cequence energy ltd Improving Operating Margins April 2016 1 TSX: CQE
Cequence Energy 2016 Improving Operating Margins in tight market Manage overhead costs (2.7 MM/year) Ensure appropriate resources for a lean operation 15% reduction employee compensation Reduce office space & rental costs…
Corporate Profile Trading Symbol TSX: CQE 2015 average production 9,485 boepd 52week trading range 0.24 1.07 Shares outstanding 211 MM Insider ownership 6.5% Market capitalization (1) 75 MM Net debt December 31, 2015(2) 64.5…
Reserves and Finding Costs solid growth per share in reserves FD&A (/Boe) Reserves 2P Reserve Value 16.00 140 Reserves increased 0.7 1200 6 140% since 2010 3 year average 126 14.00 7.55 per Boe 120 118 0.6 1,004 113 1000 5…
Simonette Cequences Key Asset Deep Basin Approximately 120 km SE of Grande Prairie. CANADA Multi zone targets: Montney, Gething, Wilrich, Falher and USA Dunvegan Simonette 85% of Corporate production and 96% of corporate…
Simonette Egress Strategic location near major infrastructure Optionality on both major gas systems in Alberta R2 R1W6 R27 R26 R25 R24 R23W5 Cequence Alliance 120 MMcfd refrigeration plant (50% WI) T64 Meter Station onstream…
Simonette Montney 1633: IP 60 day 1,360 boe/d (6.1 MMcfd, 342 bbl/d condensate) 3,050 m lateral, 70 frac stages, 3,150 tonnes sand CQE 1633 IP60 6.1 mmcfd 18+ sections of analog Western 342 bbls/d condy lands Oiler window…
Montney Drilling & Completion Costs Driving Improved Performance Implemented Montney drilling design changes saving time and providing flexibility Set deeper conductor pipe Simplified build angles to intermediate casing point…
Cequence Montney Gas Well Performance 10 9 CQE 7 BCF High Case 16336127W5 strong performance compared to historical 5 bcf well Producing Daily Gas Rate (MMcf/d) Casing flow CQE 5 BCF Base Case Top quartile Simonette gas…
Simonette/Karr Dunvegan Emerging Light Oil Development Dunvegan Oil play at Simonette is KARR ANALOG analogous to the Karr Oil Pool 9 gross (7.5 net) sections identified with oil development potential in Dunvegan Simonette…
Simonette Dunvegan Oil CQE 711 well flowed 56,000 bbls to February 29th, 2016 CQE 411 well drilled and completed December 2015. Subsequent coil clean out resulted in fishing operation. Well produced 116 bbl/d oil at 36% water cut…
Hedging approximately 50% of 2016 gas production hedged Volume Contract Type CAD Price GJ/d GAS 2016 January 1, 2016 to March 31, 2016 Average Gas Swap 25,000 2.88/GJ AECO 2016 April 1, 2016 to September 30, 2016 Average Gas…
Conclusions Focused on reducing overhead and improving netback margins Longer Montney wells with higher frac intensity enhance the commerciality of future development. Western Simonette lands have significantly higher condensate…
Appendix Cequence Simonette 1311 Compressor Station 15
Management and Board Management Team Board of Directors Todd Brown CEO Don Archibald Chairman Dave Gillis EVP and CFO Peter Bannister James Jackson VP Engineering Rob Cook Dave Robinson VP Exploration and Chief Geologist…
Simonette Deep Basin Stack Dunvegan Wilrich Montney Simonette Upper CURRENT HORIZONTAL TARGET ZONE Falher Bluesky / Gething Simonette Lower POTENTIAL HORIZONTAL TARGET ZONE 17
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…
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