Cequence Announces Expanded Ansell Project and Production of 12,000 boepd

Cequence Announces Expanded Ansell Project and Production of 12,000 boepd 
CALGARY, Jan. 21, 2014 /CNW/ - Cequence Energy Ltd. ("Cequence" or the 
"Company") (TSX: CQE) is pleased to announce expansion of its project at 
Ansell and production of 12,000 boepd. 
Ansell Project 
Cequence is pleased to announce the initial success of the Company's Wilrich 
drilling program at Ansell and the addition of key lands increasing its total 
landholdings to 46.5 gross sections. The most recent Wilrich well was drilled 
at 14-19 (49 % working interest) and tested at 2,500 boepd, and has produced 
for 60 days at an average restricted rate of 960 boepd. Two Ansell wells have 
been completed to date and are ahead of the Company's model expectation. 
Current net production in the Ansell area is approximately 650 boepd and is 
restricted by production facilities. One additional Wilrich well was drilled 
in the first quarter and is awaiting completion and two additional horizontal 
wells are currently drilling. 
The first quarter capital program at Ansell is expected to include six wells 
(3 net) and the construction of gathering and compression facilities to 
increase production capacity to approximately 40 mmcf/day. Five of the six 
wells are scheduled to be 'earning wells' where Cequence pays 15% of the 
capital cost to retain a 49% working interest with the sixth well scheduled to 
be drilled at the Company's 49% working interest. 
Drilling to date at Ansell has identified the Notikewin and Falher formations 
as prospective secondary targets on Cequence acreage. Cequence's partner is 
shooting a 135 square kilometer 3D seismic program to both focus the Wilrich 
drilling program and image these additional potential targets. With the recent 
addition of contiguous and highly prospective lands, continued drilling 
success by Cequence and other operators in the area, the acquisition of 3D 
data and construction of the gathering system, Ansell is considered a new core 
area by the Company. Pending results from the initial wells and the ongoing 
plans of the Company's partner in the area, Cequence may direct additional 
capital to this area in 2014 to drill additional Wilrich wells and add 
production facilities. 
Simonette Project 
In the fourth quarter of 2013, Cequence completed a 65% working interest 
Dunvegan well at 5-2. The well was recently put on production at restricted 
gross production rates of 10.0 mmcf/d of natural gas and 300 bbls/day of free 
condensate. The 5-2 well is a follow-up to the Company's 10-2 well that has 
produced 2.5 bcf since commencing production in February 2013. 
Montney development at Simonette is ongoing with three wells drilled in the 
fourth quarter of 2013. The 10-24 well was recently brought on production at 
restricted rates of 5.0 mmcf/d and 75 bbls/d of free condensate at flowing 
casing pressure of 1,715 psi. The 10-24 well is located on a new padsite 
located 1.5 miles from existing offset Montney development. The remaining two 
Montney wells were drilled off the 7-29 padsite and experienced mechanical 
difficulties on completion. Diagnostic tools were run on both wells and 
Cequence is currently evaluating remediation plans. It is anticipated that 
completions will be able to be performed on these wells. These two wells 
offset Cequence's best liquids producers at 9-21 and 3-21. 
A Montney exploration well at 16-10-61-01W6 is currently drilling and will be 
the first test on the southwestern Montney acreage at Simonette which the 
Company has a 100% working interest.  Management believes the geologic data 
observed from the open hole logs of the full Montney section is encouraging. 
The well is expected to be completed in the first quarter of 2014. If 
successful, management believes 16-10 would derisk Montney acreage on the 
western portion of Simonette where the Company's reserves evaluators have not 
previously assigned any Montney reserves or resources. 
In addition, Cequence has drilled a Wilrich well at 13-30-61-26W5. The 13-30 
well is a significant step out from the producing Wilrich wells at Simonette 
in an area where the Company's reserves evaluators have not previously 
assigned any Wilirch reserves. The 13-30 well is expected to be completed in 
February 2014. 
The Company currently has two operated rigs drilling at Simonette. 
Production 
Based on field estimates, production for 2013 averaged 10,200 boepd (56 mmcfd 
of gas and 1,500 bpd of liquids), which is slightly higher than the Company's 
previously provided production guidance of 10,000 boepd for the year. The 2013 
average production represents an increase of 13 percent above 2012 average 
production. 
Based on field estimates, production recently reached 12,000 boepd with the 
tie-in of the 5-2 Dunvegan well and the completion of our 10-24 Montney well, 
both at Simonette, both of which wells are currently restricted. Cequence has 
recently maximized field capacity at Simonette and Ansell. The 13-11 
compression facility at Simonette is being expanded and capacity is expected 
to reach 70 mmcf/d in early February. Cequence expects to complete an 
additional 10 gross (7 net) wells in the first quarter of 2014. 
Production from the 3-31 and 15-31 Montney wells completed in Q4 2013 have 
each averaged 860 and 844 boepd (11% condensate), respectively, for the first 
60 days of restricted production. Production from both wells is better than 
the Company's model expectations. The 14-1 Montney well completed in Q4 has 
produced at an average of 590 boepd (9% condensate) for the first 60 days. 
This is slightly below the Company's Montney model expectation. 
Hedging Update 
Cequence has now hedged approximately 50% of its 2014 forecast gas production 
at an average gas price of Cdn $4.00 per mcf. 
Further Information 
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 
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: business strategies; operational 
decisions and the timing thereof, development, remediation and exploration 
plans and the timing thereof, including the likelihood that wells will become 
productive; future production rates and expected production volumes; the 
number and quality of future potential drilling locations; capital 
allocations; drilling plans; the derisking of Company acreage; and facility 
development, expansion and future capabilities. 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 its forward-looking information is 
reasonable, undue reliance should not be placed on forward-looking information 
because Cequence cannot give 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: cash flow projections and netbacks; anticipated 
operating costs; bank debt levels; reserves; field production rates and 
decline rates; the ability of Cequence to secure adequate product 
transportation; the timely receipt of any required regulatory approvals; 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 of Cequence to obtain financing on acceptable terms; 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. 
Additional Advisories 
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 year ended December 31, 2013, the ratio between the average price of 
West Texas Intermediate ("WTI") crude oil at Cushing and NYMEX natural gas was 
approximately 27:1 ("Value Ratio"). The Value Ratio is obtained using the 2013 
WTI average price of $97.97 (US$/Bbl) for crude oil and the 2013 NYMEX average 
price of $3.67(US$/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. 
A pressure transient analysis or well-test interpretation has not been carried 
out on certain wells and thus certain of the test results provided herein 
should be considered to be preliminary until such analysis or interpretation 
has been completed. Readers are cautioned that the foregoing well test results 
are not necessarily indicative of long-term performance or of ultimate 
recovery. 
The Toronto Stock Exchange has neither approved nor disapproved the contents 
of this press release.
 

SOURCE  Cequence Energy Ltd. 
Paul Wanklyn, Chief Executive Officer, (403) 
218-8850,pwanklyn@cequence-energy.com David Gillis, Chief Financial Officer, 
(403) 806-4041,dgillis@cequence-energy.com 
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CO: Cequence Energy Ltd.
ST: Alberta
NI: OIL  
-0- Jan/21/2014 22:07 GMT
 
 
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