CALGARY, Feb. 11, 2013 /CNW/ - Cequence Energy Ltd. ("Cequence" or the "Company") (TSX: CQE) is pleased to announce the results from its first Dunvegan
horizontal gas well at Simonette/Resthaven. The Cequence operated
10-02-061-02W6 well was drilled to a final measured depth of 4,443
meters, including approximately 1,791 meters of horizontal section in
the Dunvegan formation. A total of sixteen 40 tonne fracs were
successfully placed using a frac port system. The well flowed on
clean-up for 53 hours at a final rate of 16.4 MMcf/d plus liquids with
2380 psi flowing casing pressure. The well is currently producing at a
facilities restricted rate of 8.0 mmcf/d at a flowing casing pressure
of 2770 psi. The 10-02 well is the second of three farm-in commitment
wells and Cequence will retain a 65 percent working interest in nine
sections of prospective land at Resthaven.
Cequence management believes that this successful test validates up to
12.0 (7.8 net) locations for liquids rich natural gas in the Dunvegan
formation. Well costs to drill and complete the 10-02 well are
estimated to be approximately $8.5 million and are expected to decrease
as the pool is developed in the future.
Cequence is pleased with the results of this exploratory success. The
Dunvegan success adds to the already extensive Montney, Wilrich and
Falher resource opportunities identified on Cequence's 220 section
Simonette land base.
Cequence is presenting February 14, 2013 at the National Bank
Intermediate Energy Growth and Yield Conference in Toronto. A revised
corporate presentation is available at cequence-energy.com.
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 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, including the number of potential viable locations and the
expected quality of reservoirs; the thickness and pressures of the
Simonette/Resthaven pool; future production rates and expected
production volumes; the number and quality of future potential drilling
locations; and the amount of natural gas liquids yields.
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 at www.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
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
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.
The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release.
SOURCE: Cequence Energy Ltd.
For further information:
Howard Crone, Executive Vice President & COO, (403) 806-4040, firstname.lastname@example.org
Stephen R. Stretch, Vice President, Geophysics, (403) 218-8851, email@example.com