rate of 1,300 (27216 kpa) Reserves - 5 BCF, 20-40…
Simonette Wilrich 6 miles Simonette Wilrich Play 20 net sections currently mapped with 40 potential locations Deeper Montney drilling has confirmed an extension of the existing trend to the south Currently planning one well in…
Simonette Model Economics Working Development Models 3.20/mmbtu (+5% gas escalation) and 90/bbl WTI (flat)(1) Dev. Capital Model Breakeven Net IP Rate Liquids ORGIP ROR NPV Cost/Well Payout Gas Price Potential (mmcf/d) (bbls/mmcf)…
Simonette/Resthaven Horizontal Wells Multiple zones with significant horizontal drilling success Major companies active in Simonette/Resthaven Exxon Encana Conoco CQE land is well- positioned Stacked potential of up to…
Conclusions Simonette Montney results confirm the quality and extent of our resource base Exploration success adds more scope in other formations Infrastructure in place excellent operating cost structure Cequence surrounded by…
Appendix 22
Financial Highlights Q1 2013 Q4 2012 % Change Average Daily Production (BOE/D) 8,822 8,951 (1) Funds flow from operations (M) (1) 10,652 11,603 (8) Per share, basic and diluted 0.05 0.06 (17) Operating costs per BOE 7.24 6.55…
Hedging Approximately 45% of 2013 production hedged at an average 3.65 per mcf Contract Type Volume GJ/d CAD Price Basis January 1, 2013 to December 31, 2013 Gas Swap 2,000 2.84 AECO January 1, 2013 to December 31, 2013 Gas Swap…
Net Asset Value (NAV) December 31, 2012 GLJ April 30, 2013 GLJ Report Report M M Proved + Probable, NPV 10% 798,200 1,052,742 Land (1) 101,000 101,000 Net Debt (45,900) (78,365)(2) NAV 853,300 1,075,377 Shares Outstanding…
Simonette Deep Basin Stack Dunvegan Wilrich Montney 2950 Upper 2975 CURRENT HORIZONAL TARGET ZONE Bluesky / Gething 3000 Falher Middle 3025 Lower 3050 3075 26
www.cequence-energy.com 3100, 525 - 8th Avenue SW Calgary AB T2P 1G1 Contacts: Paul Wanklyn Phone: 403-229-3050 Fax: 403-229-0603 President & CEO pwanklyncequence-energy.com David Gillis Vice President, Finance & CFO…
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