Bonterra Energy Corp. Corporate Update
CALGARY, ALBERTA--(Marketwired - Oct. 29, 2015) - Bonterra Energy Corp. (www.bonterraenergy.com) (TSX:BNE) ("Bonterra" or "the Company") is pleased to provide a corporate update with regard to its credit facilities, maintaining its $0.15 monthly dividend per common share and its sustainability analysis during this period of continued low commodity prices.
Credit Facilities Maintained
The Company's lenders have completed their mid-year review and have agreed to maintain the credit facilities at the current $425 million. The loan is revolving to April 29, 2016 with a maturity date of April 30, 2017. As of September 30, 2015 the drawn amount of the banks' loan is $335 million. The Company's total debt including working capital and other debt is approximately $364 million.
- WTI oil prices of U.S. $45 per bbl, a CDN/U.S. dollar rate of $0.75, differential of U.S. $2.00 and a quality adjustment of CDN $3.35 for a realized price for BNE of CDN $54.00 per bbl
- Natural gas liquids (NGL's) prices of CDN $23
- Natural gas prices of CDN $3.00 per mcf which includes a positive heat content adjustment of $0.30
- Average production rate of 13,000 boe/d consisting of 68 percent oil, 6 percent NGL's and 26 percent natural gas
- All in Corporate costs for royalties, operating costs, general/admin costs and interest of CDN $20 per BOE
- Funds flow for a 12 month period of approximately $109 million consisting of commodity sales of $105 million and $4 million from the sale of investments and dividend income
- Dividend payment of $59 million ($0.15 per share monthly dividend per share)
- Capital expenditures of $50 million
- Funds flow will change by $16 million if oil prices change by $5.00 per BOE and natural gas and natural gas liquids prices remain constant
The monthly dividend and capital expenditures are sustainable at the above referenced commodity prices. The capital expenditures are estimated to be sufficient to continue production levels in the range of approximately 13,000 boe/d if there aren't any serious pipeline restrictions, issues with non-operated facilities or voluntary reductions in production due to lower commodity prices. Minor fluctuations over a two or three month period from the above prices will not affect the dividend payments or the capital expenditures. Large price fluctuations or long term minor fluctuations will be dealt with. If funds flow increases the Company may increase capital expenditures, dividends or pay down debt or a combination thereof. If funds flow decreases the Company may decrease capital expenditures or dividends.
As previously stated, the present low commodity prices are a challenge for all companies. The quality of the Company's assets, the large inventory of quality undrilled locations and its cautious approach with regard to the calculation of reserves bodes well for Bonterra on an ongoing basis compared to most of its peers. Management will continue with its month by month review and will make modifications as required.
Thank you all for your understanding and continued support.
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 use of proceeds of the Offering. 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.
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.
The forward-looking information contained in this release is expressly qualified by this cautionary statement.
(October 29, 2015 - 6:30 PM EDT)
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