Investor Presentation - Cequence Energy Ltd.

Investor Presentation - Cequence Energy Ltd.

Investor Presentation
August 2009
The Cequence Team
Howard Crone, P.Eng
President & CEO
Richard Thompson
Executive Vice President
David Gillis, CA
Vice President Finance & CFO
Hany Beshry
Vice President Exploration
p
Robin Bieraugle,
P.Eng.
Vice President Operations
Nathan MacBey
Vice President Land
E i Th
Erin
Thorson, CMA
Controller
2
• Former Director, Cyries Energy Inc., and Chief Operating
Officer, Cequel Energy Inc. and Cypress Energy Inc.
• Former Vice President, Exploration, Cyries Energy Inc.,
Cequel Energy Inc., PrimeWest Energy Trust, Cypress
Energy Inc., Samson Canada, Wascana Energy Inc.
• Former Treasurer,, Cyries
y
Energy
gy Inc.,, Cequel
q
Energy
gy Inc.,,
Deloitte Touche
• Former Geology & Exploration Manager, Cyries Energy
Inc., Cequel Energy Inc., PrimeWest Energy Trust,
Cypress Energy Inc.
Inc
• Former Vice President, Operations, Cyries Energy Inc.,
Cequel Energy Inc., PrimeWest Energy Trust, Cypress
Energy Inc.
• Former Vice President, Negotiations, Cadence Energy Inc.,
Mission Oil & Gas Inc., StarPoint Energy Ltd., Ketch
Energy Ltd., Cypress Energy Inc.
• Former Chief Financial Officer, Cyries Energy Inc., Cequel
Energy Inc., PrimeWest Energy Trust, Cypress Energy Inc.
Board of Directors
Don Archibald
Chairman
• Former CEO and Chairman of Cyries Energy Inc., Cequel
Energy Inc. and Cypress Energy Inc.
Howard Crone
• President & CEO of Cequence Energy Ltd., former COO of
Cequel Energy Inc. and Cypress Energy Inc.
Richard Thompson
Paul Colborne
• President of Starvalley Oil & Gas Ltd., former President &
CEO of StarPoint Energy Ltd., Crescent Point Energy and
Startech Energy Ltd.
Ltd
Peter Bannister
• President of Destiny Energy Inc., Chairman of Crescent
Point Energy Trust, former VP Exploration of Mission Oil &
Gas Inc. and StarPoint Energy Ltd.
Hank Swartout
• Former Chairman, President & CEO of Precision Drilling
Corporation
Brent Perry
3
• Executive Vice
Vice-President
President of Cequence Energy Ltd.
Ltd
• Joint Managing Partner, Felesky Flynn; appointed Queen’s
Counsel in 2000
Overview
• Revitalized balance sheet
• Management team has built and sold three junior
oil and gas companies
• Full complement of technical and business
development leaders within team
• Extensive experience in focus areas of Deep
Basin and Peace River Arch
4
Corporate Objectives
• Build a focused oil and gas exploration and
production company
• Operational focus in Deep Basin and Peace
River Arch
• Execute acquisitions within focus areas
• Pursue lower risk, medium depth and multi-zone
drilling opportunities with potential for reserve
and production additions
• Assemble operated land base in focus areas
with high working interest
5
Corporate Summary
(post-transaction & financing)
(p
g)
Production (as at August 18, 2009)
2,150 boe/d
85% natural gas
RLI
12.6 years
Undeveloped land
141,000 net acres
Shares outstanding
36.4 million basic
41.8 million fully diluted
Insider ownership
18.5% basic
18
5% basic
28.6% fully diluted
Net cash on hand
$10.0 million
Credit facilities
$45.0 million
6
Cequence Area of Focus
• Technical team has
drilled 300+ wells
in core areas
• Targeting multi–zone,
medium depth, long
reserve prospects
with high netbacks
• Numerous drillingg
prospects
• Inventory of
acquisition
opportunities
7
British Columbia
Alberta
Sabretooth Land Holdings
Alberta
BC
8
Montney Opportunities (Sinclair Area, AB)
• All Montney opportunities
are within HFG Holdings.
Cequence
q
controls 71%
%
of the outstanding shares.
• Exposure to 60+ sections
of Montneyy rights
g
land
• Immediately available
drilling opportunities for
Montneyy exploration
p
and
development at
Gordondale, Sinclair
and Mica
• Lands directly offsetting
successful activity by
major operators
9
Proposed Wells
Cequence Land
2008 Land Sale Activity
Opportunity Driven
• Announced two acquisitions totally $19 million
for 850 boepd
• Reserves: 1.65 MMboe proved, 2.841 MMboe
proved plus probable
• Deal metrics: $20
$20,529
529 per producing boe
boe, $11
$11.33
33
/ boe proved, $7.70 / boe P+P
• Strategic undeveloped lands
• Key pipeline infrastructure and facility ownership
10
Geographic Concentration
Cequence Land
11
August Acquisition Lands
Growing Prospect Inventory
• Over 70 locations for new drills or re-completions
on existing lands or acquisition opportunities
• New drills will target multi-zone, multi-well
prospects
• Over 20 MM boe of potential reserve additions
(unrisked)
12
Prospect Inventory - Blueberry, AB
New Drills
13
Re-completions
Cequence Land
August Acquisition Lands
www.cequence-energy.com
702, 2303 4th Street SW
Calgary AB T2S 2S7
Phone: 403-229-3050