CALGARY, Alberta, Feb. 07, 2018 (GLOBE NEWSWIRE) — Bonterra Energy Corp. (www.bonterraenergy.com) (TSX:BNE) (“Bonterra” or “the Company”) is pleased to provide the summary results of its independent reserve report (the “Sproule Report”) prepared by Sproule Associates Limited (“Sproule”) with an effective date of December 31, 2017.
Corporate Reserves Information
The following summarizes certain information contained in the Sproule Report. The Sproule Report was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Additional reserve information as required under NI 51-101 will be included in the Company’s Annual Information Form which will be filed on SEDAR on or by March 13, 2018.
Reserve Report Highlights
Summary of Gross Oil and Gas Reserves as of December 31, 2017
Light and Medium Oil |
Solution Gas |
Natural Gas |
Natural Gas Liquids |
Oil equivalent(4) |
Future Development Capital |
|
(MBbl) | (MMcf) | (MMcf) | (MBbl) | (MBoe) | (000s) | |
Proved | ||||||
Developed Producing | 25,760 | 66,598 | 7,152 | 3,147 | 41,199 | – |
Developed Non-producing | 617 | 1,468 | 244 | 69 | 971 | 1,136 |
Undeveloped | 22,369 | 52,022 | 13,893 | 3,068 | 36,423 | 605,140 |
Total proved | 48,746 | 120,088 | 21,288 | 6,284 | 78,592 | 606,275 |
Total Probable | 13,148 | 31,894 | 6,604 | 1,684 | 21,248 | 9,651 |
Total P+P(1) (2) (3) | 61,894 | 151,982 | 27,893 | 7,968 | 99,840 | 615,926 |
Notes:
(1) Reserves have been presented on gross basis which are the Company’s total working interest share before the deduction of any royalties and without including any royalty interests of the Company.
(2) Totals may not add due to rounding.
(3) Based on Sproule’s December 31, 2017 escalated price deck.
(4) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
Reconciliation of Company Gross Reserves by Principal Product Type as of
December 31, 2017 (1)(2)
Light & Medium Oil |
Conventional Natural Gas |
Natural Gas Liquids |
Oil Equivalent | |||||||||||||
Total Proved |
Proved + Probable |
Total Proved |
Proved + Probable |
Total Proved |
Proved + Probable |
Total Proved |
Proved + Probable |
|||||||||
(MBbl) | (MBbl) | (MMcf) | (MMcf) | (MBbl) | (MBbl) | (MBoe) | (MBoe) | |||||||||
Opening Balance, December 31, 2016 | 47,581 | 60,320 | 129,108 | 167,269 | 5,157 | 6,707 | 74,257 | 94,905 | ||||||||
Extensions & Improved Recovery(2) | 4,086 | 5,166 | 7,130 | 9,009 | 427 | 540 | 5,701 | 7,207 | ||||||||
Technical Revisions | (882) | (1,785) | 11,905 | 9,803 | 960 | 964 | 2,062 | 814 | ||||||||
Discoveries | – | – | – | – | – | – | – | – | ||||||||
Acquisitions | 697 | 868 | 1,730 | 2,170 | 57 | 71 | 1,043 | 1,301 | ||||||||
Dispositions(3) | – | – | – | – | – | – | – | – | ||||||||
Economic Factors | 150 | 211 | 295 | 415 | 13 | 16 | 212 | 296 | ||||||||
Production | (2,886) | (2,886) | (8,792) | (8,792) | (331) | (331) | (4,682) | (4,682) | ||||||||
Closing Balance, December 31, 2017(4) | 48,746 | 61,894 | 141,376 | 179,874 | 6,284 | 7,968 | 78,592 | 99,840 |
Notes:
(1) Gross Reserves means the Company’s working interest reserves before calculation of royalties, and before consideration of the Company’s royalty interests.
(2) Increases to Extensions & Improved Recovery include infill drilling and are the result of step-out locations drilled by Bonterra and other operators on and near Company-owned lands.
(3) Includes volumes associated with Farm outs.
(4) Totals may not add due to rounding.
Summary of Net Present Values of Future Net Revenue as of December 31, 2017
($M) | Net Present Value Before Income Taxes Discounted at (% per Year) | |||||||
Reserves Category: | 0% | 5% | 10% | 15% | ||||
Proved | ||||||||
Producing | 1,379,164 | 935,526 | 706,099 | 569,452 | ||||
Non-producing | 20,761 | 18,112 | 14,854 | 12,272 | ||||
Undeveloped | 930,643 | 514,685 | 306,474 | 190,432 | ||||
Total proved | 2,330,568 | 1,468,324 | 1,027,427 | 772,156 | ||||
Probable | 946,292 | 492,725 | 317,563 | 231,218 | ||||
Total proved plus probable(1)(2)(3) | 3,276,860 | 1,961,049 | 1,344,990 | 1,003,374 |
Notes:
(1) Evaluated by Sproule as at December 31, 2017. Net present value of future net revenue does not represent fair value of the reserves.
(2) Net present values equals net present value before income taxes based on Sproule’s forecast prices and costs as of December 31, 2017. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.
(3) Includes abandonment and reclamation costs as defined in NI 51-101.
Finding, Development & Acquisition (“FD&A”) and Finding & Development (“F&D”) Costs
Over the past three years, Bonterra has incurred the following FD&A(3) and F&D(3) costs both excluding and including Future Development Capital (“FDC”):
Total Proved Reserves Net Additions | P+P Reserves Net Additions | |||||||||||||||||
2017 | 2016 | 2015 | 3 Yr Avg(4) | 2017 | 2016 | 2015 | 3 Yr Avg(4) | |||||||||||
FD&A Costs per BOE (1)(2)(3) | ||||||||||||||||||
Including FDC | $15.66 | $10.87 | $11.52 | $12.60 | $13.74 | $9.93 | $11.60 | $11.77 | ||||||||||
Excluding FDC | $9.06 | $4.91 | $15.50 | $10.62 | $8.57 | $4.58 | $15.29 | $10.51 | ||||||||||
F&D Costs per BOE (1)(2)(3) | ||||||||||||||||||
Including FDC | $17.02 | $10.89 | $4.76 | $13.04 | $15.22 | $9.91 | $3.12 | $11.96 | ||||||||||
Excluding FDC | $9.55 | $4.81 | $33.26 | $9.73 | $9.25 | $4.44 | $56.32 | $9.64 |
Notes:
(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 capital generally will not reflect total finding and development costs related to reserve additions for that year.
(3) FD&A and F&D costs are net of proceeds of disposition 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 total proved and P+P reserves on a weighted average basis.
FD&A and F&D Highlights
Operational Highlights
Bonterra realized ongoing success in its core Pembina Cardium area through 2017 and maintained stable production volumes as a result of its low corporate decline rate and successful drilling program. The Company was able to grow reserves and lower net debt with no shareholder dilution due to the GORR transaction and its successful 2017 development program. Bonterra’s realized oil prices are based on Edmonton Par pricing; accordingly, the Company has not been exposed to the significantly lower differentials which have negatively impacted the Western Canadian Select benchmark price.
Bonterra’s 2017 full year and fourth quarter production summary follows:
2018 Guidance
Bonterra is maintaining the 2018 capital budget at $75 million which will be directed largely to new wells and facility upgrades focused primarily in the Pembina Cardium area. Bonterra anticipates the 2018 average annual production to range between 13,200 and 13,500 BOE per day.
Certain financial and operating information, such as production information, and F&D costs included in this press release are based on estimated unaudited financial results for the quarter and year ended December 31, 2017 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, 2017 and changes could be material.
For further information please contact:
George F. Fink, Chairman and CEO
Robb D. Thompson, CFO
Adrian Neumann, COO
Telephone: (403) 262-5307
Fax: (403) 265-7488
Email: info@bonterraenergy.com
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