Click here to close now.

Welcome!

.NET Authors: Aria Blog, Pat Romanski, Elizabeth White, Hovhannes Avoyan, Sanjeev Sharma

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.

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
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
HP and Aruba Networks on Monday announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies' boards of directors have approved the deal. "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," said Meg Whitman, Chairman, President and Chief Executive Officer of HP...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to make sense of it all.
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics archive, in his session at @ThingsExpo, Jim Kaskade, Vice President and General Manager, Big Data & Ana...
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
SYS-CON Events announced today that Vitria Technology, Inc. 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. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...