Bonterra Energy Corp. Announces Closing of Strategic Pembina Cardium Asset Acquisition
Bonterra Energy Corp. (www.bonterraenergy.com) (TSX:BNE) is pleased to announce the closing of the previously announced acquisition of certain Cardium focused assets in the Pembina area of Alberta (the “Assets”) from a senior oil and gas producer for $172 million prior to normal closing adjustments, financed mainly through bank debt.
With the closing, Bonterra has acquired approximately 1,800 boe/d of high-netback, low decline, conventional oil and natural gas liquids production that is complementary to the Company’s existing Pembina Cardium operations, as well as approximately 9.9 million boe of total proved and 13.0 million boe of proved plus probable reserves. A significant portion of the acquired land is under waterflood for pressure maintenance, which contributes to the low production decline rate of 7% and is expected to reduce Bonterra’s overall corporate decline rate by approximately 3%. The Assets also offer a sizeable and attractive future drilling inventory, with 136 net potential low-risk, high-quality horizontal drilling locations identified by the Company, of which only twelve have been assigned reserves in the current reserve report.
The Acquisition is consistent with Bonterra’s strategy to capitalize on opportunities to enhance the quality of its asset base, operations and overall returns to the shareholders.
Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia. The shares are listed on The Toronto Stock Exchange under the symbol “BNE”.
Certain statements contained in this release include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. In particular, this press release contains statements regarding the operational, economic and financial impacts of the Transaction to Bonterra, the potential growth opportunities on the Assets and other anticipated benefits to Bonterra of the Transaction. The foregoing statements assume that there will be no changes to the assets and liabilities of Bonterra following the Transaction and that the anticipated benefits of and rationale for the Transaction will be achieved. Many factors could cause the performance or achievement of Bonterra to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Because of the risks, uncertainties and assumptions contained herein, readers should not place undue reliance on these forward-looking statements.
In addition, statements relating to “reserves” are by their nature forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. The recovery and reserves estimates provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Bonterra cautions that its future oil, natural gas and natural gas liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing and amount of future capital expenditures, and other forward-looking information is subject to all of the risks and uncertainties normally incident to the exploration for and development and production and sale of oil and gas.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Bonterra disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Certain information contained herein is based on information and internal estimates provided to Bonterra by the vendor of the Assets. Although Bonterra believes such information is accurate and reliable, at this time such information has not been verified by any independent sources and Bonterra does not make any representations as to the accuracy of such estimates.
The forward-looking information contained in this release is expressly qualified by this cautionary statement.
This news release contains the term boe which has been calculated on the basis of six thousand cubic feet (“mcf“) of gas to one barrel of oil. This conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The term boe may be misleading, particularly if used in isolation.
The forward-looking information contained herein is expressly qualified by this cautionary statement.