Cequence Energy Announces Operations Update and Executive Appointment
February 12 2019 - 6:00PM
Cequence Energy Ltd. ("Cequence" or the "Company") (TSX: CQE) is
pleased to provide an operational update and announce an Executive
Management change at the Company.
Operations Update:
Field production for the 2018 calendar year
averaged approximately 6,490 boe/d (23% liquids), with January 2019
field estimates averaging 5,900 boe/d (27% liquids). The
Company’s recent two gross, two net Dunvegan oil wells that were
drilled and completed in the fourth quarter of 2018 were brought on
production December 28, 2018. The wells were set up with downhole
pumps and tied into permanent facilities on January 10, 2019. The
below table represents the field estimated production rates for
each well for the month of January, 2019.
|
|
January 2019 Field Estimates
(gross) |
Well UWI |
CQE Interest % |
Oil (bbl/d) |
Water (bbl/d) |
Gas (mcf/d) |
BS&W (%) |
10-04-62-26W5 |
100 |
% |
266 |
127 |
650 |
32 |
% |
16-02-62-26W5 |
100 |
% |
225 |
95 |
372 |
30 |
% |
|
|
|
|
|
|
|
|
Water production associated with the wells is
still well below fracture treatment load recovery. Management is
encouraged by the early production results from the wells and
expects the BS&W volumes to decrease to under 5% with time.
Cequence continues to optimize the pumping system to increase total
rates.
2019 Guidance
With the current continued volatility in Western
Canadian commodity prices Cequence plans to release its 2019
guidance on March 12th in conjunction with its year end 2018
results. Cequence will be stewarding toward a budget that has the
Company continuing to refine costs and spending within cash
flow.
Executive Team Update
Cequence is pleased to announce that Allan
Mowbray, CPA, CA, will be joining the Company as Chief Financial
Officer effective March 15, 2019. Mr. Mowbray has over 25 years of
public accounting, financial reporting and leadership experience
and was most recently Chief Financial Officer at a publicly traded
Canadian oilfield services company. Mr. Mowbray’s background and
experience will be a significant asset to Cequence as the
organization continues to pursue various strategies for the benefit
of the Company and its stakeholders.
The Board of Directors of the Company would like
to thank Mr. Kevin Nielsen for his assistance and support assuming
the role of Interim Contract CFO during the Company’s financial
restructuring in 2018 and this transitional period. We wish
Mr. Nielsen continued success in his career.
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.
For further information
contact:
Donald Archibald, Executive Chairman, (403)
660-8906, darchibald@cequence-energy.comTodd Brown, Chief Executive
Officer, (403) 806-4049, tbrown@cequence-energy.com
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.
Mcfe Conversions: Thousands of cubic feet of gas
equivalent ("Mcfe") amounts have been calculated by using the
conversion ratio of one barrel of oil (1 bbl) to six thousand cubic
feet (6 Mcf) of natural gas. Mcfe amounts may be misleading,
particularly if used in isolation. A conversion ratio of 1 bbl to 6
Mcf 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 natural gas as compared to oil is
significantly different from the energy equivalent of 1:6,
utilizing a conversion on a 1:6 basis may be misleading as an
indication of value.
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
include, but are not limited to, statements relating to the
Company’s production and future performance expectations of the
recently completed Dunvegan wells; the timing for the release of
the Company’s 2019 guidance; the objectives of the Company’s
anticipated budget for 2019; and the start date for the Company’s
new Chief Financial Officer. 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.
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.
The TSX has neither approved nor disapproved the
contents of this news release.