Corporate Presentation

FirstEnergy Capital

Canadian Energy Conference

March 2010

Accumulating opportunities through

acquisitions and drilling

2

The Cequence Team

• Former Director, Cyries Energy Inc., and Chief Operating Officer, Cequel Energy Inc. and Cypress Energy Inc.

Howard Crone, P.EngPresident & CEO

• Former Vice President, Exploration, Cyries Energy Inc., Cequel Energy Inc., PrimeWest Energy Trust, Cypress Energy Inc., Samson Canada, Wascana Energy Inc.

Richard ThompsonExecutive Vice President

• Former Treasurer, Cyries Energy Inc., Cequel Energy Inc., Deloitte Touche

David Gillis, CAVice President Finance & CFO

• Former Geology & Exploration Manager, Cyries Energy Inc., Cequel Energy Inc., PrimeWest Energy Trust, Cypress Energy Inc.

Hany BeshryVice President Exploration

• Former Vice President, Operations, Cyries Energy Inc., Cequel Energy Inc., PrimeWest Energy Trust, Cypress Energy Inc.

Robin Bieraugle, P.Eng.

Vice President Operations

• Former Vice President, Negotiations, Cadence Energy Inc., Mission Oil & Gas Inc., StarPoint Energy Ltd., Ketch Energy Ltd., Cypress Energy Inc.

Nathan MacBeyVice President Land

• Former Chief Financial Officer, Cyries Energy Inc., Cequel Energy Inc., PrimeWest Energy Trust, Cypress Energy Inc.

Erin Thorson, CMAController

3

Board of Directors

• Former CEO and Chairman of Cyries Energy Inc., Cequel Energy Inc. and Cypress Energy Inc.

Don ArchibaldChairman

• President & CEO of Cequence Energy Ltd., former COO of Cequel Energy Inc. and Cypress Energy Inc.Howard Crone

• Executive Vice-President of Cequence Energy Ltd.Richard Thompson

• President of Starvalley Oil & Gas Ltd., former President & CEO of StarPoint Energy Ltd., Crescent Point Energy and Startech Energy Ltd.

Paul Colborne

• President of Destiny Energy Inc., Chairman of Crescent Point Energy Trust, former VP Exploration of Mission Oil & Gas Inc. and StarPoint Energy Ltd.

Peter Bannister

• President & CEO of Ember Resources Inc.Doug Dafoe

• Joint Managing Partner, Felesky Flynn; appointed Queen’s Counsel in 2000Brent Perry

4

Who is Cequence Energy?

• Revitalized balance sheet

• Built and sold three junior oil and gas companies

• Assemble a balanced portfolio of resource (Montney) and emerging resource assets

• Proven ability to execute on acquisitions

• Pursue lower risk, medium depth and multi-zone drilling opportunities with potential for reserve and production additions

• Operated, high working interest land base in focus areas with control of infrastructure

Proven

abilities and

operational

focus

5

Corporate Summary

Production 2,600 boe/d

85% natural gas

Undeveloped Land 145,000 net acres

Shares Outstanding39.5 million basic

45.6 million fully diluted

Insider Ownership19.3% basic

29.4% fully diluted

Credit Facilities $45.0 million

Hedge (physical)(1) 6,000 GJ @ $7.85/mcf

(1) Expires March 31, 2010.

6

Net Asset Value (NAV)

Proved plus probable (10% disc) $157,689

Undeveloped lands (internal estimate) 31,500

Working capital (excluding hedge) 6,210

Investments 13,738

Long term debt (18,054)

Net asset value 191,083

Basic shares outstanding 39,530

Net asset value per share $4.83

7

Reserves Highlights

• Reserves growth per share of 44% TP and 57% 2P

since recapitalization

• TP reserves increased by 56% to 7.5 Mboe

• 2P reserves increased by 70% to 12.8 Mboe

• 2P NPV 10% reserves increased by 34% to $157.7MM

• FD&A (including FDC) of $13.67 per boe (2P)

• FD&A (excluding FDC) of $8.51 per boe (2P)

• RLI of 16.6 years (Q4 production of 2100 boepd)

8

Poised for Growth

2009 Q4 Production 2,100 boepd

2009 Q4 Cash Flow (est.) $3.5 MM

Debt (estimated) Dec.31, 2009: $6 MM excess cash

9

Cequence Land Holdings

Alberta

BC

• Alberta: 1,900 boepd

• British Columbia: 700 boepd

• Multi-zone potential: 2 to 4 primary targets

• Access to infrastructure

Red Creek

Oak / West Stoddart

Peace River Arch

Gordondale

Sinclair

Mica

10

Montney Opportunities

Sinclair

13-22 /16-15

1-1012-9

13-33

3-29

5-16

Immediately available

drilling opportunities for

Montney exploration and

development at Sinclair,

Mica, Red Creek

and Gordondale

• Exposure to 60+ sections of

Doig / Montney rights

• Concentrated land position

directly offset by significant

new discoveries

• Current success extends

prospectivity and preserves

land for future development

Cequence Land

Cequence Location

Cequence Land with Rights Surface to Base Halfway

11

Sinclair: Lower Doig / Montney Resource

Cequence Land

Murphy

Tupper

EnCana

Swan

Advantage

Glacier

Cequence

Sinclair/Doig /Montney

L. Doig / U. Montney Resource

• DPIP = 30 bcf per section (est.)

• 12.75 net sections un-booked resource potential 383 bcf

• 51 net horizontal locations

• Booked 1.5 Mboe (TP) and 3.5 Mboe(2P)

Lower Montney Resource

• DPIP = 25 bcf per section (est.)

• 14 net sections unbooked resource potential 380 bcf

• 56 net horizontal locations

Nikanassin Resource

• DPIP = 9 bcf per section (est.)

• 5 net sections un-booked resource potential 45 bcf

• 10 net horizontal locations

Sinclair Area

• Total resource potential on Cequence lands over 800 bcfand 117 net horizontal locations

• Potential value (PV 10%) of $200+ MM @ $6 GJ

Montney / Doig Production

Cequence Location

Cequence Land with Rights Surface to Base Halfway

12

Montney Operational Update

13-22 / 16-15• 100% working

interest

• Drilled and cased

horizontal well to

evaluate the

Lower Montney,

completion

underway

1-10• 100% working

interest

• Drilled and

cased vertical

well

• Completion in

Q1 2010 to

evaluate Lower

Montney

12-9• 100% working interest

• Stabilized rate of 5 MMCF/d at

a flowing pressure 1,250 psi

• Eight 100 tonne poly C02

fractures.

• Reserves of 3.5 bcf (2P)

BC AB

Basal Doig

(75 m)

Montney

Lower

MontneyLower

Montney

Montney

(300 m)

Type Log Type Log

13-33

3-29

5-16

13

Mica, North East BC

• Location planned

Q3 2010 to test Lower

Montney

• Uphole Doig oil potential

• 100% working interest

• Leverage into open

Crown and further

expansion of the play

Cequence Land

Cequence Location

Lower Montney

Trend

Montney Production

14

Red Creek, North East BC

• 100% working interest

• Up hole re-completion in

the Upper Montney

• Infrastructure offsetting

• Repeatability on offsetting

lands

14-12

(original well)

Cequence Land

Cequence Location

Montney Production

15

Historical Results, Future Successes

Dawson

Gold Creek

Knopcik / Valhalla

Red Creek

Oak / West Stoddart

Peace River Arch

Gordondale

Sinclair

Mica

• Halfway, Falher

• 20 bcf and 500,000 bbls

produced from play

extension

• Notikewin, Falher,

Gething, Nikanassin,

Halfway, Doig

• Production growth from

zero to 2,800 boepd

• Paddy, Notikewin,

Bluesky, Falher,

Beaverhill Lake

Sandstone, Slave

Point

• Production growth

from zero to 3,500

boepd

16

Well Economics by Type

Well Type &

Area

(Risked)

Full Cycle

Well Cost

(M)

Initial

Prod.

(mcf/d)

Gas

Reserves

per well

(mmcf)

NPV (10%),

Before Tax

(M)

F&D Cost

(per boe)

Before

Tax, Rate

of Return

(%)

Bluesky

(Blueberry)

$950 590 560 $906 $9.86 39.7

Nikanassin

(Knopcik)

$1,650 1,200 1,080 $1,650 $8.64 46.4

Halfway

(Valhalla)

$1,750 1,000 995 $1,375 $9.68 37.0

Montney – Vert

(Valhalla)

$1,950 1,025 1,100 $1,825 $9.19 41.1

Montney - Hz

(Sinclair)

$5,800 3,000 3,500 $3,950 $9.17 30.3

NOTE:

• Excludes Alberta Drilling Credit ($200 per metre) and Deep Well Royalty credits

•SprouleDecember 31, 2009 Price Forecasts of $5.65/mmcf (natural gas 2010)

17

Opportunity Driven

• Two acquisitions totaling $17.25 million for 850 boepd

• Metrics: $20,294 / flowing boe, $12.27/boe TP, $8.25/boe P+P

• Strategic undeveloped lands with an inventory of stacked target drilling locations and re-entry candidates

• Key facility ownership and pipeline infrastructure

Property: Peace River

Arch Acquisitions

• Property acquisition totaling $6.1 MM for 165 boepd

• Potential to triple production in 2010

• Synergies with current CQE land holdings

• Additional working interest consolidation completed

Property: Valhalla

Acquisition

• Takeover bid closed November 12, 2009

• Consolidation of Montney holdings

• 60+ sections of undeveloped land

• Drilling and completion efforts currently underway

Corporate: HFG

Holdings

18

Growing + Repeatable Prospect Inventory

Basal Doig / Montney

Resource Play

• Proven performer with over 240 industry wells

• 110 CQE locations

• 0.77 TCF resource potential in Sinclair

• Expanding the play via Crown acquisitions and farmin deals

• 60+ sections of prospective land at 100% WI

Peace River Arch Emerging

Resource Play

• 50+ locations for new drill or re-completions

• Multi-zone, multi-well prospects

• 15 MM+ boe of potential reserve additions (unrisked)

• Control of key infrastructure

Gunnell, NE BC

• Initial production rates of 2.7 mmcf/d

• Extensive 3D coverage

• Multi-leg horizontals to maximize reservoir exposure

• 10+ locations to be drilled in Q4 2010/Q1 2011

• Additional locations based upon recently acquired 3D

19

• Montney / Doig resource potential on 60

sections of 100% working interest lands

(>50 sections unbooked)

• Multi-zone drilling and recompletion efforts

to accumulate additional opportunities

• Experienced management team and Board

• Continued consolidation success and

financial ability to execute acquisitions

The Cequence Advantage

20

Note Regarding Forward-Looking Information

Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. This information relates to future events or future performance of the Company. When used in this presentation, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “seek”, “propose”, “expect”, “potential”, “continue”, and other similar expressions, are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

Although the Company believes that the expectations reflected in such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. Many factors could cause the Company’s actual results, performance or achievements to vary from those described herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking information prove incorrect, actual results may differ materially from those described in this presentation as intended, planned, anticipated, believed, estimated or expected. Forward-looking information in this presentation may include, among others, information pertaining to the following: (i) the completion of the Company's previously announced acquisitions, the timing and benefits thereof; (ii) drilling opportunities and prospects; (iii) development, exploration, acquisition and disposition plans and opportunities and the timing thereof; (iv) reserve quantities, potential reserve additions, reserve life and future production levels; (v) factors upon which the Company will decide whether or not to undertake a specific course of action; (vi) expectations regarding the Company’s ability to obtain capital; and (vii) commodity prices and exchange rates.

With respect to forward-looking information in this presentation, the Company has made assumptions, regarding, among other things: (i) the completion of the Company's previously announced acquisitions and the timing thereof; (ii) the impact of the ongoing world credit crisis and recession; (iii) the impact of increasing competition; (iv) the timely receipt of all required regulatory approvals; (v) field production rates and decline rates; (vi) the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; (vii) the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; (viii) the regulatory framework regarding royalties, taxes and environmental matters; (ix) the ability of the Company to successfully market its oil and natural gas products; (x) the Company’s ability to obtain additional financing on satisfactory terms; (xii) commodity prices and exchange rates; and (xiii) the Company’s ability to attract and retain qualified personnel. Investors are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.

The Company’s actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth below and elsewhere in the Company's continuous disclosure documents, including without limitation, the following: (i) failure to complete the Company's previously announced acquisitions on the terms agreed upon or at all; (ii) general economicconditions, including the impact of the ongoing world credit crisis and recession; (iii) volatility in global market prices for oil and natural gas; (iv) competition; (v) liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; (vii) the availability of capital; (viii) alternatives to and changing demand for petroleum products; (ix) changes in legislation and the regulatory environment, including uncertainties with respect to environmental legislation; (x) title defects which may adversely affect the Company; (xii) the availability of qualified personnel; and (xiii) the availability of drilling and related equipment in the particular areas where such activities will be conducted. In addition, the material risk factors affecting the Company and its business are contained in the Company's Annual Information Form which is available under the Company's issuer profile on SEDAR at www.sedar.com.

Furthermore, information relating to oil and gas reserves is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that reserves described can be recovered and profitable in the future. The forward-looking information contained in this presentation is made as of the date hereof and the Company 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 presentation is expressly qualified by this cautionary statement.

2400, 240 4th Avenue SWCalgary AB T2P 4H4

Phone: 403-229-3050

Fax: 403-229-0603

Banker National Bank

Auditor Deloitte LLP

Legal Counsel MacLeod Dixon LLP

Evaluation Engineers GLJ Petroleum Consultants

Registrar & Transfer Agent Valiant Trust Company

www.cequence-energy.com