Cequence Energy Ltd. reported earnings results for the fourth quarter and year ended December 31, 2011. The company reported increased funds flow from operations by 31% to $10.0 million or $0.06 per share from $7.6 million or $0.06 per share in the fourth quarter of 2010. Production revenue was $23.527 million against $22.352 million a year ago. Comprehensive loss was $15.598 million against $23.206 million a year ago. Diluted per share was $0.10 against $0.18 per share a year ago. Total capital expenditures were $56.335 million against $19.685 million a year ago. For the year, production revenue was $101.996 million against $54.570 million a year ago. Comprehensive loss was $20.158 million against $52.349 million a year ago. Diluted per share was $0.14 against $0.75 per share a year ago. Funds flow from operations was $42.262 million against $15.997 million a year ago. Total capital expenditures were $126.578 million against $262.879 million a year ago. Funds flow from operations for the year ended December 31, 2011 increased to $42.3 million from $16.0 million in the prior year due to higher production volumes and lower operating, general and administrative and transportation costs, on a per boe basis. The company exited 2011 with net debt of $51.4 million on bank lines totalling $110 million. The balance of Cequence's 2012 budgeted capital spending will target the Company's highest liquids-weighted prospects. The company considers approximately 65% of its remaining 2012 budget to be discretionary. The majority of the 2012 budget is directed towards drilling in the Montney at Simonette, which has anticipated liquids yields ranging from 25 to 60 bbls/MMcf. The company also plans to target the Dunvegan at Simonette, which has anticipated liquids yields of up to 75 bbls/MMcf and to test a new zone in the Falher at Simonette. The company closely monitors fluctuations in natural gas prices and will adjust the 2012 budget if facts and circumstances require, in order to maintain the strength of the company's balance sheet.