|By Marketwired .||
|January 9, 2013 06:43 PM EST||
CALGARY, ALBERTA -- (Marketwire) -- 01/09/13 -- Bonavista Energy Corporation (TSX:BNP) ("Bonavista") announces that its Board of Directors has approved a reduction in the monthly dividend from $0.12 per share to $0.07 per share, beginning with the payment due February 15, 2013 to common shareholders of record on January 31, 2013, with an ex-dividend date of January 29, 2013.
Despite encouraging signs of recovery in the fall of 2012, North American natural gas fundamentals have deteriorated significantly since that point. Driven by widespread technological success in the development of natural gas from unconventional reservoirs, the price curve for North American natural gas has shifted materially lower over the past two years. To compound this natural gas supply imbalance, a similar phenomenon has been evolving with the supply of natural gas liquids and crude oil. Unfortunately, producers in western Canada have been exposed to unusually high differential pricing for their product resulting from insufficient export alternatives. The western Canadian oil and gas business will continue to experience excessive pressure throughout 2013 until structural adjustments are realized.
Forward commodity prices are below a level that provides adequate cash flow to sustain our prior monthly dividend, capitalize on our numerous opportunities, and maintain a strong balance sheet. Notwithstanding the implementation of several initiatives to preserve our prior dividend throughout 2012, current forward commodity prices do not allow for these activities to continue under our "dividend plus growth" business model. The long-term goal of this business model remains intact with a commitment to generate an attractive return for our shareholders through a sustainable balance between dividends and corporate growth.
To deliver on this model, Bonavista embarked upon a strategy five years ago to assemble a concentrated portfolio of assets in highly prospective, multi-zone areas that will create maximum value for our shareholders. The approach was to extract incremental value by enhancing both capital and operating efficiencies through control of operations, consolidation and the development of low-risk, scalable opportunities. We have validated our commitment to this strategy over the past twelve months illustrated by acquiring two synergistic assets in our Deep Basin area, and by divesting of numerous non-core properties that were unable to compete for capital allocation. This acquisition and divestiture activity, coupled with our concentrated exploration and development efforts will result in the allocation of greater than 90% of the 2013 capital budget in two areas: the Deep Basin and West Central areas of Alberta. Complementing this focused acquisition and development activity, Bonavista will continue to optimize its asset portfolio and is currently in the process of marketing additional non-core assets for sale with a bidding process due in February 2013.
Today, Bonavista's asset base and drilling inventory is of the highest quality it's been since inception of the company. We have improved the capital efficiency of our key development plays and we continue to find ways to add discipline to our cost structure. Most importantly, we have an experienced, entrepreneurial team driven by profitability and results.
Synergistic Deep Basin Acquisition
Bonavista today completed another synergistic acquisition in its Deep Basin area for a closing purchase price of $72.5 million. This acquisition is consistent with our strategy of acquiring high quality, multi-zone oil and liquids rich natural gas assets in a region proximal to existing operations where we have identified opportunities to optimize netbacks through lowering operating costs and utilizing proven technology to enhance the value of existing reservoirs.
Highlights of the acquisition include:
-- Increases our land position in the Deep Basin by approximately 18% (40,000 net acres) providing an excellent overlay with our existing land position; -- Increases production by 2,450 boe per day (77% natural gas weighted) of low decline production with the capability of increasing production by 350 boe per day by the end of January 2013 through the completion of an existing Rock Creek horizontal well; -- Adds approximately 12.5 mmboe of proven and probable reserves (54% proven); -- Increases our development portfolio by 19 gross (17.2 net) horizontal drilling locations, nine of which are targeting a Rock Creek light oil pool. This pool is currently underdeveloped with less than a 2% recovery factor to date, producing at a 15% decline rate. Four horizontal wells will be drilled in this pool in 2013; -- Adds two wholly-owned natural gas plants with approximately 24 mmcf per day of capacity and 130 kilometers of infrastructure augmenting Bonavista's existing operational presence in the area. This alignment of operations will result in a 25% reduction in the current operating costs of these properties; -- Adds $20.5 million in net operating income in 2013 with the capability of growing substantially in future years; and -- Collectively, acquisition metrics are attractive at $29,600 per boe per day, $12.00 per boe, including future development costs and 3.5 times 2013 cash flow based on forward commodity pricing.
2013 Capital Budget and Upwardly Revised Production Guidance
Bonavista's 2013 net capital spending plans remain consistent with prior guidance at $423 million; however, we have incorporated certain budget adjustments to accommodate approximately $20 million of development expenditures allocated to the Deep Basin properties we have just acquired. We expect our 2013 capital program will result in average production of between 73,500 and 74,500 boe per day representing a modest increase over prior guidance and resulting in 6-7% growth over 2012. Similarly, we expect our 2013 year-end debt to forward 2014 cash flow ratio to improve to 2.0:1 based on current strip commodity pricing.
Through the consistent application of our proven strategy, we are confident that the current measures we are taking will not only result in additional financial flexibility in the short-term but lead to a stronger and more profitable company in the long-term. As in prior years, we will continue to monitor the economic landscape, commodity prices and our drilling results and adjust our capital spending levels as conditions warrant. Additionally, we remain attentive to an increasing number of incremental acquisition opportunities which complement our core regions and enhance our capabilities to create value.
Forward Looking Statements
Corporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, particularly those pertaining to cash dividends, production volumes, commodity prices, operating costs and drilling results, which are considered reasonable by Bonavista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by Bonavista that actual results achieved during the forecast period will be the same in whole or in part as those forecasts.
Keith A. MacPhail
Jason E. Skehar
President & CEO
Glenn A. Hamilton
Senior Vice President & CFO
Bonavista Energy Corporation
1500, 525- 8th Avenue SW
Calgary, AB T2P 1G1
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
Apr. 26, 2015 01:00 PM EDT Reads: 1,801
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
Apr. 26, 2015 12:00 PM EDT Reads: 1,869
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
Apr. 26, 2015 12:00 PM EDT Reads: 1,678
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Apr. 26, 2015 12:00 PM EDT Reads: 2,329
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
Apr. 26, 2015 12:00 PM EDT Reads: 1,913
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
Apr. 26, 2015 11:30 AM EDT Reads: 4,429
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
Apr. 26, 2015 11:00 AM EDT Reads: 2,573
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
Apr. 26, 2015 11:00 AM EDT Reads: 2,117
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Apr. 26, 2015 11:00 AM EDT Reads: 2,105
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
Apr. 26, 2015 11:00 AM EDT Reads: 2,117
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
Apr. 26, 2015 11:00 AM EDT Reads: 1,758
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
Apr. 26, 2015 11:00 AM EDT Reads: 1,478
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
Apr. 26, 2015 11:00 AM EDT Reads: 1,633
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
Apr. 26, 2015 10:45 AM EDT Reads: 1,434
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
Apr. 26, 2015 10:30 AM EDT Reads: 1,767
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are configurable to any form factor or custom configuration. AIC leads the industry with nearly 20 years of ...
Apr. 26, 2015 10:00 AM EDT Reads: 5,051
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Software Development, Product Management and Product Marketing, applied across Wireless, Unified Communic...
Apr. 26, 2015 10:00 AM EDT Reads: 1,729
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
Apr. 26, 2015 10:00 AM EDT Reads: 3,039
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Apr. 26, 2015 10:00 AM EDT Reads: 2,892
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Apr. 26, 2015 10:00 AM EDT Reads: 4,191