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Investor PresentationSeptember 2009
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., David Gillis, CA , y gy , q gy ,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 Cypress Energy Inc. p
• 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
E i Th CMA
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• Former Chief Financial Officer, Cyries Energy Inc., Cequel Energy Inc., PrimeWest Energy Trust, Cypress Energy Inc.
Erin Thorson, CMAController
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 LtdRichard Thompson • 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 ColborneStartech Energy Ltd.
• 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
• Former Chairman, President & CEO of Precision Drilling CorporationHank Swartout
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• Joint Managing Partner, Felesky Flynn; appointed Queen’s Counsel in 2000Brent Perry
Overview
• Revitalized balance sheet
• Management team has built and sold three junior g joil and gas companies
• Full complement of technical and business development leaders within team
• Extensive experience in focus areas of Deep B i d P Ri A hBasin and Peace River Arch
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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 d illi t iti ith t ti l fdrilling opportunities with potential for reserve and production additions
• Assemble operated land base in focus areas• Assemble operated land base in focus areas with high working interest
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Corporate Summary
Production (as at September, 2009)
2,150 boe/d85% natural gas
2 6RLI 12.6 years
Undeveloped land 141,000 net acres
Shares outstanding36.4 million basic42.5 million fully diluted
Insider ownership21.8% basic
Insider ownership32.7% fully diluted
Net cash on hand $10.0 million
Credit facilities $45.0 million
Hedge (physical)(1) 6000 GJ @ $7.85/mcf
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(1) Value as of September 2009 is approx. $4.5 million, expires March 31, 2010.
Cequence Area of Focus
• Technical team has drilled 300+ wells in core areasin core areas
• Targeting multi–zone, medium depth, long p greserve prospects with high netbacks
• Numerous drilling• Numerous drilling prospects
• Inventory of AlbertaBritish
Columbiay
acquisition opportunities
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Cequence Land Holdings
Alberta
BC
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Montney Opportunities (Sinclair Area, AB)
• All Montney opportunities are within HFG Holdings. Cequence controls 71% of the outstanding shares.
• Exposure to 60+ sections of Montney rights land
• Immediately available drilling opportunities for Montney exploration and d l t t Si l idevelopment at Sinclair, Mica and Gordondale
• Concentrated land position di tl ff t b i ifi tdirectly offset by significant new discoveries
Proposed Wells
Cequence Land
2008 Land Sale Activity
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Opportunity Driven
• Announced two acquisitions totaling $19 million for 850 boepd
• Reserves: 1.65 MMboe proved, 2.841 MMboe proved plus probable
• Deal metrics: $20,529 per producing boe, $11.33 / boe proved, $7.70 / boe P+P
St t i d l d l d ith i t f• Strategic undeveloped lands with an inventory of stacked target drilling locations
• Key facility ownership and pipeline infrastructure• Key facility ownership and pipeline infrastructure
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Geographic Concentration
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Cequence Land August Acquisition Lands
Growing Prospect Inventory
• Over 50 locations for new drills or re-completions on existing lands or acquisition opportunities
• New drills will target multi-zone, multi-well prospects
• Geologically and seismically supported step-out, twin and development drilling locations continually being upgradedcontinually being upgraded
• Over 15 MM boe of potential reserve additions (unrisked)
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Prospect Inventory - Blueberry, AB
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New Drills Re-completions Cequence Land August Acquisition Lands
www.cequence-energy.com702, 2303 4th Street SW Calgary AB T2S 2S7 Phone: 403-229-3050