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Investor Presentation – Cequence Energy Ltd.

Cequence Energy Ltd. · Nov 1, 2013 · 31 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Presentation – Cequence Energy Ltd. – slide 1
    cequence energy ltd November, 2013
  2. Investor Presentation – Cequence Energy Ltd. – slide 2
    Focus in the Deep Basin of Alberta Cequence is positioned to BRITISH ALBERTA become a significant natural COLUMBIA gas producer in Canada CANADA USA Simonette Project is ready for accelerated development Simonette 70% of…
  3. Investor Presentation – Cequence Energy Ltd. – slide 3
    Corporate Profile Trading Symbol TSX: CQE Q3 Production (Boe/d) 10,300 52week trading range 1.271.97 Shares outstanding 211 million Insider ownership 13% FD Market capitalization (1) 380 million September 30, 2013 net debt…
  4. Investor Presentation – Cequence Energy Ltd. – slide 4
    Recent Highlights Term debt facility with CPPIB will allow increased capital spending in 2013 and 2014 while maintaining 2014 annualized debt to CF at < 2 times 40% production growth and 70% cashflow growth forecast in…
  5. Investor Presentation – Cequence Energy Ltd. – slide 5
    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…
  6. Investor Presentation – Cequence Energy Ltd. – slide 6
    Guidance 40% growth planned for 2014 Preliminary 2014 2013 Guidance Guidance Production (Boe/d) 10,000 (1) 13,50014,000 Exit production guidance (Boe/d) 12,000 15,000 Capital expenditures 110 MM 120 MM Wells drilled 16 (13.8) 16…
  7. Investor Presentation – Cequence Energy Ltd. – slide 7
    Production and Cash Costs Production (Boe/d) Total Cash Costs (/Boe) 16,000 Simonette project 20 will drive 40% 14,000 growth in 2014 18 16 12,000 Merger with Temple Energy 14 10,000 Boe/d 12 /Boe 8,000 10 6,000 8…
  8. Investor Presentation – Cequence Energy Ltd. – slide 8
    5 Year Development Plan Major Assumptions: NO ADDITIONAL EQUITY 143 wells drilled in next five years (80% Montney, 20% other zones) Base Case Montney production model and 8 million cost per well Facilities and…
  9. Investor Presentation – Cequence Energy Ltd. – slide 9
    Simonette Project Infrastructure facilities ready for development rampup R2 R1W6 R27 R26 R25 R24 R23W5 Large land position 3D Seismic 87 net sections of Coverage T64 Montney rights Cequence Alliance Meter Station 156 net…
  10. Investor Presentation – Cequence Energy Ltd. – slide 10
    Netback Table YTD Sept 2013 Corporate Simonette Total Average daily production (Boe/d) 6,634 10,112 Natural gas (MMcf/d) 33.5 52.5 Oil and liquids (Bbls/d) 1,045 1,368 Sales price (/Boe) 28.72 27.94 Royalties (/Boe) (2.29)…
  11. Investor Presentation – Cequence Energy Ltd. – slide 11
    Alberta Montney Competitor Lands R10 R9 R8 R7 R6 R5 R4 R3 R2 R1W6 R26 R25 R24 R23 R22 R21 R20 R19W5 T69 WAPITI Cequence owns 87 net sections of Montney land at Simonette T68 T67 ANTE CREEK Strategically located in the…
  12. Investor Presentation – Cequence Energy Ltd. – slide 12
    Simonette Montney 2013/14 Drilling Plan Proven Large Scale Economic Resource Play R2 R1W6 R27 R26 R25W5 Focus of the next phase : 1) Transition to development style pad drilling 2) Continue to expand the T62 resource base…
  13. Investor Presentation – Cequence Energy Ltd. – slide 13
    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 interwell spacing 400 m. OI 2.5…
  14. Investor Presentation – Cequence Energy Ltd. – slide 14
    Cequence Montney gas producers 14 wells to date 12 BASE CASE HALF CYCLE ECONOMICS HIGH CASE Budget model 11 IP (MMcf/d) 5.5 7.5 IP 30 (MMcf/d) 4.6 6.9 10 EUR (MBoe) 925 1,290 Fall 2013 Well IP rates 2829 stages, SW frac Raw Gas…
  15. Investor Presentation – Cequence Energy Ltd. – slide 15
    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…
  16. Investor Presentation – Cequence Energy Ltd. – slide 16
    Montney Drilling and Completion Costs steady improvement in cost over time Montney Drilling Costs Montney Completion Costs 7 2013 4500 6 450 2010 2011 2012 2010 2011 2012 2013 6 Target = 4000 4.2MM 5 375 Drill & Completion…
  17. Investor Presentation – Cequence Energy Ltd. – slide 17
    Simonette Dunvegan Oil, and Gas/Condensate Play R3 R2 R1W6 R27 R26 R25W5 HALF CYCLE ECONOMICS Model IP (MMcf/d) 4.5 102 well 90 day IP was 13 IP 30 (MMcf/d) 3.9 EUR (MBoe) 810 MMcf/d T62 Raw Gas (BCF) 4.0 Condy (MBbl) 130…
  18. Investor Presentation – Cequence Energy Ltd. – slide 18
    Simonette Falher Play R2 R1W6 R27 R26 R25W5 HALF CYCLE ECONOMICS Model First two CQE wells IP (MMcf/d) 6.5 average 90 day IP of 5.5 IP 30 (MMcf/d) 5.5 MMcf/d with 21 EUR (MBoe) 840 Raw Gas (BCF) 5.0 Bbls/MMcf condensate T62…
  19. Investor Presentation – Cequence Energy Ltd. – slide 19
    Simonette Wilrich Play R2 R1W6 R27 R26 R25 R24W5 HALF CYCLE ECONOMICS Model 20 net sections currently mapped with T63 IP (MMcf/d) 4.5 40 potential locations IP 30 (MMcf/d) 3.9 EUR (MBoe) 690 Raw Gas (BCF) 4.0 Deeper Montney…
  20. Investor Presentation – Cequence Energy Ltd. – slide 20
    Ansell/Edson Wilrich Play Recent industry IP Recent industry IP rate 20 MMcf/d rate 10 MMcf/d Significant industry activity exploiting a new Wilrich CQE 1419 Test resource play 140 km south rate 15 MMcf/d of the Simonette…
  21. Investor Presentation – Cequence Energy Ltd. – slide 21
    Conclusions Simonette Project CQE has defined a high quality resource base with numerous zones proven and ready for exploitation Infrastructure in place excellent operating cost structure Balance sheet strength will allow an…
  22. Investor Presentation – Cequence Energy Ltd. – slide 22
    Appendix Cequence Simonette 1311 Compressor Station 23
  23. Investor Presentation – Cequence Energy Ltd. – slide 23
    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 and CFO Rob Cook Steve Stretch VP Exploration and Chief…
  24. Investor Presentation – Cequence Energy Ltd. – slide 24
    Financial Highlights Q3 2013 Q2 2013 % Change Average Daily Production (Boe/d) 10,292 11,205 (8) Funds flow from operations (M) (1) 10,973 14,831 (26) Per share, basic and diluted 0.05 0.07 (29) Operating costs per Boe 8.29…
  25. Investor Presentation – Cequence Energy Ltd. – slide 25
    Hedging Volume Contract Type CAD Price GJ/d 3.15/GJ AECO or 2013 July 1, 2013 to December 31, 2013 Average Gas Swap 24,500 3.65/Mcf 50% remaining 2013 natural gas 3.46/GJ AECO or 2014 January 1, 2014 to December 31,…
  26. Investor Presentation – Cequence Energy Ltd. – slide 26
    Net Asset Value (NAV) April 30, 2013 GLJ Report M Proved + Probable, NPV 10% 1,052,742 Land (1) 101,000 Net Debt (73,000)(2) NAV 1,084,741 Shares Outstanding (M) 210,900 NAV/Share (/share) 5.12 (1) Internal estimate…
  27. Investor Presentation – Cequence Energy Ltd. – slide 27
    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 12 per Boe Reserves increased doubled in last 3 1052 14.00…
  28. Investor Presentation – Cequence Energy Ltd. – slide 28
    Simonette Deep Basin Stack Dunvegan Wilrich Montney 2950 Upper 2975 CURRENT HORIZONAL TARGET ZONE Falher Bluesky / Gething 3000 Middle 3025 Lower 3050 3075 29
  29. Investor Presentation – Cequence Energy Ltd. – slide 29
    Multiple Zones with Significant Resource Potential 6 miles 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 2,950m Upper 3060 BCF…
  30. Investor Presentation – Cequence Energy Ltd. – slide 30
    Montney Drilling Time Comparison wells without pilot holes 0 02226127 01116127 2013 drilling program is 10096226 achieving significantly 1000 09256127 faster penetration rates 13226126 10166127 Long term cost targets are…
  31. Investor Presentation – Cequence Energy Ltd. – slide 31
    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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