Cequence Energy Ltd. announced operating and financial results for the first quarter ended March 31, 2017. For the quarter, the company reported total revenue of $19,354,000 against $15,772,000 a year ago. Comprehensive income was $5,251,000 or $0.02 per basic and diluted share against loss of $5,888,000 or $0.03 per basic and diluted share a year ago. Funds flow from operations was $7,346,000 or $0.03 per basic and diluted share against funds used in operations of $314,000 or $0.00 per basic and diluted share a year ago. Capital expenditures, including acquisitions (dispositions) were $15,046,000 against $7,151,000 a year ago.

Average production in the first quarter of 2017 of 9,101 boe/d was up 6% from the fourth quarter of 2016 while oil production increased by 341 bbl/d over the same period. The production increase was primarily associated with the previously announced two gross (50% WI) Dunvegan oil wells which were brought on stream in January of 2017. These wells continue their strong performance with March oil production rates of 296 bbls/d and 574 bbls/d gross with corresponding solution gas rates of 2.2 and 2.7 MMcf/d respectively. The solution gas is collected and routed into the 50% owned Cequence gas gathering and processing system. Natural gas production was 45,214 Mcf/d against 52,253 Mcf/d a year ago. Crude oil production was 481 bbls/d against 218 bbls/d a year ago. Natural gas liquids production was 270 bbls/d against 235 bbls/d a year ago. Condensate production was 814 bbls/d against 1,061 bbls/d a year ago.

The company provided guidance for the first half of 2017 in November 2016 which has been revised to include the results of the first quarter and of the winter drilling program that consisted of two Montney wells and one net Dunvegan well at Simonette. The revised guidance is within the expectations set out in the November guidance, including for production, funds flow and net debt. Capital expenditures are $2 million higher due to some additional minor projects in the quarter and some operations that were completed in break up conditions. The annual capital expenditure program of $29 million has been planned to approximate expected annual funds flow. Two net Dunvegan wells are expected to be drilled in early winter with production coming on late 2017. While spending within cash flow, 2017 production volumes are expected to increase approximately 4% from 2016 to average between 9,000 to 9,200 boe/d. The company expects recent improvement to operating and general and administrative costs to continue throughout 2017. Based on forecasted commodity prices of $50/bbl WTI and CAD 2.75/GJ natural gas, Cequence expects funds flow from operations of $28 to 29 million.