January 2012

Corporate Profile

Trading Symbol TSX: CQE

Current production 10,600 boepd

52-week trading range $1.96-$4.70

Shares outstanding FD 177 million

Insider ownership 11% FD

Market capitalization (1) $460 million

September 30, 2011 net debt (2) $7.7 million

Bank line $110 million (1) Based on Cequence stock price of $2.85 (2) September 30, 2011 net debt 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.

2

Recent highlights

3

• Simonette 4-4 Montney gas/condensate well (100% WI) producing with 15 day IP rate of 4.8 mmcfd and 216 b/d NGLs

• 3 (1.5 net) Montney delineation wells currently drilling

• Two Simonette Montney oil wells completed in Q4 (1-22 and 1-13) tested individually at rates of up to 265 b/d (> 45 API). Currently installing pumpjacks to evaluate future potential

• Potential Simonette Dunvegan oil discovery at 14-23 – cleaning up frac prior to evaluation

• Expanded our Simonette land base by 10% with a recent farm-in. Currently control more than 220 gross sections (average WI 75%)

• Currently constructing 120 mmcfd meter station and connection to Alliance/Aux Sable Deep Cut facility. Startup expected in April 2012 resulting in increased netbacks at Simonette

2012 Plan

• Continue to evaluate our Deep Basin resource base and expand NGL rich opportunities in new zones

• Protect our balance sheet in current low gas price environment with prudent capital spending

• Control infrastructure in our core area to drive operating costs to lowest possible level

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Deep Basin – Continued Focus on Simonette

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Rely on technical strength and experience of our team

• Stacked resource style plays with NGLs in all formations drives our economics and strategy

Major focus of 2012 budget

• Montney - Continue to evaluate our gas/condensate discovery

• Focus on drilling land retention/delineation wells

• Capital focus on Montney gives us a free look at shallower zones and preserves critical land

• Evaluate potential Montney oil discovery in CQE wells on trend with competitor discovery in North Simonette

• Dunvegan - evaluate potential oil discovery at 14-23 well and drill a second well in gas/condensate trend to west

• Falher - test the gas/condensate potential on farm-in lands

• Infrastructure capital will increase operating efficiency

• Target OPEX <$4.00 per boe at Simonette

PEACE RIVER

EDMONTON

GRANDE PRAIRIE

BRITISH

COLUMBIA

ALBERTA

Focused on the Deep Basin

ALBERTA

Peace River Arch/NE BC

2011 Estimate: 3,450 boe/d

Deep Basin: Simonette-Kaybob

2011 Estimate: 5,500 boe/d

Other Areas

2011 Estimate: 100 boe/d

6

Trilogy Plant

CQE WI = 25%

Capacity 10 MMcf/d

Keyera Processing Facility

Capacity 153 MMcf/d

Available Capacity 90 MMcf/d

Cequence Alliance

Meter Station

Capacity 120 MMcf/d

To Aux Sable

Deep Cut Plant

Chicago, Illinois

Simonette: A Concentrated Land Base

7

6 miles

Control 220 gross operated sections (avg. 75% W.I.) including new farm-in

Extensive 3D seismic coverage critical to evaluation and horizontal well path planning

Aux Sable Rich Gas Premium Agreement expected start-up in April, 2012 and expected to provide:

• Increase in realized product price

• Reduction in processing fees

• Resulting increase to recent netbacks of approximately $3.00 per boe

• Take-away capacity ~ 120 mmcf/d

CQE land

Farm-in land

3D seismic

CQE well

CQE field compressor

CQE Gathering system

CQE Planned gathering system

Alliance pipeline

Cequence land

Farm-in land

Stacked Zones Expose Significant Resources

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

8

6 miles

Simonette Montney Liquids-Rich Resource Play

9

CQE land

CQE Montney rights

Planned CQE 2012 location

CQE Montney gas well

Industry Montney Hz well

Gas/Condensate Prone

6 miles

CQE16-12 Potential

Oil Discovery-testing

CQE 1-22 Potential Oil Discovery

Initial Test Rate

265 bbls/d oil/condy plus 1.5 mmcf/d

Recent rates

200-300 bpd oil

CQE 4-4 15 day IP

4.8 mmcf/d plus

216 bbls/d NGLs 20.4 mmcf/d

568 bpd condy

10.2 mmcf/d

437 bpd condy

2.4 mmcf/d

50 bpd condy 14.3 mmcf/d

241 bpd

condy

5.2 mmcf/d

19 bpd condy

14.4 mmcf/d

114 bpd condy

Gas/Condensate trend continues to deliver excellent results

• Recent 4-4 has 15 day IP rate of 4.8 mmcf/d and 216 b/d NGLs

• Plan to de-risk 35 net sections by Q1 (out of total 50 net sections in gas/condensate trend)

• CQE estimates net potential 2 TCF OGIP and 90 mmbbls liquids

• Numerous high rate competitor wells surrounding Simonette

New Oil trend developing in North Simonette – competitor reported IP rates up to 300 bopd

• Currently evaluating two CQE oil/ condensate rich wells completed in Q4/11

• 20 net sections in potential oil trend 4.1 mmcf/d

48 bpd condy

Drilling

Drilling

Drilling

AECO $3.00/mmbtu $4.00/mmbtu

WTI $90/bbl $90/bbl

NGL Yield 45 bbls/mmcf 45 bbls/mmcf

Per boe Per boe

Plant Gate Price $30.66 $35.86

Royalty (5%) $1.53 $1.79

Operating Cost + Transportation $7.00 $7.00

Operating Netback $22.13 $27.06

Operating Netback post Aux Sable $24.88 $30.31

F&D (per boe) $6.11 $6.11

Recycle Ratio 4.1 times 4.9 times

Simonette – Montney Development Model Delivers Strong Netbacks at $3.00 gas

10

Excellent Economics

*Assumes no GORR

4-4 15 day IP rate

4.8 mmcf/d

216 bbls/d NGLs

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 Gas/Condensate Wells 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

11

Simonette Wilrich/Falher Liquids-Rich Resource Play

12

CQE land

CQE Wilrich/Falher rights

Farm-in land

Planned CQE 2012 location

CQE Wilrich/Falher gas well

Industry Wilrich Hz well

Industry Wilrich Hz location

6 miles

1-19 Falher Hz location

13-34 exploration step out

IP 15

1.1 mmcf/d

22 bbls/d NGLs

Falher Play

• Plan to drill first horizontal commitment well in Q1 offsetting vertical test of 1.5 mmcfd

• Expect high liquids yield natural gas and over-pressuring

• Analogous to the prolific Musreau and Kakwa Falher pools

Wilrich Play

• 60+ net sections of total Wilrich potential

• 20 sections de-risked through initial drilling

• Three well program in Q3 extended the pool to NW and further delineated the southern edge

• Deeper Montney drilling and new 3D seismic will add further stratigraphic information to SE of main pool

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 Gas/Condensate Wells CQE Horizontal 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

13

Dunvegan Oil and Gas/Condensate Play

14

CQE land

CQE Dunvegan rights

Farm-in land

CQE Dunvegan location

Vertical Dunvegan channel completion

Industry Dunvegan Hz well

Industry Dunvegan Hz location

6 miles

14-23 Potential Oil

Discovery-testing

New Simonette oil pool 42º API

Well IP 180 b/d and 600 mcf/d

Dunvegan horizontal location Q3 2012 –

offsets avg. vertical gas test 2.4 mmcf/d

and 240 b/d condensate

Resthaven gas/condensate

pool - 6 mo Hz IP rates

IP rates up to 6 mmcf/d

gas and liquids

• Potential new oil discovery at 14-23 (50% WI)

• Currently testing well on cleanup

• Recent farm-in on 20 section land block adjacent to Simonette

• Potential gas/condensate horizontal well to be drilled in Q3 offsetting Resthaven Dunvegan gas/condensate pool

Montney and Wilrich Simonette Model Economics

Wilrich

Montney

Production Potential Gas Liquids ORGIP

Dev. 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 Development Model @ $4.00/mmbtu

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*Economics calculated pre Aux Sable tie-in

Dunvegan

Falher

Wilrich

Gething

Montney

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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

?

?

6 miles

Cequence Energy Results and Guidance

2010 2011 Guidance

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

Exit rate

4,451 7,485

9,050

11,000

Capital expenditures $64.1 MM $150 MM

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

Equity issued (3) $65 MM $116 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 161.9 MM

(1) 87% natural gas

(2) Includes the disposition 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) Guidance issued November 2011

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

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Decades of Deep Basin experience

Stacked zone potential with >500

drilling locations

Financial capacity

Economic at <$3.00/GJ

Cequence Energy: Worth Discovering

CQE

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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.

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Appendix

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Simonette-Resthaven: A Great Postal Code

Horizontal Well Activity

Resthaven

Celtic / Paramount

Montney

Kakwa /

Musreau

Paramount

Falher

Resthaven

Paramount

Dunvegan

Resthaven

Encana

Wilrich Leland

Encana

Falher

Kakwa / Chime

Encana / Tourmaline

Falher / Wilrich

North Simonette

Apache-AOSC

Montney

Simonette

CNRL

Dunvegan

Simonette

COP

Dunvegan

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CQE land

Farm-in land

Dunvegan wells

Wilrich-Falher wells

Montney wells

6 miles

Other Stacked Cretaceous Potential

Dunvegan

Falher

Bluesky / Gething

22

• Dunvegan –potential oil discovery at 14-23

• Falher prospect will be drilled in Q1

• Montney drilling will evaluate Gething on CQE lands

Simonette Gething Development

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CQE land

Farm-in land

CQE Gething rights

Gething gas wells

6 miles

• 100 sections with Gething potential

• Typical Gething well drains 250 acres with EUR of 2 Bcf

• 200 plus potential locations

Alberta Deep Basin 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 200 120-180 200+

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*Economics calculated pre Aux Sable tie-in

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 Development Economic Models

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NP

V1

0 (

$M

)

Gas Price ($/mmbtu)

*Economics calculated pre Aux Sable tie-in

Financial Highlights

26

Q3 2011 Q2 2011 % Change

Average Daily Production 9,833 9,125 8

Funds flow from operations (1) $10,438 $12,042 (13)

Per share, basic and diluted $0.07 $0.08 (13)

Operating costs per boe $9.36 $8.96 4

G&A per boe $2.10 $2.37 (11)

Capital expenditures $31,222 $16,470 90

Net debt and working capital (deficiency) (2) $7,745 $65,147 (88)

Weighted average shares outstanding (basic and diluted)

152,549 144,314 6

(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.

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

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

www.cequence-energy.com

3100, 525 - 8th Avenue SW Calgary AB T2P 1G1

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