cequence energy ltd Peters & Co Limited September 2015 Toronto Energy Conference 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 Successful Dunvegan oil…
Corporate Profile Trading Symbol TSX: CQE Q2 2015 Production (Boe/d) 9,726 52week trading range 0.37 2.17 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) (1) 16,000 20 Simonette driving growth 18 14,000 3100 BOED shut 16 12,000 Merger with in during Q2 14 Temple Energy 2015 10,000 12 MBoe/d /Boe…
Corporate Guidance August 2015 Guidance Aug 13, 2015 Average Production (Boe/d)(1) 10,200 Capital expenditures, net of dispositions 23 MM Operating and transportation costs per Boe 10.20 G&A costs per Boe 2.50 Royalties (%…
Simonette Cequences Key Asset Deep Basin Approximately 120 km SE of Grande Prairie Multi zone targets including Montney, Gething, Wilrich, Falher and Dunvegan CANADA 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 March 2015 Alliance CREC pricing began voluntary shutins CREC price offsets range 1.00 to 5.00/GJ to…
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 over T69 pressured Montney trend T68 NUVISTA Industry focusing on T67 High quality low cost liquid…
Simonette Montney R2 R1W6 R27 R26 R25W5 10 recent wells performing as expected T63 with last two wells IP 30 rates of 6 MMcf/d gas and 32 bbl/mmcf free condensate Costs decreasing due to T62 Upper pad drilling efficiency…
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 coupled with longer wells should deliver…
Montney Half Cycle Economics Increased lateral length and well optimization will drive higher type curve and economic performance 100 95 Greater than 20% IRR 90 85 80 75 70 WTI (USD /Bbl) 65 60 55 50 45 Greater…
Simonette/Karr Dunvegan New Light Oil Development R4 R3 R2 R1W6 R27 R26 R25 R24 R23W5 Dunvegan Oil play at Simonette is analogous to the Karr Oil Pool KARR ANALOG KARR SIMONETTE T66 AVERAGE NET PAY 9m 9m CQE 711 well (50% WI)…
Simonette Dunvegan Oil Economics CQE 711 daily production IP30 618 boe/d R26 R25W5 Karr 1 mile Slickwater model (boe/d) 23 wells Karr Average (boe/d) 66 wells T62 CQE HZ 711 Type Log GAS GATHERING CQE Land…
Hedging 70% of gas hedged for balance of 2015 Volume Contract Type CAD Price GJ/d 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…
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…
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 23
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 161806101W6 070606101W6 12 081806101W6 3 well avg 10 Working Model Daily Gas Rate (MMcf/d) 8 6 4 2 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Months on…
Dunvegan Gas Model 22 10026102W6 20 05026102W6 111206102W6/02 18 021106102W6 16 Working Model Daily Gas Rate (MMcf/d) 14 12 10 8 6 4 2 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Months on Production Assumes…
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