CALGARY, Dec. 21, 2017 /CNW/ – Cequence Energy Ltd. (the “Company” or “Cequence”) (TSX:CQE) is pleased to announce that it has completed two asset dispositions for total proceeds of $4.3 million. The dispositions include the sale of a non-core property located in B.C. which is producing approximately 100 boe/d and the sale of 25 sections of Lower Montney rights in the Simonette area.
As part of Simonette transaction, the acquirer has agreed to drill and complete a Lower Montney horizontal well prior to the end of 2018. Cequence and other oil and gas companies active in the area have historically drilled wells in the upper half of the Montney formation within the greater Simonette area. Cequence is retaining its full 82 net sections of Upper Montney rights and 57 net sections of Lower Montney rights at Simonette.
Cequence is continuing its winter 2017/2018 Dunvegan oil development program with 2 gross (1 net) horizontal wells rig released to date and another 1 gross (1 net) horizontal well recently spud. The first 2 gross wells were cased with an average of 2,220 m of pay and 39 frac stages cemented in place. The completions for all 3 gross (2 net) wells are planned to begin in January with production expected by the end of Q1 2018.
The Dunvegan program follows up on the success of the 2 gross (1 net) Q1 2017 wells that, on a combined basis, have produced a gross total of approximately 150,000 bbls of oil and 1 bcf of gas in 10 months. Cequence estimates it has 30 to 35 net locations to drill in the Dunvegan oil play.
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.