CALGARY, Feb. 11, 2014 /CNW/ – Cequence Energy Ltd. (“Cequence” or the “Company”) (TSX: CQE) is pleased to provide the following operational update.
Cequence recently evaluated available diagnostic data derived from its 01-21 and 02-21 Montney wells and has successfully completed the first phase of the planned remediation plan. Diagnostic analysis of the wells, which were drilled off the 07-29 pad, revealed that the heel portion of both wells were still suitable for frac operations. As such, Cequence was able to frac 4 additional stages in each well. Cequence originally planned for 28 stage fracs in each of the wells. The 01-21 well produced to sales through test equipment for 4 days at an average rate of 2.9 mmcf/d at a flowing tubing pressure of 480 psi. The 02-21 well produced to sales through test equipment for 4 days at an average rate of 2.1 mmcf/d at a flowing tubing pressure of 525 psi. Both wells are currently shut-in to install permanent production facilities, after which these wells are expected to be on stream by mid-February. Cequence is pleased with the initial results of the first stage of its remediation plan and plans to evaluate the wells, including the effectiveness of the increased frac size over break up. Further completion operations on the unstimulated portion of the lateral wellbores is currently being assessed for the summer.
Cequence is presenting at the National Bank Financial Intermediate Energy Growth and Yield Conference in Torontoon February 12, 2014. A revised corporate presentation is available at Cequence-energy.com.
Further Information
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.
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Forward Looking Information
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is 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 information typically contains 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 information in this press release may include, but is not limited to, information with respect to: operational decisions and the timing thereof, development and exploration plans and the timing thereof; future production rates and expected production volumes; the effects of remediation efforts; and future expenditures. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Cequence believes that the expectations reflected in its forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because Cequence cannot give 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 and are implicit in, among other things: cash flow projections and netbacks; anticipated operating costs; bank debt levels; reserves; field production rates and decline rates; the ability of Cequence to secure adequate product transportation; the timely receipt of any required regulatory approvals; the ability of Cequence to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business; Cequence’s ability to operate the properties in a safe, efficient and effective manner; the ability of Cequence to obtain financing on acceptable terms; 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; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of Cequence 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 information is 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 Cequence and described in the forward-looking information. The material risk factors affecting Cequence and its business are contained in Cequence’s Annual Information Form which is available under Cequence’s issuer profile on SEDAR atwww.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and Cequence undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
Additional Advisories
Boes are presented on the basis of one Boe for six Mcf of natural gas. Disclosure provided herein in respect of Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf: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 crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Readers are cautioned that the foregoing well test results are not necessarily indicative of long-term performance or of ultimate recovery.
The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
SOURCE Cequence Energy Ltd.
Paul Wanklyn, President & CEO, (403) 218-8850, pwanklyn@cequence-energy.com
David Gillis, VP Finance & CFO, (403) 806-4041, dgillis@cequence-energy.com[/expand]