Montney Focused Deep Basin Gas Large operated land position in core Montney trend in Alberta Strong balance sheet, exit 2014 debt 0.6 CANADA USA times cashflow Facilities in place Current production 10,400 Boepd Plan to reach…
Alberta Deep Basin Montney R9 R8 R7 R6 R5 R4 R3 R2 R1W6 R26 R25 R24 R23 R22 R21W5 T69 WAPITI Cequence owns 89 net sections of T68 Montney land at Simonette in the ANTE CREEK liquids rich, overpressured T67 KARR Montney fairway…
Recent Highlights Sold 1,600 Boepd nonoperated asset for 141 million 135 million senior credit facility undrawn post asset sale Pad style development drilling now started at Simonette Increasing 2014 capital program to 170…
Corporate Profile Trading Symbol TSX: CQE Q1 Production (Boe/d) 11,600 Q1 Cash flow 23 MM 52week trading range 1.42 3.21 Shares outstanding 211 MM Insider ownership 13% FD Market capitalization (1) 625 MM July 2014 pro forma net…
Corporate Guidance 2014 Q1 2015 Average Production (Boe/d) 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…
Cequence Simonette 1311 Compressor Station Cequence Simonette 1311 Compressor Station 8
Simonette Project Infrastructure Ready for full scale development R2 R1W6 R27 R26 R25 R24 R23W5 3D Seismic Cequence Alliance Coverage Cequence owns and operates its T64 Meter Station facilities at Simonette Capacity 120…
Simonette Montney Drilling Plan through to Q1 2015 R1W6 R27 R26 R25W5 Currently drilling first pad 6 miles at 132, second pad at 12 26 to spud in August 35 pad sites built or T62 approved Gas condensate yields have increased…
Simonette Upper Montney Development Plan R1W6 R27 R26 R25W5 Approximately 200 Upper 6 miles locations depending on optimum well length 5 year plan will drill CURRENT T62 approximately 50% of HORIZONTAL TARGET current…
Cequence Montney gas producers 19 wells to date BASE CASE HALF CYCLE ECONOMICS HIGH CASE Budget model 12 IP (MMcf/d) 5.5 7.5 CQE 7 BCF High Case 11 IP 30 (MMcf/d) 4.6 6.9 EUR (MBoe) 925 1,290 CQE 5 BCF Base Case Raw Gas (Bcf)…
Montney Drilling and Completion Costs Long term target of 7.5 million is achievable 8,000 80 Total /m HZ Total /m HZ includes pilot hole 7,000 70 of frac stages 6,000 60 5,000 50 of frac stages Total /m HZ 4,000…
Simonette Dunvegan, Falher and Wilrich plays R2 R1W6 R27 R26 R25W5 Dunvegan Oil and Gas/Condensate play T63 Wilrich 102 well 90 day IP was 13 MMcf/d 52 well 60 day IP was 9 MMcf/d Cequence has 11 net potential T62 sections…
Dunvegan Model Working HALF CYCLE ECONOMICS 22 Model 10026102W6 IP (MMcf/d) 10.5 20 05026102W6 IP 30 (MMcf/d) 9.3 EUR (MBoe) 1050 CQE Working Model Raw Gas (Bcf) 6.0 18 Condy (MBbl) 60 NGL (MBbl) 70 16 Daily Gas Rate…
Falher Model Working HALF CYCLE ECONOMICS 14 Model 16186101W6 IP (MMcf/d) 7.8 07066101W6 IP 30 (MMcf/d) 6.0 12 EUR (MBoe) 800 CQE Working Model Raw Gas (Bcf) 4.0 Condy (MBbl) 110 NGL (MBbl) 60 Daily Gas Rate (MMcf/d) 10…
Conclusions Simonette Project start of significant development drilling program 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…
Appendix Cequence Simonette 1311 Compressor Station 18
Management and Board Management Team Board of Directors Paul Wanklyn President and CEO Don Archibald Chairman Howard Crone Executive VP and COO Peter Bannister Steve Stretch VP Exploration and Chief Geophysicist Rob Cook Dave…
Financial Highlights Q1 2014 Q4 2013 % Change Average Daily Production (Boe/d) 11,613 10,394 12 Funds flow from operations (M) (1) 23,082 14,855 55 Per share, basic and diluted 0.11 0.07 57 Operating costs per Boe 7.40 7.33…
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…
Netback Table Q1 2014 Corporate Simonette Total Average daily production (Boe/d) 8,263 11,612 Natural gas (MMcf/d) 41.7 59.9 Oil and liquids (Bbls/d) 1,308 1,630 Sales price (/Boe) 45.76 44.29 Royalties (/Boe) (4.08) (4.13)…
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…
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…
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…
Simonette Deep Basin Stack Dunvegan Wilrich Montney Simonette Upper CURRENT HORIZONTAL TARGET ZONE Falher Bluesky / Gething Simonette Lower POTENTIAL HORIZONTAL TARGET ZONE 26
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…
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…
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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