Cequence Energy announces management changes

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12 April 2016, Oil, Gas

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The company has also named James Jackson, VP, Engineering; Erin Thorson, Controller; Dave Robinson (VP, Geology) and Chris Soby (VP, Land) each continuing in their respective roles with the Company. The employment of Messrs. Wanklyn (President and CEO), Stewart (VP, Operations) and Stretch (VP Geophysics) ceased effective today.

The Special Committee formed in connection with the previously announced strategic review process has evaluated all the proposals received during the process and is not currently pursuing any such proposals. The committee has determined that the changes to the management team and cost saving initiatives are the best course of action for the Company in the current environment. The Board and management of the Company will evaluate any proposals that may be subsequently received that could enhance shareholder value.

The Board stated: "Our decision to implement the changes to the management team was an extremely difficult decision to make and it was made after a fulsome review of the Company's available strategic alternatives in a weakening commodity price environment. The Board concluded that these changes were necessary to provide shareholders with the best opportunity to realize the inherent value of Cequence's primary asset in Simonette. We strongly believe that the stewardship of these assets needs to be focused on reducing costs and preserving value rather than growth, until such time as commodity prices justify growth with improved economics for drilling and further developing the asset. The Simonette reserve base is now well defined and recognized with 108 booked and 150 un-booked drilling locations and infrastructure in place to fuel future growth when natural gas and oil and natural gas liquids prices improve.

"The Company is financially sound, with no bank debt and approximately 2.5 years until maturity of the CPPIB notes and, as a result, we believe Cequence is well positioned to meet the challenges of the commodity cycle. The management team and the Board will continue to look for complementary opportunities to enhance shareholder value beyond the cost saving initiatives underway. Finally, we wish Paul, Mike and Steve all the best in their future endeavors as they apply their talents to finding new opportunities. The Board thanks them for their contribution in building the Company."

Source: MarketLine

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