CAPP Scotiabank Investment Symposium cequence energy ltd April 34, 2014 Toronto
Focus in the Deep Basin of Alberta Cequence is positioned to become a BRITISH ALBERTA significant natural gas producer in Canada COLUMBIA Simonette Project is ready for CANADA USA accelerated development Ansell Project has…
Corporate Profile Trading Symbol TSX: CQE Current Production (Boe/d) 12,000 52week trading range 1.42 2.60 Shares outstanding 211 million Insider ownership 13% FD Market capitalization (1) 475 million December 31, 2013 net…
Recent Highlights Yearend 2P reserves grew 24% to 113 Mmboe 2P FD&A was 11.17 per boe, F&D was 10.10 per boe NPV of 2P reserves increased 30% to 1 billion Ansell Wilrich Project has emerged as an exciting new opportunity for…
Guidance 40% growth planned for 2014 Preliminary 2014 2013 Guidance (4) Production (Boe/d) 10,183 (1) 13,50014,000 Exit production (Boe/d) 12,000 15,000 Capital expenditures 111 MM 120 MM Wells drilled 15 (11.75) 16 (14)…
Production and Cash Costs Production (Boe/d) Total Cash Costs (/Boe) (1) 16,000 20 14,000 Simonette and 18 Ansell Projects will 16 12,000 Merger with drive 40% growth Temple Energy in 2014 14 10,000 Boe/d 12 /Boe…
5 Year Development Plan 80% of drilling is assumed to be Montney at Simonette Major Assumptions: NO ADDITIONAL EQUITY 143 wells drilled in next five years (80% Montney, 20% other zones) Base Case Montney production model and…
Simonette Project Infrastructure Expansion completed (1311 capacity increased to 70 mmcfd) R2 R1W6 R27 R26 R25 R24 R23W5 Large land position Cequence Alliance 3D Seismic Coverage 87 net sections of T64 Meter Station Montney…
Alberta Deep Basin Montney Competitor Lands R9 R8 R7 R6 R5 R4 R3 R2 R1W6 R26 R25 R24 R23 R22 R21W5 T69 WAPITI Cequence owns 87 net sections of T68 Montney land at Simonette in the ANTE CREEK liquids rich, overpressured T67…
Alberta Deep Basin Montney HZ First 6 month cumulative gas production 1.8 1.6 1.4 1.2 Average of CQE Wells 540 MMcf Cum Gas (BCF) 1 Average All Wells 0.8 390 MMcf 0.6 0.4 0.2 0 Cequence Wells Industry…
Simonette Montney 2014 Winter Drilling Plan Proven Large Scale Economic Resource Play R2 R1W6 R27 R26 R25W5 Current Focus: 1) Transition to development style pad drilling 1335 2) Continue to expand the T62 Waiting on…
Simonette Montney Development Plan R2 R1W6 R27 R26 R25W5 170250 locations depending on optimum well length 5 year plan will drill approximately 50% of T62 current inventory Current planned inter well spacing 400 m. 2.5 TCF…
Cequence Montney gas producers 15 wells to date BASE CASE HALF CYCLE ECONOMICS HIGH CASE Budget model 12 2013/2014 Montney Wells IP (MMcf/d) 5.5 7.5 11 IP 30 (MMcf/d) 4.6 6.9 100/031806126W5/00 100/092106126W5/02 EUR (MBoe) 925…
Montney Half Cycle Economics 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 steady improvement in cost over time Montney Drilling Costs Montney Completion Costs 7 4500 6 450 6 Target = 4000 4.2MM 5 375 Drill & Completion Costs M Target = 5 3500 2.75MM 4…
Simonette Dunvegan, Falher and Wilrich plays R3 R2 R1W6 R27 R26 R25 R24W5 Dunvegan Oil and Gas/Condensate play 102 well 90 day IP was 13 MMcf/d Wilrich Cequence has 11 net sections along gas and T63 oil trend Wilrich Up to 25…
Ansell/Edson Wilrich Project Expanding land position R20 R19 R18 Pipeline To Talisman R17 R16W5 Edson Gas Plant Two new wells tested, three additional T52 wells to be tested in Q1 PEYTO Cequence now owns 46 sections of land…
Conclusions Simonette Project proven large economic resource play in multiple zones Ansell project exciting drilling program and facilities construction in this new core area Financial strength CQE has a strong balance sheet…
Appendix Cequence Simonette 1311 Compressor Station 20
Canada Pension Plan Investment Board Private Debt Placement 60 million, 5 year unsecured notes issued at par Closed on October 3rd, 2013 Coupon rate 9%, plus 3.0 million warrants at 2.03 Initially used to pay down outstanding…
Management and Board Management Team Board of Directors Paul Wanklyn President and CEO Don Archibald Chairman Howard Crone Executive VP and COO Peter Bannister Dave Gillis VP Finance and CFO Rob Cook Steve Stretch VP…
Financial Highlights Q4 2013 Q3 2013 % Change Average Daily Production (Boe/d) 10,394 10,292 1 Funds flow from operations (M) (1) 14,855 10,973 35 Per share, basic and diluted 0.07 0.05 40 Operating costs per Boe 7.33 8.29…
Netback Table 2013 Corporate Simonette Total Average daily production (Boe/d) 6,711 10,183 Natural gas (MMcf/d) 33.9 52.7 Oil and liquids (Bbls/d) 1,063 1,399 Sales price (/Boe) 29.37 28.42 Royalties (/Boe) (2.14) (2.32)…
Hedging Volume Contract Type CAD Price GJ/d Average Gas 3.45/GJ AECO or 2014 January 1, 2014 to December 31, 2014 30,000 Swap 4.00/Mcf Average Gas 3.79/GJ AECO or 2015 January 1, 2015 to March 31, 2015 20,000 Swap…
Reserves and Finding Costs solid growth per share in reserves and value FD&A (/Boe) Reserves 2P Reserve Value 16.00 140 0.7 1200 6 3 year average Reserve value has 1,036 Reserves increased 14.00 11.61per Boe doubled since…
Simonette Deep Basin Stack Dunvegan Wilrich Montney 2950 Simonette Upper 2975 CURRENT HORIZONAL TARGET ZONE Falher Bluesky / Gething 3000 Simonette Lower 3025 POTENTIAL 3050 HORIZONAL TARGET ZONE 3075…
Multiple Zones with Significant Resource Potential at Simonette 6 miles CEQUENCE LAND Zone Total Resource Potential/Sec (1) 2,400m Dunvegan 525 BCF 2,500m Falher 524 BCF 2,700m Wilrich 524 BCF 2,800m Gething 525 BCF…
Alberta Deep Basin Montney HZ Drilling Analysis CQE among most efficient drillers 300 12000 300 12000 2012 and older 245 wells 2013 63 wells Measured Depth (m) Measured Depth (m) 250 10000 250 10000 CQE P50 All Wells P50 CQE…
www.cequence-energy.com Contacts: 3100, 525 - 8th Avenue SW Calgary AB T2P 1G1 Paul Wanklyn David Gillis President & CEO Vice President, Finance & CFO Phone: 403-229-3050 Fax: 403-229-0603 pwanklyncequenceenergy.com…
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