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 ANNOUNCES OPERATIONS UPDATE

 

oil well

Cequence Energy Ltd. (CQE.T) has provided an update on its recent operational activities. Cequence continues to see strong production from its Dunvegan oil play, including the three gross (two net) wells that came on production in April. For the month of May, the three gross wells averaged a combined 601 barrels per operating day per well, with all three wells above the company's internal model of 300 barrels of oil per day per well.

Total corporate oil and liquids field estimates for the week ending June 24, 2018, were 2,300 barrels per day or 34 per cent of the company's 6,850 barrels of oil equivalent per day (boe/d) for the same period. The strong liquids production during the period was achieved in spite of Cequence's 50-per-cent well, located at 11-14, being off production since late May for temporary operational issues. The 11-14 well is expected to be back on line in July.

The company's 100-per-cent well, located at 15-4, has produced approximately 46,000 barrels of oil in 57 operating days and is currently flowing at approximately 1,200 barrels per day and two million cubic feet per day of natural gas. To achieve more consistent Dunvegan operating times in June, the company has successfully begun to deliver a portion of the Dunvegan fluid volumes through its joint 50-per-cent infrastructure and facilities it has with KANATA Energy Group. This joint infrastructure will continue to be an integral part of the future development of the company's Dunvegan oil inventory.

The company has identified an additional 26.5 net Dunvegan drilling locations on its land.

About Cequence Energy Ltd.

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.