CALGARY, May 30, 2013 /CNW/ - Cequence Energy Ltd. ("Cequence" or the
"Company") (TSX: "CQE") is pleased to announce that the aggregate
borrowing base under its credit facilities has been increased from $100
million to $125 million pursuant to the terms of a credit amending
agreement between Cequence and a syndicate of Canadian chartered banks
The Lenders determine the amount of the borrowing base primarily through
the Lender's assessment and analysis of the Company's oil and gas
reserves and results of operations utilizing the Lenders forecasted
commodity prices in such determinations. The next scheduled borrowing
base re-determination is scheduled for November 2013. The Company
currently has approximately $68 million presently drawn against the
credit facilities which provides the Company with $57 million of
available borrowing capacity and resulting financial flexibility.
Cequence is also pleased to announce that it has averaged over 11,000
boe/d of production for the first two months of the second quarter of
2013. The Company is currently awaiting dry weather conditions to allow
it to access its 9-21 well to install surface facilities and bring
this well onto production.
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 may include, but are not limited
to, scheduled re-determinations of the Company's borrowing base under
its credit facilities; expected financial flexibility provided by
access to the increased credit facility; and operational plans for its
9-21 well and anticipated results therefrom. 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, however, 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. In addition
to other factors and assumptions which may be identified in this press
release, assumptions have been made regarding, among other things: the
impact of increasing competition; the timely receipt of any required
regulatory approvals; the ability of the Company to obtain qualified
staff, equipment and services in a timely and cost efficient manner;
the ability of the operator of the projects which the Company has an
interest in to operate the field in a safe, efficient and effective
manner; the ability of the Company to obtain financing on acceptable
terms; field production rates and decline rates; 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 and the ability of the Company
to secure adequate product transportation; future oil and natural gas
prices; currency, exchange and interest rates; the regulatory framework
regarding royalties, taxes and environmental matters; and the ability
of the Company 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 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.
For the first quarter of 2013, the ratio between the average price of
West Texas Intermediate ("WTI") crude oil at Cushing and NYMEX natural
gas was approximately 26:1 ("Value Ratio"). The Value Ratio is obtained
using the first quarter 2013 WTI average price of $94.30 (US$/Bbl) for
crude oil and the first quarter 2013 NYMEX average price of $3.48
(US$/MMbtu) for natural gas. This Value Ratio is significantly
different from the energy equivalency ratio of 6:1 and using a 6:1
ratio would be misleading as an indication of value.
The TSX has neither approved nor disapproved the contents of this news
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