Fall 2011 Presentation

A Deep Basin Stronghold

Deep Basin specialists

500+ Deep Basin drilling locations on 200 gross sections

Multiple zone, stacked resource

plays

Liquids-rich gas production –economic at <$3.00/GJ

Forecast 2011 exit production:

11,000 boe/d Committed team

Focused on Simonette

2

Capitalization

Trading Symbol TSX: CQE

52-week trading range $1.53-$4.24

Shares outstanding FD 174 million

Insider ownership 11% FD

Market capitalization (1) $620 million

June 30, 2011 net debt ($65) million

Pro forma June 30, 2011 positive working capital (2) $14 million

Bank line $110 million

(1) Based on Cequence recent equity issue price of $3.85 (2) Pro forma June 30, 2011 positive working capital is calculated as cash, net working capital less commodity contract asset and

demand credit facilities with pro forma adjustments for the following transactions: net proceeds of $63 million from the common and flow-through shares issued in August 2011 and $16.4 million related to property dispositions expected to close in Q3 2011.

3

PEACE RIVER

EDMONTON

GRANDE PRAIRIE

BRITISH

COLUMBIA

ALBERTA

Focused on the Deep Basin

ALBERTA

Peace River Arch/NE BC

2011 Estimate: 3,500 boe/d

Deep Basin: Simonette-Kaybob

2011 Estimate: 5,800 boe/d

Other Areas

2011 Estimate: 100 boe/d

4

Simonette-Resthaven: A Great Postal Code

CQE land

Montney wells

Wilrich-Falher wells

Horizontal Well Activity

Resthaven

Celtic / Paramount

Montney

Karr

Paramount

Falher

Resthaven

Paramount

Dunvegan

Resthaven

Encana

Wilrich

Leland

Encana

Falher

Kakwa / Chime

Encana / Tourmaline

Falher / Wilrich

Dunvegan wells

North Simonette

Apache-AOSC

Montney

Simonette

CNRL

Dunvegan

Simonette

COP

Dunvegan

5

Trilogy Plant

CQE WI = 25%

Capacity 10 MMcf/d

Keyera Processing Facility

Capacity 153 MMcf/d

Available Capacity 90 MMcf/d

Simonette: A Concentrated Land Base

• Simonette land

• 150 net sections (avg. 75% W.I.)

• Low operating costs –

average of <$7.00/boe

Existing 3D seismic

Proposed 2012 3D seismic

CQE land

6

CQE well

CQE field compressor

CQE Gathering system

CQE Planned gathering system

12” Keyera gathering system

Stacked Zones Expose Significant Resources

Cequence land

5-10 bcf

5-10 bcf

5-24 bcf

5-25 bcf

30-60 bcf

Dunvegan

Falher

Wilrich

Gething

Montney

Zone Total Resource Potential/Sec

2,200m

2,950m

3,100m

2,700m

2,500m

2,800m

7

Simonette Montney Liquids-Rich Resource Play

CQE land

CQE Montney rights

Bypass pay wells

CQE Montney test well

CQE Montney Hz well

Planned thru Q1 2012 Montney locations

Montney inventory

• Delineation drilling to further de-risk land base

• 200 potential locations @ 4 wells/section

• 25 of 70 net sections de-risked

• 30-60 metres net pay

Fall 2011

Plan to Spring 2012

Full Development Plan (50 sections)

8

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Montney Scorecard CQE Working Model vs. Well Results

Pro

du

cin

g D

aily

Gas

Rat

e (m

cf/d

)

Months on Production

Montney

23% NGL

77% Gas

58% Gas

42% NGL

Volume

Revenue

1-31

1-22

9

Simonette Wilrich Liquids-Rich Resource Play

CQE land

CQE Wilrich rights

Bypass pay wells

CQE Wilrich Hz well

Wilrich locations planned thru Q1 2012

Wilrich inventory

Fall 2011

• Delineation drilling to further de-risk land base

• 60-120 locations @ 1.5-3 wells/section

• 60+ net sections of total potential

• 20 sections de-risked through initial drilling

Plan to Spring 2012

Full Development Plan (40 sections)

10

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Wilrich

Wilrich Scorecard CQE Horizontal Working Model vs. Well Results

Pro

du

cin

g D

aily

Gas

Rat

e (m

cf/d

)

Months on Production

12% NGL

88% Gas

76% Gas

24% NGL

Volume

Revenue

11

Montney and Wilrich Model Economics

Wilrich

Montney

Production Potential Gas Liquids ORGIP

Capital Cost/ Well ROR NPV

Model Payout

Breakeven Gas Price

4.5 mmcf/d

20

bbls/mmcf

4.0

BCF

$5.0 MM

75% $4.4 MM

17 months

$2.25/ mmbtu

4.5

mmcf/d

45

bbls/mmcf

4.5

BCF

$5.5

MM 90%+ $8.0

MM

14 months

<$2.00/ mmbtu

CQE Working Model @ $4.00/mmbtu

12

Other Stacked Cretaceous Potential

• 200 potential

Gething locations (two wells per section)

• Dunvegan and Falher activity in nearby pool indicates encouraging exploration potential

Dunvegan

Falher

Bluesky / Gething

13

Dunvegan

Falher

Wilrich

Gething

Montney

14

One drilling

pad could add

$100 MM of NPV to

Cequence

Single Well NPV ($mm)

Emerging

Emerging

4.4

2.6

8.0

Stacked Development Adds Significant Value

Potential Locations

60-120

200

150-200

?

?

Cequence Energy Results and Guidance

2010 2011 Guidance

Production (boe/d Average full year) (1)

Exit rate

4,451 7,485

9,400

11,000

Capital expenditures $64.1 MM $150 MM

Net acquisitions/(dispositions) (2) $216.6 MM ($24.0) MM

Equity issued (3) $113 MM

Operating costs per boe $10.90 $9.00

Royalties (% of revenue) 12 13

Crude oil – WTI (Cdn$/bbl) $79.38 $97.50

Natural gas – AECO (Cdn$/GJ) $3.79 $3.63

Funds flow (4) Per share ($/basic share)

$19.1 MM $0.27

$45-$50 MM $0.32

December 31 net debt $73.1 MM $50-$55 MM

Basic shares outstanding: December 31 128.8 MM 161.2 MM

(1) 87% natural gas

(2) Includes the dispositions of three properties in 2011 with combined production as of December 31, 2010 of approximately 990 boe/d and the acquisition of properties in Q2, 2011 with production of approximately 1,000 boe/d.

(3) Equity issues include proceeds of $9.8 million from the exercise of 2.25 million CDE flow-through Warrants in August 2011, proceeds from the bought- deal financing which closed on March 17, 2011 pursuant to which the Company issued 13.4 million common shares and 2.1 million CEE flow-through common shares for total gross proceeds of approximately $45.5 million, proceeds from the issuance of 0.6 million shares pursuant to the exercise of stock options for proceeds of $1.2 million and proceeds from the bought-deal financing which closed on August 18, 2011 pursuant to which the Company issued 12.0 million common shares and 2.1 million CEE flow-through common shares for total gross proceeds of approximately $56.1 million.

(4) Funds flow sensitivity: +/- $1 AECO is $16 million.

15

Decades of Deep Basin experience

Stacked zone potential with >500

drilling locations

Financial capacity

Economic at <$3.00/GJ

Cequence Energy: Worth Discovering

CQE

16

Forward-Looking Information

Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. This information relates to future events or future performance of the Company. Investors are cautioned that reliance on such information may not be appropriate for making investment decisions. Many factors could cause the Company’s actual results, performance or achievements to vary from those described herein. The forward-looking information contained in this presentation is expressly qualified by this and other cautionary statements set forth in the continuous disclosure record of the Company.

17

Appendix

18

Simonette Gething Development

CQE land

CQE Gething rights

Gething gas wells

CQE location • 100 sections with Gething potential

• Typical Gething well drains 250 acres

• 200 plus potential locations

19

Simonette Emerging Nordegg Oil Play

CQE Nordegg rights September 2011

171 gross sections

106 net sections

Land sold at >$1,000.00 per Ha

Organic rich shale with interbeds of phosphatic carbonate and siltstone

Depth: 2,200 – 3,100 metres TOC: 0.55 – 28% (avg. 5%)

Thickness: 21 – 27 metres Pressure: 4,160 psi (0.52 psi/ft)

Log porosity: 5 – 18% Oil gravity: 17 to 41

API

EOG

16 stage completion

11 BOPD (no hours)

AOSC

30 days 78 BOPD

4-11

197 MBO

185 BOPD

PetroBakken

AOSC

AOSC

AOSC

20

AOSC

Apache

19 days 29 BOPD

256 BWPD

Canadian

Coastal

AOSC

AOSC

5 days 500 BOED

Anglo

Canadian

Simonette: The Basis of an Intermediate-Sized Inventory

Deep Basin Gething

Vertical Model

Wilrich HZ Working Model

Montney HZ Working Model

GAS PRICE cdn$/mmbtu $4.00

Reserves per well mboe 340 700 900

Model well costs – drill, case, complete and tie-in

$ millions $2.25 $5.00 $5.50

IP rate (1 month) Boe/d 320 700 800

Average first year rate Boe/d 220 450 500

Natural gas liquids Bbls/mmcf 15 20 45

IRR 78% 75% 90%+

NPV (10% BT) $ millions 2.6 4.4 8.0

F&D $/boe 6.62 7.14 6.11

POTENTIAL LOCATIONS 200 90-180 200+ 21

AECO Wilrich

$4.00/mmbtu Montney

$4.00/mmbtu

NGL Yield 20 bbls/mmcf 45 bbls/mmcf

Per boe Per boe

Plant Gate Price $31.17 $35.86

Royalty (5%) $1.56 $1.79

Operating Cost + Transportation $7.00 $7.00

Operating Netback $22.61 $27.06

F&D (per boe) $7.14 $6.11

Recycle Ratio 3.30 times 4.43 times

Simonette – Model Horizontal Gas Netbacks

Assumes no GORR

22 (1) Utilizing pricing of $4.00/mmbtu AECO and $90/bbl WTI.

Excellent Economics

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

$3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00

Simonette – Half-Cycle Economic Models

23

NP

V1

0 (

$M

)

Gas Price ($/mmbtu)

Financial Highlights

24

Q2 2011 Q1 2011 % Change

Average Daily Production 9,125 8,185 11

Funds flow from operations (1) $12,042 $9,780 23

Per share basic and diluted $0.08 $0.07 14

Operating costs per boe $8.96 $9.15 (2)

G&A per boe $2.37 $2.43 (2)

Capital expenditures $30,604 $23,930 28

Net debt and working capital deficiency (2) $65,147 $44,059 48

Weighted average shares outstanding (basic and diluted)

144,314 131,161 10

(1) Funds flow from operations is calculated as cash flow from operating activities before adjustments for decommissioning liabilities and net changes in non-cash working capital.

(2) Net debt and working capital (deficiency) is calculated as cash, net working capital less commodity contract asset and demand credit facilities and excluding obligations on flow-through shares included with accounts payable and accrued liabilities in the consolidated balance sheet.

0

2,000

4,000

6,000

8,000

10,000

12,000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 Est 2011 Exit

30.22

23.98

19.97

18.63

16.45 15.68

14.06 13.60 13.28 13.28

Corporate Production and Cash Costs

1,317

2,089 2,445

3,197

4,619

7,400

8,185

9,125 9,400

11,000

2009 2010 2011

0

5

10

15

20

25

30

35

$/b

oe

bo

e/d

Natural Gas Oil & NGL Opex, Transport and G&A Expense

25

Contacts: Paul Wanklyn President & CEO pwanklyn@cequence-energy.com David Gillis

Vice President, Finance & CFO dgillis@cequence-energy.com

www.cequence-energy.com

700, 326 11th Avenue SW Calgary AB T2R 0C5

Phone: 403-229-3050 Fax: 403-229-0603