Exploration & Production | Forecast - Production | Capital Markets | Capital Expenditure | Drilling Program

Bonterra Announces 2015 Capex

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Bonterra Energy Corp. has announced 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.