Cequence Energy announces increased credit facility and current production
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").
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
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
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
Paul Wanklyn, Chief Executive Officer, (403)
218-8850,email@example.com David Gillis, Chief Financial Officer,
SOURCE: Cequence Energy Ltd.
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CO: Cequence Energy Ltd.
NI: OIL FIN
-0- May/30/2013 22:48 GMT
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