Cequence Energy announces closing of $10 million flow-through share offering

CALGARY, Oct. 28, 2016 /CNW/ - Cequence Energy Ltd. ("Cequence") (TSX: CQE) is pleased to announce that it has closed its previously announced private placement of 34,500,000 common shares which were issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.29 per Flow-Through Share for aggregate gross proceeds of approximately $10 million. The offering was conducted through a syndicate of agents that was led by Peters & Co. Limited and included AltaCorp Capital Inc., CIBC World Markets, Cormark Securities Inc. and GMP FirstEnergy.

The majority of the purchasers of Flow-Through Shares will be entitled to renunciations from Cequence of Canadian development expenses ("CDE") in an amount equal to the subscription amount effective December 31, 2016, with the remainder to be effective as of December 31, 2017. The gross proceeds from the offering will be used by Cequence to incur eligible CDE on or before December 31, 2016 or December 31, 2017, as applicable. Cequence intends to drill wells offsetting its recent strong 16-33-61-27W5 Montney well in West Simonette. Management characterizes the Western Simonette area with high gas rates, field condensate rates greater than 35 bbl/mmcf and higher netbacks.

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.

Forward-Looking Information:

Certain 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 the renunciations to purchasers under the private placement and the timing and use of proceeds to incur eligible CDE expenses. 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 Cequence believes that the expectations reflected in such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because Cequence 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: the timely receipt of any required regulatory approvals; the ability of Cequence to incur eligible Canadian Development expenses; the ability of Cequence to obtain qualified staff, equipment and services in a timely and cost efficient manner; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of Cequence 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 Cequence and described in the forward-looking information.  The material risk factors affecting Cequence and its business are contained in Cequence's Annual Information Form which is available under Cequence's issuer profile on SEDAR at www.sedar.com.  The forward-looking information contained in this press release is made as of the date hereof and Cequence 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.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

SOURCE Cequence Energy Ltd.

Todd Brown, Chief Executive Officer, [phone], [email protected]; David Gillis, Executive Vice President and Chief Financial Officer, [phone], [email protected]