2010-09-15-2010-09-10-2010-09-10

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
106MM
Description

Acquired company with properties in Simonette and Bonanza regions of Alberta, targeting the Wilrich, Gething and Montney formations, increasing assets to 8,400 BOE/d, 23.9 MMBOE proved.

Cequence Energy Ltd., Calgary, (Toronto: CQE) has acquired privately held, Calgary-based Temple Energy Inc. for approximately C$106 million in stock.

Cequence issued 0.335 Cequence share per Temple share, acquiring approximately 132.5 million outstanding shares at approximately C$0.80 each. Cequence shareholders now own 52.5% of the combined company, and Temple shareholders hold the remaining 47.5%. Temple has merged with a subsidiary of Cequence.

Temple's assets included properties in the Simonette and Bonanza regions of Alberta, targeting the Wilrich, Gething and Montney formations.

The combined company now has 465,000 net acres (316,000 undeveloped). Production for the combined company is 8,400 barrels of oil equivalent per day (90% gas). Proved reserves as of July 1 were 23.9 million barrels equivalent, and proved and probable reserves were 43.1 million barrels equivalent.

Cequence president and chief executive Howard Crone says, "We remain a high growth, gas-weighted producer with even greater exposure to emerging resource plays, and also the size and critical mass with which to explore and develop them. We believe that the prospects in front of us will position Cequence for significant ongoing growth for years to come, and look forward to having the Temple team join us in delivering that growth."

Temple president and CEO Paul Wanklyn says, "Temple has established key land positions in emerging resource plays in the Simonette and Bonanza areas, which complement Cequence's successes in the Peace River Arch and Garrington areas. This business combination will create a company with the technical expertise and financial strength to compete in the resource based play types in our joint inventory, focusing on multi-zone horizontal and vertical potential in liquids rich natural gas formations in the Deep Basin."

FirstEnergy Capital Corp. was financial advisor to Cequence. Cormark Securities Inc. was strategic advisor to Cequence. Peters & Co. Ltd. was financial advisor to Temple.