KANATA Energy Group Announces New $54 Million Producer Partnership

CALGARY, ALBERTA--(Marketwired - May 26, 2015) - KANATA Energy Group Ltd. ("KANATA") is pleased to announce that it has reached agreement with Cequence Energy Ltd. ("Cequence") to acquire a 50% share of their Simonette gathering and processing facility in west central Alberta. The facility has a capacity of 100 mmcfd and is connected to the Alliance pipeline system. As operator of the joint venture, KANATA will lead the construction of a new 120 mmcfd refrigeration facility that will have the capability of delivering processed gas to both the Alliance and TransCanada pipeline systems. The new refrigeration facility has received regulatory approval with engineering and fabrication of major equipment well underway. The expansion is expected to be operational in the first quarter of 2016.

"We are very excited to work in partnership with Cequence to develop the prolific Simonette area. We look forward to a long term and mutually beneficial relationship and are positioned to supply the area's growing demand for gathering and processing infrastructure. The Simonette facility will provide third parties with an alternative processing solution," said Kevin Cumming, President and Chief Executive Officer at KANATA. "The partnership allows for Cequence to retain control as co-owner of the facility while relying on KANATA to deliver service excellence."

"Cequence is pleased with this midstream partnership and believes KANATA's responsive, flexible and customer-focused approach to midstream services will provide area growth opportunities for both parties," said Paul Wanklyn, President of Cequence.

Located in Calgary, Alberta, KANATA Energy Group Ltd. is a privately funded midstream infrastructure and service company with equity financing from a group of leading private investors including ARC Financial Corp., Energy Spectrum Capital and Teachers' Private Capital. Focused on the acquisition, construction and operation of gathering, processing and liquids extraction facilities in western Canada, KANATA is committed to being the most responsive and customer focused infrastructure supplier in Canada's oil and gas industry.

FOR FURTHER INFORMATION PLEASE CONTACT:
KANATA Energy Group Ltd.
Kevin Cumming
President & Chief Executive Officer
(587) 774-7000
info@kanataenergy.com


KANATA Energy Group Ltd.
Randy Hughes
Vice President Business Development
(587) 774-7000
info@kanataenergy.com