Cequence Energy Ltd. reported earnings and production results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported production revenue of $21,939,000 against $23,527,000 for the same period last year. Comprehensive income was $666,000 against comprehensive loss of $15,598,000 for the same period last year. Funds flow from operations was $11,603,000 or $0.06 per basic and diluted share against $10,002,000 or $0.06 per basic and diluted share for the same period last year. Total capital expenditures were $24,641,000 against $56,335,000 for the same period last year. The company was able to increase funds flow from operations despite average fourth quarter prices that were 8% lower than prior year through decreases in cash costs from the corresponding period in 2011.

For the year, the company reported production revenue of $75,650,000 against $101,996,000 for the same period last year. Comprehensive loss was $17,673,000 or $0.10 per basic and diluted share against $20,158,000 or $0.14 per basic and diluted share for the same period last year. Funds flow from operations was $33,724,000 or $0.19 per basic and diluted share against $42,262,000 or $0.29 per basic and diluted share for the same period last year. Total capital expenditures were $78,400,000 against $126,578,000 for the same period last year. The decrease in funds flow from operations is due largely to a 26% decrease in revenue resulting from lower realized oil and natural gas prices. The reduction in revenue was partially offset by lower royalties, transportation, general and administrative expenses, operating costs and the receipt of a termination fee.

The company reported production results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported production of natural gas of 47,125 Mcf/d against 47,203 Mcf/d for the same period last year. Production of crude oil was 583 bbls/d against 503 bbls/d for the same period last year. Production of natural gas liquids was 515 bbls/d against 509 bbls/d for the same period last year. Total production was 8,951 boe/d against 8,879 boe/d for the same period last year.

For the year, the company reported production of natural gas of 47,137 Mcf/d against 47,825 Mcf/d for the same period last year. Production of crude oil was 622 bbls/d against 575 bbls/d for the same period last year. Production of natural gas liquids was 512 bbls/d against 464 bbls/d for the same period last year. Total production was 8,990 boe/d against 9,010 boe/d for the same period last year.

The company provided first half 2013 capital budget guidance on February 4, 2013. Forecast average production of 10,000 boepd in the first half of 2013 represents 11% growth from 2012 average production. The company expects that production growth will be weighted exclusively to the second quarter coinciding with the completion of Simonette compression and gathering system expansion. The company is encouraged by the results of its first three wells of 2013 which have tested at a combined aggregate rate of 42 mmcf/d plus liquids.