Cequence Energy Ltd. Announces Operating and Earnings Results for the First Quarter Ended March 31, 2018; Provides Earnings and Operating Guidance for the First Six Months Ending June 30, 2018
Average production in the first quarter of 2018 of 6,970 boe/d (17% liquids) increased 4% from the fourth quarter of 2017. The production increase was primarily associated with reactivating production that was curtailed in the fourth quarter due to the low AECO gas commodity prices. Cequence is considering curtailing gas production as the low AECO prices have persisted into the second quarter of 2018. The previously announced 3.0 gross (2.0 net) horizontal Dunvegan oil wells were completed and tied into permanent facilities in the quarter. The wells produced more consistently in April and have exhibited encouraging performance with the three wells averaging 440 bbl oil per operating day per well.
The company provided earnings and operating guidance for the first six months ending June 30, 2018. For the six months, the company expects average production of 6,300 BOE/d.
For the six months ending June 30, 2018, the company expects funds flow from operations of 5,200,000 or $0.02 per share and capital expenditures of 6,600,000. Net debt to be 71,400,000 at the end of the period.