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Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd.

Cequence Energy Ltd. · Sep 19, 2014 · 30 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. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 1
    cequence energy ltd Peters & Co. Limited Energy Conference Toronto September, 2014
  2. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 2
    Montney Focused Deep Basin Gas Large operated land position in core Montney trend in Alberta Strong balance sheet, exit 2014 debt/cashflow 0.6 times Facilities in place CANADA USA SIMONETTE PROJECT GRANDE PRAIRIE NE…
  3. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 3
    Corporate Profile Trading Symbol TSX: CQE Q2 Production (Boe/d) 12,735 Q2 Cash flow 20.2 MM 52week trading range 1.47 3.21 Shares outstanding 211 MM Insider ownership 13% FD Market capitalization (1) 485 MM June 30, 2014…
  4. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 4
    Recent Highlights Sold 1,600 Boepd nonoperated asset for 141 million in July, will allow the company to focus on Simonette First 3 wells of a six well Montney pad drilled at Simonette, currently waiting on completion expected in…
  5. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 5
    Corporate Guidance 2014 Q1 2015 Average Production (Boe/d)(1) 11,000 13,500 Exit Production (Boe/d) 12,000 15,000 Capital expenditures, prior to dispositions (4) 170 MM 58 MM Capital expenditures, net of dispositions 23 MM 58 MM…
  6. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 6
    Current Simonette Operating Plan Focused development drilling program will drill 15 Montney wells through March 2015 Continue optimizing completions with decreased frac spacing and larger fracs with increased sand volumes using…
  7. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 7
    Alberta Deep Basin Montney R9 R8 R7 R6 R5 R4 R3 R2 R1W6 R26 R25 R24 R23 R22 R21W5 T69 Cequence owns 89 net sections of T68 Montney land at Simonette in the NUVISTA liquids rich, overpressured T67 Montney fairway T66 Numerous…
  8. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 8
    Simonette Montney Drilling Plan through Q1 2015 R1W6 R27 R26 R25W5 Currently drilling CQEs first dedicated 6 well 6 miles pad at 132, three wells successfully drilled to date T62 Second pad at 1226 spud in early September…
  9. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 9
    Simonette Upper Montney Development Plan R1W6 R27 R26 R25W5 Approximately 200 Upper 6 miles locations depending on optimum well length and interwell spacing CURRENT T62 5 year plan will drill HORIZONTAL TARGET approximately…
  10. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 10
    Cequence Montney Gas Producers 18 wells to date 12 BASE CASE CQE 7 BCF High Case HALF CYCLE ECONOMICS HIGH CASE Budget model 11 CQE 5 BCF Base Case IP (MMcf/d) 5.5 7.5 10 IP 30 (MMcf/d) 4.6 6.9 EUR (MBoe) 925 1,290 Raw Gas…
  11. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 11
    Simonette Montney Drilling Curves 0 1000 Recent wells are up to 45% 2000 faster in drilling time (TMD m) Depth 3000 4000 First three Pad wells 5000 6000 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36…
  12. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 12
    Montney Drilling and Completion Costs Long term target of 7.5 million is achievable Montney Horizontal Wells Excluding Pilot wells 8,000 160 Drilling costs have become consistent 7,000 Larger fracs in future may yield further…
  13. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 13
    Cequence Simonette 1311 Compressor Station Cequence Simonette 1311 Compressor Station 14
  14. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 14
    Simonette Project Strategic location near major infrastructure Full scale development has started R2 R1W6 R27 R26 R25 R24 R23W5 BRITISH COLUMBIA ALBERTA Cequence Alliance 3D Seismic Coverage T64 Meter Station SIMONETTE…
  15. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 15
    Simonette Operating Netback YTD 2014 45 42.85 Recycle Ratio on H1 2014 40 netback 2.8 times (1) 35 Natural Gas 30 NETBACK = 31.72 25 /Boe 20 15 11.13 10 Condensate Operating 5 Royalty 0 NGLs Transportation…
  16. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 16
    Simonette Dunvegan, Falher and Wilrich plays R2 R1W6 R27 R26 R25W5 Dunvegan Oil and Gas/Condensate play T63 Wilrich First two CQE wells average 90 day IP of 10.5 MMcf/d with 12 bbls/MMcf condensate Cequence has 13 net…
  17. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 17
    Dunvegan Model most recent well 1112 expected to produce at model rates 22 10026102W6 Working HALF CYCLE ECONOMICS 05026102W6 Model 20 Working Model IP (MMcf/d) 10.5 IP 30 (MMcf/d) 9.3 18 EUR (MBoe) 1050 Raw Gas (Bcf) 6.0 16…
  18. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 18
    Falher Model strong economics with 28 well inventory 14 16186101W6 Working HALF CYCLE ECONOMICS 07066101W6 Model Working Model IP (MMcf/d) 7.8 12 IP 30 (MMcf/d) 6.0 EUR (MBoe) 800 Raw Gas (Bcf) 4.0 Condy (MBbl) 110 10 NGL…
  19. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 19
    Conclusions Simonette Project development drilling program underway to unlock this large resource play Financial strength strong balance sheet with 135 million undrawn bank facility through year end 2014 Team has a proven record of…
  20. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 20
    Appendix Cequence Simonette 1311 Compressor Station 21
  21. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 21
    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…
  22. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 22
    Financial Highlights Q2 2014 Q1 2014 % Change Average Daily Production (Boe/d) 12,735 11,613 10 Funds flow from operations (M) (1) 20,235 23,082 (12) Per share, basic 0.10 0.11 (9) Operating costs per Boe 8.55 7.40 16 G&A…
  23. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 23
    Production and Cash Costs Production (Boe/d) Cash Cost (/Boe) 16,000 20 Includes Ansell 14,000 disposition July 7 close Simonette will 18 drive 44% growth 16 12,000 Merger with to exit in 2015 Temple Energy 14 10,000 12…
  24. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 24
    Hedging Volume Contract Type CAD Price GJ/d Average Gas 3.43/GJ AECO or 2014 July 1, 2014 to December 31, 2014 30,000 Swap 3.90/Mcf Average Gas 3.79/GJ AECO or 2015 January 1, 2015 to March 31, 2015 20,000 Swap 4.32/Mcf…
  25. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 25
    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 11.61 per Boe Reserves increased 1,004(1) 14.00 120 0.6…
  26. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 26
    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…
  27. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 27
    Simonette Deep Basin Stack Dunvegan Wilrich Montney Simonette Upper CURRENT HORIZONTAL TARGET ZONE Falher Bluesky / Gething Simonette Lower POTENTIAL HORIZONTAL TARGET ZONE 28
  28. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 28
    Multiple Zones with Significant Resource Potential at Simonette 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 2,950m…
  29. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 29
    Alberta Deep Basin Montney HZ Drilling Analysis CQE among most efficient drillers 250 Meters drilled per day (m) 200 187 194 150 137 138 118 100 100 50 0 CQE P50 ALL WELLS P50 2012 and older (14 WELLS) 2013 (9…
  30. Peters and Co Limited Energy ConferenceToronto – Cequence Energy Ltd. – slide 30
    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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