CALGARY, ALBERTA–(Marketwired – Aug. 26, 2014) – Bonterra Energy Corp. (www.bonterraenergy.com) (TSX:BNE) has been notified by the Canada Revenue Agency (CRA) that Bonterra’s 2009 taxation year has been reassessed related to the 2008 conversion of Bonterra Energy Income Trust to a corporation and the elimination of certain tax pools. The reassessment issued for 2009 disallows non-capital losses from prior years, and results in Federal Part 1 tax owing of $10,907,471 and arrears interest of $2,757,416.60 for a total balance owing of $13,664,887.60.
Management remains of the opinion, that after careful consideration and consultation at the time of the conversion, Bonterra’s subsequent tax returns were correct as filed. Management will vigorously defend Bonterra’s tax filing position. Any amounts paid to the CRA in connection with such reassessment would be refunded on a successful appeal of the reassessment.
Management confirms that the reassessment will not affect the Corporation’s strategy going forward, nor the amount of the monthly dividend distributions.
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, 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: the anticipated results of any appeal; expected cash dividends; future capital expenditures, including the amount and nature thereof; 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
CEO and Chairman of the Board
(403) 265-7488 (FAX)
Bonterra Energy Corp.
Robb D. Thompson
CFO and Secretary
(403) 265-7488 (FAX)