CALGARY, ALBERTA–(Marketwired – Jan. 29, 2015) – Bonterra Energy Corp. (www.bonterraenergy.com) (TSX:BNE) (“Bonterra” or “the Company”) today announces changes that are necessary to ensure the Company maintains its financial strength and long-term objectives during this period of extreme market volatility.
Based on current commodity pricing assumptions, the Company is taking the following steps:
- Capital expenditures for 2015 are currently budgeted to be approximately $58 million compared to the 2014 capital budget of $140 million;
- Reducing the monthly dividend to $0.15 per share ($1.80 per share annually) from current dividend of $0.30 per share ($3.60 per share annually) commencing with the January dividend payable February 27, 2015;
- First quarter 2015 budget of approximately $20 million with capital primarily directed to complete and bring on production nine gross (7.4 net) wells, including six wells that were pre-drilled in late 2014, and three wells that were drilled early in 2015;
- At the end of first quarter 2015 the Company will have an inventory of eight drilled wells, all of which can be completed as commodity prices and project economics warrant; and
- Continue to thoroughly review all expenditure areas, including capital expenditures, operating costs and general and administration costs.
Operationally, Bonterra is very pleased with its recent performance, including achieving 2014 average production volumes of approximately 13,100 boe/day, which exceeded the 2014 forecasted annual guidance of 12,400 to 12,700 boe/d.
The Company will continue to assess its results on a quarterly basis and will adjust its capital expenditures, dividends and overall operations in accordance with future commodity prices. Consistent with its underlying corporate strategy, the Company’s priorities remain focused on maintaining financial flexibility while positioning Bonterra to achieve long-term growth in production, reserves and cash flow per share and overall returns to shareholders.
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, 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. Forward-looking information in this release includes, but is not limited to: expected cash provided by continuing operations; cash dividends; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control.
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 herein is expressly qualified by this cautionary statement.
The TSX does not accept responsibility for the accuracy of this release.
Bonterra Energy Corp.
George F. Fink
Chairman and CEO
Bonterra Energy Corp.
Robb D. Thompson
CFO and Secretary
Bonterra Energy Corp.
(403) 265-7488 (FAX)