CALGARY, April 15, 2013 /CNW/ - Cequence Energy Ltd. ("Cequence") (TSX: CQE) is pleased to announce that it has closed the previously announced asset exchange with Donnybrook Energy Inc. ("Donnybrook") (TSXV: DEI) for Donnybrook's oil and gas properties located in the Simonette and Resthaven areas of Alberta (the "Donnybrook Assets") for Cequence's oil and gas assets located in the Fir area and an aggregate of 10,300,000 common shares in the capital of Cequence ("Cequence Shares"). The transaction was effected pursuant to the terms of an asset exchange agreement and an arrangement agreement both between Cequence and Donnybrook dated February 22, 2013.
The Donnybrook Assets consist of 33 gross (16.5 net) sections of Montney rights at Simonette and 2.7 net sections of Montney land at Resthaven, with current production of approximately 120 boe/d. The acquisition has increased Cequence's working interest to 100% in substantially all of its Simonette landbase. As a result, Cequence controls the pace and future development of such properties with no limitations arising from section boundaries or partner interests.
As consideration for the Donnybrook Assets, Cequence transferred its interest in its non-operated oil and gas properties located in the Fir area (the "Non-core Assets") and issued an aggregate of 10,300,000 Cequence Shares to Donnybrook, which were immediately transferred on a pro-rata basis to the Donnybrook shareholders. The Non-core Assets were not operated by Cequence and consist of 5 net sections of land with current production of approximately 220 boe/d.
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 and Additional Advisories
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, future production levels. 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 are 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. 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 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 Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
SOURCE: Cequence Energy Ltd.
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