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CALGARY, Aug. 12 /CNW/ - Cequence Energy Ltd. ("Cequence") (TSX:CQE) is pleased to announce that Temple Energy Inc. ("Temple") has received an interim order from the Alberta Court of Queen's Bench authorizing the holding of a special meeting (the "Temple Meeting") of holders (the "Temple Shareholders") of common shares of Temple to approve the previously announced plan of arrangement (the "Arrangement") involving, Temple, the Temple Shareholders, Cequence and Cequence Acquisitions Ltd., a wholly-owned subsidiary of Cequence. The Temple Meeting will be held at Suite 2500, TransCanada Tower, 450 - 1st Street S.W., Calgary, Alberta at 10:00 a.m. on September 8, 2010.
The special meeting (the "Cequence Meeting") of holders (the "Cequence Shareholders") of common shares ("Cequence Shares") of Cequence to, among other things, approve the issuance of Cequence Shares pursuant to the Arrangement and to elect a new board of directors of Cequence upon the effective time of the Arrangement will be held in the Strand/Tivoli Room of the Metropolitan Conference Centre at 333 - 4th Avenue S.W., Calgary, Alberta, at 1:00 p.m., on September 8, 2010.
Full details respecting the Temple Meeting, the Cequence Meeting and the Arrangement will be set forth in the notice of special meetings and joint information circular (the "Information Circular") of Temple and Cequence dated August 12, 2010. The Information Circular is anticipated to be mailed to Temple Shareholders and Cequence Shareholders on or about August 16, 2010 and will be filed on SEDAR at www.sedar.com.
In addition, Cequence is pleased to announce that the previously announced private placement offerings of: (i) 3,200,000 Common Shares ("CEE Flow-Through Shares") to be issued on a "flow-through" basis at a price of $2.50 per CEE Flow-Through Share pursuant to which subscribers for such shares will be entitled to receive renunciations of Canadian exploration expense (as defined in the Income Tax Act (Canada) (the "Tax Act")) in amounts equal to the aggregate subscription price of such shares; and (ii) 870,000 Common Shares ("CDE Flow-Through Shares") to be issued on a "flow-through" basis at a price of $2.30 per CDE Flow-Through Share pursuant to which subscribers for such shares will be entitled to receive renunciations of Canadian development expense (as defined in the Tax Act), are expected to close on August 19, 2010.
Cequence is also pleased to announce that it has obtained from GLJ Petroleum Consultants Ltd. ("GLJ") an updated independent engineering evaluation of the oil, natural gas liquids and natural gas reserves attributable to its properties (the "Updated GLJ Report"). The Updated GLJ Report has an effective date of July 1, 2010 and is dated August 9, 2010.
The following is a summary of highlights from certain sections of the Updated GLJ Report. For more detailed information on the Updated GLJ Report, see the material change report of Cequence dated August 12, 2010 filed on SEDAR at www.sedar.com.
- Total proved plus probable reserves increased 40.6% (net 37.7%) from
12,717 (net 11,069) MBOE as at December 31, 2009 to 17,876 (net
15,244) MBOE as at July 1, 2010.
- Total proved reserves increased 44.3% (net 40.5%) from 7,463 (net
6,546) MBOE as at December 31, 2009 to 10,771 (net 9,194) MBOE as at
July 1, 2010.
- Cequence's net present value of total proved plus probable reserves
at a 10% discount rate, before taxes using GLJ's forecast prices
increased by 28.3% from $157.7 million as at December 31, 2009 to
$202.3 million as at July 1, 2010.
The Updated GLJ Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook prepared jointly by the Society of Petroleum Evaluation Engineers (Calgary chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum, National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities and the reserve definitions contained in the Canadian Securities Administrators Staff Notice 51-324.
The Updated GLJ Report includes reserves attributable to Ceqeunce's interest in the Sinclair area of Alberta as at July 1, 2010 as evaluated by GLJ which was divested on July 27, 2010 to the Canadian subsidiary of a large publicly traded oil and gas company for approximately $36.9 million in cash (the "Sinclair Divestiture"). For more information on the Sinclair Divestiture, see the material change report of Cequence dated August 4, 2010 filed on SEDAR at www.sedar.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 on SEDAR at www.sedar.com.
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 level; the timing of the Temple Meeting, the Cequence Meeting and the delivery of the Information Circular; and the completion of the Offering and the private placements. 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 such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because Cequence 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 and are implicit in, among other things: field production rates and decline rates; the ability of Cequence to secure adequate product transportation; 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 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 cautionary statement.
Boes are presented on the basis of one bbl 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 undiscounted or discounted net present value of future net revenue attributable to reserves estimated by GLJ does not necessarily reflect fair market value.
The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Subscription Receipts and Cequence Shares to be offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements.
SOURCE Cequence Energy Ltd.
For further information: For further information: Howard Crone, President and Chief Executive Officer, (403) 806-4040, firstname.lastname@example.org; Dave Gillis, Vice President, Finance and Chief Financial Officer, (403) 806-4041, email@example.com