cequence energy ltd Corporate Presentation August 2015 TSX: CQE
Q2 2015 Corporate Highlights Closed a 54 million midstream partnership which will give Cequence access to both major pipeline systems in Alberta while retaining 50% interest in Simonette infrastructure Drilled a Dunvegan oil…
Corporate Profile Trading Symbol TSX: CQE Q2 2015 Production (Boe/d) 9,726 52week trading range 0.49 2.35 Shares outstanding 211 MM Insider ownership 13% FD Market capitalization (1) 126 MM Net Debt June 30, 2015(2) 51.9 MM…
Reserves and Finding Costs solid growth per share in reserves FD&A (/Boe) Reserves 2P Reserve Value 16.00 140 0.7 1200 6 Reserves increased 3 year average 140% since 2010 14.00 118 10.77 per Boe 120 0.6 1,004 113 1000 12.00…
Corporate Production and Cash Costs Production (Boe/d) Cash Cost (/Boe) 16,000 20 Simonette driving growth 18 14,000 3100 BOED 16 12,000 Merger with shutin during 14 Temple Energy Q2 2015 10,000 12 MBoe/d /Boe 8,000…
Corporate Guidance August 2015 Revised Guidance Revised Guidance May, 2015 Aug 13, 2015 Average Production (Boe/d)(1) 11,500 10,200 Capital expenditures, net of dispositions 40 MM 23 MM Operating and transportation costs per…
Simonette Cequences Key Asset Deep Basin Approximately 120 km SE of Grande Prairie Multi zone targets including Montney, Gething, Wilrich, Falher CANADA and Dunvegan USA Simonette is 85% of corporate production, and 95%+ of…
Simonette Facility Joint Venture 1311 Facility 9
Simonette Egress Strategic location near major infrastructure Optionality on both major gas systems in Alberta R2 R1W6 R27 R26 R25 R24 R23W5 BRITISH COLUMBIA ALBERTA Cequence Alliance 3D Seismic Meter Station Coverage T64…
Western Canada gas system maintenance and pricing differentials NGTL maintenance outages continue to put pressure on Alliance CREC Began pricing voluntary shutins CREC price offsets ranged 1.00 to 5.00/GJ to AECO (1.04/GJ…
Alberta Deep Basin Montney An active area R9 R8 R7 R6 R5 R4 R3 R2 R1W6 R26 R25 R24 R23 R22 R21W5 Cequence Simonette lands on T69 Upper Montney trend T68 NUVISTA Industry focusing on T67 High quality low cost liquid T66 rich…
Simonette Montney R2 R1W6 R27 R26 R25W5 10 recent wells performing as expected T63 with last two wells reported IP 30 rates of 6 MMcf/d gas and 32 bbl/mmcf free condensate T62 Upper Costs decreasing due to pad drilling…
Montney Drilling, Completion and Wellsite Equipment Costs Repeatable execution demonstrated Pad drilling times and costs continue to improve 2013/14 well avg: 9.0 MM/well drill and Larger fracs being placed efficiently using ball…
Cequence Montney Gas Well Performance 2014/15 Winter season (June to March) 201415 winter program 10 Gross (9 net) wells from pads Consistent repeatable results Increased frac intensity should deliver improved long term…
Montney Half Cycle Economics Wells are economic at strip prices BASE CASE HALF CYCLE ECONOMICS 7 BCF CASE Budget model IP (MMcf/d) 5.5 7.5 100 IP 30 (MMcf/d) 4.6 6.9 EUR (MBoe) 925 1,290 95 Greater than 20% IRR Raw Gas (Bcf)…
Simonette Dunvegan emerging Dunvegan E Oil Development R26 R25W5 Dunvegan Oil play CQE 711 completed in July 2015 with 31 stage 930 tonne slickwater frac Flow test 516 BOPD over 6 days (40 API) 3 follow up wells before year end…
Hedging 70% of Gas hedged for balance of 2015 Contract Type Volume GJ/d CAD Price 2015 July 1, 2015 to September 30, 2015 Average Gas Swap 30,000 3.36/GJ AECO 2015 October 1, 2015 to December 31, 2015 Average Gas Swap 28,342…
Conclusions Strong consistent operational success moving to Montney pad development Emerging Dunvegan oil development Preserve our strong balance sheet with reduced capex program in 2015 & Midstream partnership Solid hedge…
Appendix Cequence Simonette 1311 Compressor Station 20
Management and Board Management Team Board of Directors Paul Wanklyn President and CEO Don Archibald Chairman Todd Brown VP & COO Peter Bannister Steve Stretch VP Exploration and Chief Geophysicist Rob Cook Dave Gillis VP…
Simonette Deep Basin Stack Dunvegan Wilrich Montney Simonette Upper CURRENT HORIZONTAL TARGET ZONE Falher Bluesky / Gething Simonette Lower POTENTIAL HORIZONTAL TARGET ZONE 22
Multiple Zones with Significant Resource Potential at Simonette CEQUENCE LAND Zone Total Resource Potential/Sec (1) 2,400m Dunvegan Gas 525 BCF Dunvegan Oil 510 MMBBL 2,500m Falher 524 BCF 2,700m Wilrich 524 BCF…
Simonette Falher and Wilrich plays R2 R1W6 R27 R26 R25W5 Falher play 60 P&NG to Base BLUESKY BULLHEAD 55 75 2099-DEC-31 P&NG From Bas e CARDIUM FM To Ba se BLUESKY BULLHEAD 50 50 P&NG to Base BLUESKY BULLHEAD 15 20 16-J AN-1…
Falher Model strong economics with 28 well inventory 14 Working HALF CYCLE ECONOMICS 161806101W6 Model 070606101W6 IP (MMcf/d) 7.8 12 IP 30 (MMcf/d) 6.0 081806101W6 EUR (MBoe) 800 Raw Gas (Bcf) 4.0 3 well avg Condy (MBbl) 110…
Dunvegan Gas Model 22 Working HALF CYCLE ECONOMICS 10026102W6 Model 20 05026102W6 IP (MMcf/d) 10.5 IP 30 (MMcf/d) 9.3 111206102W6/02 18 EUR (MBoe) 1050 021106102W6 Raw Gas (Bcf) 6.0 Condy (MBbl) 60 16 Working Model NGL (MBbl)…
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