Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

News Feed Item

Bonterra Energy Corp. Announces Record Production in Fourth Quarter and Full Year 2012 and Provides an Operational Update

CALGARY, ALBERTA -- (Marketwire) -- 02/06/13 -- Bonterra Energy Corp. (Bonterra) (www.bonterraenergy.com) (TSX:BNE) is pleased to provide an operational update including 2012 highlights, the results of its independent reserve report prepared by Sproule Associates Limited with an effective date of December 31, 2012 and its 2013 budget and guidance.

In 2012, Bonterra maintained its focus on providing investors with a sustainable pace of development, continued growth on a per share basis and stable monthly income through its dividend policy paying out $3.12 per share during the year. The company will maintain this corporate strategy in 2013 by continuing to pursue the development of its lower risk, high return opportunities; predominantly through its horizontal drilling program on its significant Cardium light oil play.

In addition, Bonterra recently completed the acquisition of Spartan Oil Corp. (Spartan), increasing its current production to approximately 13,500 BOE per day that due to a present flush production will reduce to an average of approximately 12,000 BOE per day from the January 25, 2013 acquisition date to December 31, 2013. The company's large, concentrated asset base in the Cardium now totals 250.3 gross (193.7 net) sections, positioning Bonterra as one of the most dominant light-oil, dividend paying companies in the Canadian energy sector. The company currently estimates that it has a greater than 10 year drilling inventory (using four wells per section) that will allow Bonterra to sustain its current business model offering both solid growth and yield to its shareholders.

2012 Operational Highlights

--  Record average daily production for the full year of 6,727 barrels of
    oil equivalent (BOE) per day (67 percent oil and liquids), an increase
    of 6.0 percent over the same period in 2011. 
--  Record average daily production of 7,728 BOE per day in the fourth
    quarter, an increase of 14.8 percent when compared to the fourth quarter
    of 2011. 
--  Production per share increased to 0.124 BOE per share, an increase of
    4.2 percent over 2011. 
--  Proved plus Probable (P+P) reserves of 45.0 million BOE (approximately
    75 percent oil and liquids), a 9.4 percent increase over December 2011
    reserves of 41.1 million BOE. 
--  Added a total of 6.3 million BOE (P+P) reserves which equates to 2.5
    times 2012 production. 
--  Reserves per share (P+P) increased 7.0 percent to 2.28 BOE per share
    compared to 2.13 BOE per share in the prior year. 
--  Reserve life index of 18.0 years on P+P basis and 13.7 years on a proved
    basis continues to remain above industry average.

The Company has not released its audited 2012 financial results therefore the numbers provided above are currently estimates and unaudited.

2013 Corporate Guidance

Bonterra closed the acquisition of Spartan in January, 2013 and the following guidance is based on the combined entity.

--  The Board of Directors has approved a capital development program of
    $90.0 million which mainly targets light oil prospects through its
    Cardium horizontal drill program.

--  Currently 29 gross (28.1 net) operated wells are planned. Bonterra will
    also participate in drilling 13 gross (4.3 net) non-operated wells
    during 2013.

--  Bonterra's full year production levels are expected to average between
    12,000 and 12,200 BOE per day. 

--  Operating costs are expected to average approximately $15.00 per BOE on
    an annualized basis.

--  The dividend payout ratio is estimated to range between 50 and 65
    percent of funds flow in 2013. As previously announced, Bonterra will be
    increasing the dividend to $0.28 per share beginning with the dividend
    that will be paid on March 31, 2013. Bonterra's Board of Directors and
    management will continue to take into account production volumes and
    commodity prices in determining monthly dividend amounts and will
    consider increasing the dividend should crude oil pricing remain
    favourable coupled with anticipated production increases.

--  Bonterra's present net debt to cash flow from operations on a pro forma
    basis is approximately 1.0:1.0. 

--  Bonterra has approximately $570 million in tax pools, extending the
    company's estimated tax horizon to 2016. 

Bonterra's capital development program may be affected by items such as drilling results, commodity prices, and industry, regulatory and economic conditions. The Board of Directors and management will regularly review the capital program during the year and will make any adjustments to the amount and targets if required. The corporate guidance for 2013 is based on estimated future crude oil and natural gas prices and as such, guidance estimates may fluctuate with changes in commodity prices. Capital expenditure guidance excludes potential acquisitions which will be separately considered and evaluated.

Well Positioned for Continued Growth in 2013

In 2012, Bonterra's focus to developing its Cardium acreage shifted to main pool development. The company drilled 32 gross (22.6 net) horizontal wells during the year. Bonterra has identified 600 gross (464 net) possible horizontal locations within its acreage. 105 gross (80.8 net) horizontal proved undeveloped locations are reflected in Bonterra's 2012 reserve report constituting a three-year drilling program. Bonterra intends to focus the majority of its $90 million 2013 capital program on realizing value from its Cardium assets through a sustainably paced horizontal drill program.

Bonterra closed the acquisition of Spartan on January 25, 2013. The acquisition advances Bonterra's strategic objective to maintain and consolidate its position in the Cardium while continuing to exploit this large resource play. The Spartan properties are a strong geographical fit to Bonterra's asset base, have significant operational synergies and provide additional drilling inventory over the long-term. Bonterra has completed extensive geological mapping of the Spartan land base and have fully integrated the assets into its capital program. The Spartan assets are expected to increase the company's liquids weighting and the corporate production profile in 2013 is anticipated to be approximately 75 percent light oil and natural gas liquids which should result in increased netbacks for the combined entity.

Bonterra has continued to improve and refine its development of the Cardium to both increase well performance and reserve recoveries while minimizing costs. In 2012, the company transitioned to water-based fracs which has significantly reduced overall well costs and increased per well production results. In 2013, Bonterra is currently targeting drilling, completion, equipping and tie-in costs to average approximately $2.7 million per well.

Full year production levels in 2013 are expected to average in a range of 12,000 to 12,200 BOE per day. Bonterra intends to manage its corporate decline through the prudent use of capital and selective timing of its drilling program over the course of the year to deliver sustainable and consistent growth to its shareholders while continuing to provide income in the form of its monthly dividend.

Corporate Reserves Information (Prior to the Acquisition of Spartan Oil Corp.)

Bonterra engaged the services of Sproule Associates Limited to prepare a reserve evaluation with an effective date of December 31, 2012. The gross reserve figures from the following tables represent Bonterra's ownership interest before royalties and before consideration of the Company's royalty interests. Tables may not add due to rounding.

Summary of Gross Oil and Gas Reserves as of December 31, 2012

                                        Light and           Natural         
                                           Medium Natural       Gas         
                                              Oil     Gas   Liquids   BOE(1)
Reserve Category:                          (Mbbl)   (MMcf)   (Mbbl)   (MBOE)
----------------------------------------------------------------------------
PROVED                                                                      
  Developed Producing                    14,415.7   33,037  1,365.7 21,287.6
  Developed Non-Producing                   366.3    2,629     51.8    856.3
  Undeveloped                             8,151.6   13,592    573.5 10,990.4
----------------------------------------------------------------------------
TOTAL PROVED                             22,933.6   49,258  1,991.0 33,134.3
PROBABLE                                  8,013.1   18,963    724.0 11,897.6
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE               30,946.7   68,221  2,715.0 45,031.9
----------------------------------------------------------------------------

Reconciliation of Company Gross Reserves by Principal Product Type as of December 31, 2012

                                                                            
                         Light and Medium Oil and                           
                              Natural Gas Liquids               Natural Gas 
----------------------------------------------------------------------------
                                                                            
                                      Proved plus               Proved plus 
                              Proved     Probable       Proved     Probable 
                              (Mbbl)       (Mbbl)       (Mmcf)       (Mmcf) 
----------------------------------------------------------------------------
December 31, 2011           21,160.1     30,492.4       41,822       63,941 
 Extension                   1,142.7      1,403.6        1,279        1,624 
 Improved Recovery           4,482.4      5,792.5        7,769       10,039 
 Technical Revisions          (883.1)    (3,470.0)         403       (5,052)
 Discoveries                       -            -            -            - 
 Acquisitions                  770.0      1,200.3        2,685        3,769 
 Dispositions                      -            -            -            - 
 Economic factors             (158.7)      (168.4)        (564)      (1,964)
 Production                 (1,588.8)    (1,588.8)      (4,136)      (4,136)
----------------------------------------------------------------------------
December 31, 2012           24,924.6     33,661.7       49,258       68,221 
----------------------------------------------------------------------------

                                                  
                                                  
                                           BOE(1) 
--------------------------------------------------
                                                  
                                      Proved Plus 
                              Proved     Probable 
                              (MBOE)       (MBOE) 
--------------------------------------------------
December 31, 2011           28,130.4     41,149.2 
 Extension                   1,355.9      1,674.3 
 Improved Recovery           5,777.2      7,465.7 
 Technical Revisions          (815.9)    (4,312.0)
 Discoveries                       -            - 
 Acquisitions                1,217.5      1,828.5 
 Dispositions                      -            - 
 Economic factors             (252.7)      (495.7)
 Production                 (2,278.1)    (2,278.1)
--------------------------------------------------
December 31, 2012           33,134.3     45,031.9 
--------------------------------------------------

Summary of Net Present Values of Future Net Revenue as of December 31, 2012

                                                    Net Present Value Before
                                                                Income Taxes
                                                  Discounted at (% per Year)
($ Millions)                                            0%       5%      10%
----------------------------------------------------------------------------
Reserve Category:                                                           
----------------------------------------------------------------------------
PROVED                                                                      
  Developed Producing                              841,883  542,926  406,536
  Developed Non-Producing                           26,822   16,496   11,488
  Undeveloped                                      393,061  191,499   96,203
----------------------------------------------------------------------------
TOTAL PROVED                                     1,261,766  750,921  514,227
PROBABLE                                           614,596  235,981  118,681
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE                       1,876,362  986,902  632,909
----------------------------------------------------------------------------

Finding, Development and Acquisition (FD&A) Costs

The Company has historically been active in its capital development program. Over three years, Bonterra has incurred the following FD&A (3) costs excluding Future Development Costs:

                                2012                                        
                                FD&A     2011 FD&A    2010 FD&A             
                            Costs per    Costs per    Costs per   Three Year
                         BOE(1)(2)(3) BOE(1)(2)(3) BOE(1)(2)(3)   Average(4)
----------------------------------------------------------------------------
Proved Reserve Net                                                          
 Additions              $       16.05$       33.22$       13.89$       16.22
Proved plus Probable                                                        
 Reserve Net Additions  $       13.64$       15.38$       13.02$       14.79
----------------------------------------------------------------------------

Over three years, Bonterra has incurred the following FD&A (3) costs including Future Development Costs:

                                2012                                        
                                FD&A     2011 FD&A    2010 FD&A             
                            Costs per    Costs per    Costs per   Three Year
                         BOE(1)(2)(3) BOE(1)(2)(3) BOE(1)(2)(3)   Average(5)
----------------------------------------------------------------------------
Proved Reserve Net                                                          
 Additions              $       20.91$       57.53$       21.98$       19.47
Proved plus Probable                                                        
 Reserve Net Additions  $       21.62$       35.40$       19.19$       17.92
----------------------------------------------------------------------------

(1) Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

(2) The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

(3) FD&A costs are net of proceeds of disposal and the FD&A costs per BOE are based on reserves acquired net of reserves disposed of.

(4) Three year average is calculated using three year total capital costs and reserve additions on both a Proved and Proved plus Probable basis.

(5) Three year average is calculated using three year total capital costs and reserves additions on both a Proved and Proved plus Probable basis plus the average change in future capital costs over the three year period.

Certain financial and operating information, such as production information, finding and development costs and net asset values, included in this press release for the quarter and year ended December 31, 2012 are based on estimated unaudited financial results for the year and are subject to the same limitations as discussed under Forward Looking Statements set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2012 and changes could be material. All reserve numbers provided above are Bonterra's interest before royalties.

It should not be assumed that the estimates of future net revenue presented in the above tables represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. Estimates of reserves and future net revenues for individual properties may not reflect the same confidence level as estimates of reserves and future net revenues for all properties due to the effects of aggregation.

Caution Regarding Engineering Terms:

Disclosure provided herein in respect of barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of 6 MCF to 1 barrel has been used in all cases in this disclosure. This BOE conversion ratio is based on an energy equivalency conversion method primarily available at the burner tip and does not represent a value equivalency at the wellhead.

Caution Regarding Forward Looking Information:

Certain information set forth in this press release, including management's assessment of Bonterra's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Bonterra's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Bonterra's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements, and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bonterra will derive therefrom. Bonterra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:
Bonterra Energy Corp.
George F. Fink
Chairman and CEO
(403) 262-5307
(403) 265-7488 (FAX)

Bonterra Energy Corp.
Robb M. Thompson
CFO and Secretary
(403) 262-5307
(403) 265-7488 (FAX)

Bonterra Energy Corp.
Kirsten Lankester
Manager, Investor Relations
(403) 262-5307
(403) 265-7488 (FAX)
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices t...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning 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 busin...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.