Cequence Energy announces completion of the asset exchange for properties in
Simonette and Resthaven
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
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
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
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.
Paul Wanklyn, President & CEO, (403) 218-8850,firstname.lastname@example.org
David Gillis, VP Finance & CFO, (403) 806-4041,email@example.com
SOURCE: Cequence Energy Ltd.
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-0- Apr/16/2013 00:05 GMT
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