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Press release from CNW Group


Tuesday, October 26, 2010

CEQUENCE ENERGY LTD. ANNOUNCES OPERATIONAL UPDATE TO CARDIUM DRILLING ACTIVITY06:01 EDT Tuesday, October 26, 2010CALGARY, Oct. 26 /CNW/ - Cequence Energy Ltd. ("Cequence" or the "Company") (TSX: "CQE") is pleased to provide an operational update with respect to its Cardium light oil resource play.Cequence has successfully completed its first Cardium horizontal oil well at Garrington (the "Discovery Well"). The well was drilled in September to a total measured depth of 3,260 meters with a horizontal section of 1,245 meters.  The well was completed with a multi-stage oil based fracture stimulation over 13 intervals and flowed for 6 days to clean up fracture fluids.  Following clean-up, the well has been flowing for an additional 9 days at a final rate of 260 bbls/day of crude oil and 425mcf/day of natural gas at a wellhead flowing pressure of 200 kpa. Solution gas from the Discovery Well will be tied into Company-owned infrastructure and is expected to be on production in late November 2010. Directly offsetting the Discovery Well, Cequence has identified an additional 10 net potential horizontal locations targeting the Cardium formation.Other BusinessWithin the next week, Cequence intends to drill a follow-up Wilrich horizontal well approximately 2 miles away from the Company's initial Wilrich well recently tested at 8.5 mmcf/day.Cequence is pleased to also announce that on October 15, 2010 Cequence monetized our 2011 commodity swap transactions and realized a gain for cash proceeds of $3.4 million. Previously, Cequence had 4,000 gj's per day hedged for 2011 at $6.025 CAD per gj.Forward Looking InformationCertain 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: operational decisions and the timing thereof, development and exploration plans and the timing thereof; and future production levels. 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 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.  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: field production rates and decline rates; the ability of the Company to secure adequate product transportation; the impact of increasing competition in or near the Company's plays; the timely receipt of any required regulatory approvals; the ability of the Company 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 the Company 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 the Company 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 the Company and described in the forward-looking information.  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 forward-looking information contained in this press release 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 press release is expressly qualified by this cautionary statement.Additional AdvisoriesBoes 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.The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.%SEDAR: 00023788EFor further information: Paul Wanklyn, President and Chief Executive Officer, (403) 218-8850, or David Gillis, Chief Financial Officer, (403) 806-4041,