CALGARY, ALBERTA–(Marketwired – May 31, 2016) – Bonterra Energy Corp. (TSX:BNE) (“Bonterra” or the “Company”) today announces that following a semi-annual review of its credit facilities and in light of current market conditions, its borrowing base has been adjusted by approximately 10% from $425 million to $380 million, comprised of a $330 million syndicated revolving credit facility, and a $50 million non-syndicated revolving credit facility. The revolving period on the facilities expires on April 30, 2017.
As at May 31, 2016, Bonterra had approximately $340 million drawn on the revised $380 million credit facilities, providing the Company with sufficient liquidity and financial flexibility to execute on its business plan. Bonterra intends to continue repaying debt through the balance of the year.
Based on the Company’s current assumptions regarding commodity prices, as well as budgeted production levels for the balance of 2016, pro forma funds flow from operations is expected to exceed total expenditures including capital investments and monthly dividend payments. As debt levels decline and commodity prices continue to strengthen, Bonterra’s sustainability will be further enhanced, enabling the Company to consider increased capital spending or potentially increasing the dividend.
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”.