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To: Goose94 who wrote (13061)

6/18/2015 7:26:52 AM

From: Goose94

Read Replies (1) | Respond to of 202721

Cequence Energy (CQE-T) June 17, '15 is pleased to announce it has closed its previously announced transaction with Kanata Energy Group Ltd. ("KANATA") pursuant to which Cequence sold a 50% interest in its existing Simonette facilities and related infrastructure and Cequence and KANATA agreed to jointly fund an enhancement of the 13-11-62-27W5M Simonette gas compression and dehydration facility ("Facility"). The Facility enhancement includes adding a shallow cut refrigeration system and sales connection to TransCanada's NGTL system that improve the Company's marketing optionality and long term flow assurance from the Simonette area. The refrigeration plant will be capable of processing 120 mmcf/d of liquids rich natural gas which is expected to be sufficient to cover Cequence's development drilling plans for several years.

Proceeds of $34 million received by Cequence at closing of the sale of the existing Simonette facilities and infrastructure was applied to reduce the Company's indebtedness, resulting in March 31, 2015 adjusted net debt of $49 million. (1) Cequence's borrowing base under its senior credit facilities has been set at $135 million subject to unanimous lender consent for amounts borrowed in excess of $120 million. The Company's senior credit facility is currently undrawn.

About Cequence

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. Further information about Cequence may be found in its continuous disclosure documents filed with Canadian securities regulators at www.sedar.com.

(1) March 31, 2015 adjusted net debt is calculated as March 31, 2015 cash and net working capital less commodity contract assets and liabilities, demand credit facilities, principal value of the senior notes and excluding other liabilities adjusted for the proceeds of $34 million for the sale of the Simonette infrastructure on closing.

SOURCE Cequence Energy Ltd.

Paul Wanklyn, Chief Executive Officer,
(403) 218-8850,
pwanklyn@cequence-energy.com ;

David Gillis, Chief Financial Officer,
(403) 806-4041,
dgillis@cequence-energy.com