CALGARY, June 26, 2018 /CNW/ - Cequence Energy Ltd. (TSX:
CQE) ("Cequence" or the "Company") is pleased to provide an update
on its recent operational activities. Cequence continues to see
strong production from its Dunvegan oil play including the 3 gross (2
net) wells that came on production in April. For the month of
May, the 3 gross wells averaged a combined 601 bbl per operating
day per well with all three wells above the Company's internal
model of 300 bbls oil per day per well.
Total corporate oil and liquids field estimates for the week
ending June 24, 2018, was 2,300 bbl/d
or 34% of the Company's 6,850 boe/d for the same period. The
strong liquids production during the period was achieved in spite
of Cequence's 50% well located at 11-14 being off production since
late May for temporary operational issues. The 11-14 well is
expected to be back online in July.
The Company's 100% well located at 15-4 has produced
approximately 46,000 bbls of oil in 57 operating days and is
currently flowing at approximately 1,200 bbl/d and 2 mmcf/d of
natural gas. To achieve more consistent Dunvegan operating times in June, the Company
has successfully begun to deliver a portion of the Dunvegan fluid volumes through its joint 50%
infrastructure and facilities it has with KANATA Energy Group. This joint
infrastructure will continue to be an integral part of the future
development of the Company's Dunvegan oil inventory.
The Company has identified an additional 26.5 net Dunvegan drilling locations on its land.
About Cequence
Cequence is a publicly traded Canadian energy company involved
in the acquisition, exploitation, exploration, development
and production of natural gas and crude oil in western Canada. Further information about Cequence may
be found in its continuous disclosure documents filed with Canadian
securities regulators at www.sedar.com.
Forward-looking Statements or Information
Certain statements included in this press release constitute
forward-looking statements or forward-looking information under
applicable securities legislation. Such forward-looking statements
or information are provided for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as
making investment decisions. Forward-looking statements or
information typically contain statements with words such as
"anticipate", "believe", "expect", "plan", "intend", "estimate",
"propose", "project" or similar words suggesting future outcomes or
statements regarding an outlook. Forward-looking statements or
information in this press release may include, but are not limited
to, statements relating to the growth prospects of the Dunvegan locations, the future development of
Dunvegan oil inventory, the
expected reactivation of the 11-4 well, and operational activities.
Forward-looking statements or information are based on a number of
factors and assumptions which have been used to develop such
statements and information but which may prove to be incorrect.
Although the Company believes that the expectations reflected in
such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because the Company can give no assurance that such expectations
will prove to be correct. In addition to other factors and
assumptions which may be identified in this press release,
assumptions have been made regarding, among other things: the
impact of increasing competition; the timely receipt of any
required regulatory approvals; the ability of the Company to obtain
qualified staff, equipment and services in a timely and cost
efficient manner; the ability of the operator of the projects which
the Company has an interest in to operate the field in a safe,
efficient and effective manner; the ability of the Company to
obtain financing on acceptable terms; field production rates and
decline rates; the ability to replace and expand oil and natural
gas reserves through acquisition, development of exploration; the
timing and costs of pipeline, storage and facility construction and
expansion and the ability of the Company to secure adequate product
transportation; future oil and natural gas prices; currency,
exchange and interest rates; the regulatory framework regarding
royalties, taxes and environmental matters; and the ability of the
Company to successfully market its oil and natural gas products.
Readers are cautioned that the foregoing list is not exhaustive of
all factors and assumptions which have been used.
Forward-looking statements or information are based on
current expectations, estimates and projections that involve a
number of risks and uncertainties which could cause actual results
to differ materially from those anticipated by the Company and
described in the forward-looking statements or information. These
risks and uncertainties may cause actual results to differ
materially from the forward-looking statements or information. The
material risk factors affecting the Company and its business are
contained in the Company's Annual Information Form which is
available on SEDAR at www.sedar.com.
The forward-looking statements or information contained in
this press release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise unless required by
applicable securities laws. The forward-looking statements or
information contained in this press release are expressly qualified
by this cautionary statement.
Advisories
Boe Conversions: Barrel of oil equivalent ("boe") amounts
have been calculated by using the conversion ratio of six thousand
cubic feet (6 Mcf) of natural gas to one barrel of oil (1 bbl). Boe
amounts may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf to 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
Given that the value ratio based on the current price of oil as
compared to natural gas is significantly different from the energy
equivalent of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
The TSX has neither approved nor disapproved the contents of
this news release.
SOURCE Cequence Energy Ltd.