Cequence Energy Ltd. provided earnings and production guidance for the full year of 2014 and first quarter ended March 31, 2015. For the year 2014, production in 2014 is now expected to average approximately 11,000 boe per day (84% natural gas and 16% oil and natural gas liquids), dropping from the previously expected 13,500 to 14,000 boe per day. Crude – WTI is expected to be USD 99.75/bbl. Natural gas – AECO is expected to be CAD 4.60/GJ. The company has increased spending plans for 2014, to USD 170 million (prior to dispositions) from USD 120 million, now that it has completed the disposition of its entire interest in its non-operated assets in the Ansell area 18,800 net acres of land, 1,600 boe per day of current production and a 49% working interest in field infrastructure. The company is forecasting a 2014 exit rate of 12,000 boe per day.

For the first quarter ended March 31, 2015, the company expects average production of 13,500 BOE/d. Crude – WTI is expected to be USD 99.75/bbl. Natural gas – AECO is expected to be CAD 3.85/GJ. The company expects to maintain an active two-rig drilling program through March 2015 and increase production from the current rate of 10,400 boe per day to exit the first quarter of 2015 at 15,000 boe per day.

For the year 2014, the company expects funds flow from operations to be USD 83 million. Funds flow from operations per share is expected to be USD 0.39. Net capital expenditures, including dispositions were expected to be USD 23 million. Royalties is expected to be 10%. Net debt and working capital deficiency is expected to USD 51 million. This years budget includes an estimated USD 24.1 million of capital expenditures incurred to date in 2014 on the Ansell property prior to disposition.

For the first quarter ended March 31, 2015, the company expects funds flow from operations to be USD 27 million. Funds flow from operations per share is expected to be USD 0.13. Net capital expenditures, including dispositions were expected to be USD 58 million. Royalties is expected to be 8%. Net debt and working capital deficiency is expected to USD 82 million.

Capital expenditures for the nine-month period beginning July 1, 2014, and ended March 31, 2015, are budgeted to be USD 160 million, prior to dispositions, and include 17 (16.3 net) wells and a facility expansion at Simonette.