CALGARY, Aug. 7, 2015 /CNW/ - Cequence Energy Ltd. ("Cequence" or the "Company") (TSX: CQE) was informed by Alliance Pipeline that an operational event has caused the pipeline company to call for all suppliers to suspend deliveries into the pipeline for an indeterminate period of time.
As a result, Cequence has suspended approximately 7,500 boe/d of production, primarily from Simonette, for an indeterminate period of time. Alliance Pipeline advised shippers Thursday evening that an amount of hydrogen sulfide (H2S) entered into its mainline pipeline as result of complications experienced by an upstream operator. Alliance has declared this to be a force majeure event.
There is no other information available at this time on the duration of the interruption. For reference, if the pipeline suspension lasts for 3 days, our third quarter production would be reduced by approximately 245 boe/d. Cequence will provide updates as additional information becomes available.
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 include, but are not limited to, management's expectation of the impact of the production suspension on Cequence's third quarter production estimate. 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.
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.
The TSX has neither approved nor disapproved the contents of this news release.
SOURCE Cequence Energy Ltd.
For further information: Paul Wanklyn, Chief Executive Officer, (403) 218-8850, firstname.lastname@example.org; David Gillis, Chief Financial Officer, (403) 806-4041, email@example.com