2022-05-31 | TSX:BNE | Press release

CALGARY, Alta., May 31, 2022 /CNW/ – Bonterra Energy Corp. (www.bonterraenergy.com) (TSX: BNE) (“Bonterra” or the “Company”) is pleased to provide an operational update and confirm that it has finalized the re-determination of its credit facility with its syndicate lenders.

Operational update

Bonterra is pleased with the progress and success made from its 2022 drilling program to date, targeting low-risk, high-return light oil opportunities. The Company has brought 24 gross wells (19.6 net wells) on production in the first five months of 2022, followed by drilling and completion operations after spring break-up which are expected to begin in late June 2022. Annual production is expected to reach on average 13,500 boe per day1 (middle of the annual forecasts) on the basis of an investment budget of approximately $70 millionWhich one is $5 million higher than previously announced annual guidance due to inflationary cost pressures.

The Company’s Significant Torque on Oil Prices, Combined with Rising Production Volumes, is Expected to Boost the Free Funds Flow Expected for 20222 of about $165 millionbased on an average WTI oil futures price of approximately $103 for the rest of the year. Bonterra anticipates net debt to cash flow ratio2 by approximately 0.5x by the end of 2022. For more information on future price sensitivities and prospects, see Bonterra’s current presentation posted on the Company’s website.

Credit facility update

Bonterra and its syndicate of lenders have finalized an amended and updated credit agreement that improves alignment with the Company’s debt reduction objectives and results in lower interest costs on bank indebtedness going forward (the “New Facility”). The new installation offers the following features and benefits:

  • Provides appropriately sized credit capacity given the company’s strong expected cash flow profile and investment program in the current commodity price environment;
  • Includes a $165 million borrowing base, consisting of a $150 million revolving credit facility and a $15 million operating facility (estimated to pull $120 million of the May 31, 2022), supporting the Company’s continued focus on repaying outstanding bank indebtedness;
  • Includes five progressive monthly commitments of $10 million each, which conclude on October 31, 2022resulting in an expected base borrowing capacity at that time of $115 million; and
  • At a maturity date of November 30, 2022at which time Bonterra expects the amounts withdrawn to be minimal at current commodity prices.

Bonterra Energy Corp. is a conventional oil and gas company that operates in alberta, Saskatchewan and British Columbia, focused on its strategy of long-term sustainable growth and value creation for its shareholders. The Company’s shares are listed on the Toronto Stock Exchange under the symbol “BNE”.


This summary press release should not be considered an appropriate source of information for readers unfamiliar with Bonterra Energy Corp. and should in no way be considered a substitute for reading the full report. For the full report, visit www.bonterraenergy.com.

Non-IFRS Measures and Other Financial Measures

Throughout this press release, the Company uses the terms “funds flow”, “free funds flow”, “trailing year-over-year net debt to cash flow ratio” and “net debt” to analyze performance. which are not standardized measures recognized by IFRS and do not have any standardized meaning prescribed by IFRS. These measures are commonly used in the oil and gas industry and are considered informative by management, shareholders and analysts. These measures may differ from those made by other companies and, therefore, may not be comparable to measures as presented by other companies.

The Company defines cash flows as funds provided by operations, including proceeds from the sale of investments and investment income received, excluding the effects of changes in non-cash working capital and expenses. of dismantling settled. Free cash flow is defined as cash flow less dividends paid to shareholders, capital expenditures and paid decommissioning expenditures. Net debt is defined as long-term subordinated debt and subordinated debentures plus working capital deficit (current liabilities less current assets). The net debt to trailing twelve month cash flow ratio is defined as net debt at the end of the period divided by trailing twelve month cash flow.

Forward-looking information

Certain statements in this release include statements that 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 regarding the development, results and events that will or may occur in the future, constitutes “forward-looking information” within the meaning of applicable Canadian securities laws and is based on certain assumptions and analyzes made by us based on our experience and our perceptions. contained in this release include, but are not limited to: expected cash provided by continuing operations; future asset retirement obligations; future capital expenditures, including their amount and nature; oil and natural gas prices and demand; expansion and other development trends of the oil and gas industry; business strategy and outlook; the expansion and growth of our business and operations; and maintaining existing relationships with customers, suppliers and partners; supply channels; Accounting rules; credit risks; cyber security; climate change; the impact of the COVID-19 pandemic; and other such questions.

All such forward-looking information is based on certain assumptions and analyzes that we have made in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors that we deem appropriate in the circumstances. The risks, uncertainties and assumptions are difficult to predict and may affect operations, and may include, but are not limited to: currency exchange rate fluctuations; equipment and labor shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, tax and other laws and regulations, and how such laws and regulations are interpreted and applied; the ability of oil and gas companies to raise capital or maintain their syndicated bank facility; the effect of weather conditions on operations and facilities; the existence of operational risks; volatility in oil and natural gas prices; supply and demand for oil and gas products; risks inherent in the ability to generate sufficient operating cash flow to meet current and future obligations; increased competition; stock market volatility; opportunities available to us or that we pursue; and other factors, many of which are beyond our control.

Actual results, performance or achievements could differ materially from those expressed or implied by such forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will occur or will occur, or if any of them does, what benefits will be derived. 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.

Frequently recurring terms

Bonterra uses the following frequently recurring terms in this press release: “WTI” refers to West Texas Intermediate, a light sweet crude oil grade used as a benchmark price in United States; “MSW Stream Index” or “Edmonton Par” refers to the Mixed Sweet Blend which is the benchmark price for conventionally produced light sweet crude oil in Western Canada; “AECO” is the reference price for natural gas in Alberta, Canada; “bbl” refers to barrel; “NGL” refers to natural gas liquids; “MCF” refers to one thousand cubic feet; “MMBTU” refers to one million British Thermal Units; “GJ” refers to the gigajoule; and “BOE” refers to barrels of oil equivalent. The disclosure provided herein with respect to a BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF:1 barrel is based on an energy conversion method primarily applicable at the burner nose and does not represent a value equivalence at the wellhead.

Numerical amounts

The Company’s presentation currency and functional currency are the Canadian dollar.

The TSX accepts no responsibility for the accuracy of this release.


1 2022 volumes are expected to consist of 7,320 bbl/d of light and medium crude oil, 1,320 bbl/d of NGLs and 29,200 mcf/d of conventional natural gas, based on a midpoint of 13 500 boe/d.

2 “Cash flow”, “Free cash flow”, “Net debt” and “Net debt to trailing twelve month cash flow ratio” are not recognized measures under IFRS. See “Warnings” below.

SOURCEBonterra Energy Corp.

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