CALGARY – Cequence Energy Ltd. (TSX:CQE) has abruptly replaced its chief executive and dismissed two of its vice-presidents as part of a strategic change in direction and cost-cutting efforts due to low natural gas prices.
The company has promoted Todd Brown as CEO, replacing Paul Wanklyn immediately.
Brown has been the company’s chief operating officer since August 2014 and Wanklyn has been CEO since September 2010.
Calgary-based Cequence has also dismissed vice-president of operations Michael Stewart and VP geophysics Stephen Stretch, effective immediately.
David Gillis remains chief financial officer but promoted to executive vice-president.
The company’s board of directors says it believes the change in management is necessary as the company focuses on reducing costs rather than on growth, until commodity prices improve sufficiently.
Cequence also said that it aims to save about $2.7 million in administration and general expenses and other targeted savings throughout 2016. It also expects “minimal” capital spending until the outlook for commodity prices improve.
It had embarked on a strategic review in October but announced on Tuesday that it has evaluated all the proposals that emerged and isn’t pursuing any of them, choosing instead to restructure the management team.
It announced that 2015 production revenue decreased to $80.9 million in 2015, from $136.9 million in 2014. It had a loss $250 million last year, compared with $79.4 million of net income in 2014.
Note to readers: This is a corrected story. An earlier version misstated the company’s 2014 revenue.