Press Release: KANATA : 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.