Bonterra Energy Corp. Announces Significant Year-end Corporate Reserves
Growth and Updates Pembina Cardium Horizontal Well Results

CALGARY, Feb. 10 /CNW/ - Bonterra Energy Corp. ("Bonterra" or "the company") (www.bonterraenergy.com) (TSX: BNE) is pleased to announce the results of its independent reserve report prepared by Sproule Associates Limited with an effective date of December 31, 2009.

    
    Highlights:

    -   Bonterra increased its reserve base in 2009 by 5.0 percent on a total
        proved (TP) basis and 14.7 percent on a proved plus probable (P+P)
        basis to total 25.3 million barrels of oil equivalent (boe) (2008 -
        24.1 MMboe) and 35.8 million boe (2008 - 31.2 MMboe), respectively,
        through development of its Pembina Cardium horizontal drilling
        program, improved operations, and acquisitions (TP 151 Mboe; P+P 269
        Mboe), and offset by production (1,823 Mboe) and divestments (TP
        1,011 Mboe; P+P 1,152 Mboe).

    -   A total of 4.1 million boe (TP) and 7.6 million boe (P+P) of reserves
        were added which equates to 2.2 and 4.1 times 2009 production,
        respectively.

    -   Reserves per share increased 8.7 percent to 1.99 boe per share at
        December 31, 2009 compared to 1.83 boe per unit in 2008 on a P+P
        basis.

    -   Reserves split of 76% oil and ngl's and 24% natural gas on a TP basis
        and 77% oil and ngl's and 23% natural gas on a P+P basis.

    -   Average daily production in 2009 totaled 4,994 boe per day, an
        increase of 14.9 percent when compared with 2008 levels. Average
        daily production in the fourth quarter of 2009 totaled 4,879 boe per
        day, an increase of 6.4 percent when compared to the fourth quarter
        of 2008.

    -   Bonterra's low decline production is supported by its high-quality
        reserve base. The reserve life index (RLI) in 2009 remained
        relatively unchanged at 14.2 years on a TP basis and 20.1 years on a
        P+P basis versus the 2008 RLI of 14.2 years on a TP basis and 18.7
        years on a P+P basis.

    -   Bonterra continues to focus on the efficient development of its asset
        base. Finding, development and acquisition (FD&A) costs including
        future development costs in 2009 continue to be among the lowest in
        the industry. FD&A costs including acquisitions (and net of
        dispositions) in 2009 were $13.25 per boe on a TP basis and $8.93 per
        boe on a P+P basis compared with the previous three year average
        (2006-2008) of $12.30 per boe on a TP basis and $9.45 per boe on a
        P+P basis.

    -   A total of 2.2 million boe on a TP basis and 6.6 million boe on a P+P
        basis of net reserves have been assigned to 28.1 net (34 gross)
        horizontal wells in the company's Pembina Cardium horizontal project.
        Since there is minimal production history and the development is
        intentionally located beyond existing Cardium pool production to
        reduce the possibility of depletion and water production, reserves
        could only be assigned to a limited number of locations at this time
        as per NI 51-101 standards. Once additional drilling is completed and
        additional production history is available, additional reserves could
        be assigned. Management believes that geological information
        indicates that the undeveloped lands that have not been assigned
        reserves have similar characteristics to currently producing lands to
        which reserves have been assigned.
    

Corporate Reserves Information:

Bonterra engaged the services of Sproule Associates Limited to prepare a reserve evaluation with an effective date of December 31, 2009. The reserves are located in the provinces of Alberta, British Columbia (BC) and Saskatchewan. Bonterra's largest producing area is located in the Pembina Field of Alberta, which contains 89.3% of the company's reserves on a P+P basis. The gross reserve figures for the following tables represent Bonterra's ownership interest before royalties and before consideration of the company's royalty interests. Tables may not add due to rounding.

    
    Summary of Oil and Gas Reserves as of December 31, 2009

                                          Light and          Natural
                                            Medium  Natural    Gas
                                             Oil      Gas    Liquids    BOE
                                            Gross    Gross    Gross    Gross
    Reserve Category:                       (Mbbl)   (MMcf)   (Mbbl)   (Mboe)
    -------------------------------------------------------------------------
    PROVED
      Developed Producing                  14,248   32,103    1,271   20,869
      Developed Non-Producing                 220      760        7      354
      Undeveloped                           3,284    3,779      190    4,104
    -------------------------------------------------------------------------
    TOTAL PROVED                           17,752   36,642    1,468   25,327
    PROBABLE                                7,923   12,896      425   10,497
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE             25,675   49,539    1,893   35,824
    -------------------------------------------------------------------------


    Reconciliation of Company Gross Reserves by Principal Product Type
     as of December 31, 2009

                    Light and Medium Oil and
                       Natural Gas Liquids    Natural Gas           BOE
    -------------------------------------------------------------------------
                                  Gross             Gross              Gross
                                  Proved            Proved            Proved
                          Gross    Plus     Gross    Plus     Gross    Plus
                         Proved  Probable  Proved  Probable  Proved  Probable

                          (Mbbl)   (Mbbl)   (Mmcf)   (Mmcf)   (Mboe)   (Mboe)
    -------------------------------------------------------------------------
    December 31, 2008    17,991   22,867   36,571   50,246   24,086   31,241
      Extension           1,983    6,062    1,024    2,540    2,154    6,485
      Improved recovery       0        0        0        0        0        0
      Technical revisions 2,138    1,579    3,350    1,034    2,696    1,751
      Discoveries             0        0        0        0        0        0
      Acquisitions          142      253       53       96      151      269
      Dispositions       (1,010)  (1,151)      (7)      (9)  (1,011)  (1,152)
      Economic factors     (877)    (895)    (290)    (309)    (925)    (947)
      Production         (1,146)  (1,146)  (4,059)  (4,059)  (1,823)  (1,823)
    -------------------------------------------------------------------------
    December 31, 2009    19,220   27,568   36,642   49,539   25,327   35,824
    -------------------------------------------------------------------------


    Summary of Net Present Values of Future Net Revenue as of December 31,
      2009

                   Net Present Values of Future Net Revenue
                             Before Income Taxes
                           Discounted at (%/Year)

    ($ Millions)                      0%       5%      10%      15%      20%
    Reserve Category:
    -------------------------------------------------------------------------
    PROVED
      Developed Producing        1,045.3    580.8    407.6    319.1    264.8
      Developed Non-Producing       15.8     13.0     11.2      9.9      9.0
      Undeveloped                  135.5    102.4     79.2     62.3     49.7
    -------------------------------------------------------------------------
    TOTAL PROVED                 1,196.6    696.2    498.1    391.4    323.4
    PROBABLE                       702.9    260.6    135.6     84.7     58.4
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE   1,899.5    956.9    633.7    476.1    381.8
    -------------------------------------------------------------------------


                   Net Present Values of Future Net Revenue
                             After Income Taxes
                           Discounted at (%/Year)

    ($ Millions)                      0%       5%      10%      15%      20%
    Reserve Category:
    -------------------------------------------------------------------------
    PROVED
      Developed Producing          903.8    533.5    387.5    309.1    259.4
      Developed Non-Producing       11.8     10.6      9.6      8.9      8.3
      Undeveloped                  101.4     79.4     63.3     51.1     41.6
    -------------------------------------------------------------------------
    TOTAL PROVED                 1,017.0    623.4    460.4    369.1    309.3
    PROBABLE                       527.4    195.8    102.5     64.5     44.9
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE   1,544.5    819.2    562.9    433.7    354.2
    -------------------------------------------------------------------------


    Commodity prices used in the above calculations of reserves are as
     follows:

                      Edmonton  Alberta Gas  Edmonton    Edmonton   Edmonton
    Year             Par Price  AECO-C Spot   Propane      Butane    Pentane
    -------------------------------------------------------------------------
                      (Cdn $      (Cdn $      (Cdn $      (Cdn $     (Cdn $
                     per bbl)   per MMBtu)   per bbl)    per bbl)   per bbl)
    2010               84.25        5.36       52.74       59.65       86.28
    2011               89.99        6.21       56.33       63.72       92.16
    2012               92.61        6.44       57.97       65.57       94.84
    2013               96.19        7.23       60.21       68.11       98.51
    2014               98.13        7.98       61.43       69.48      100.50
    2015              100.11        8.16       62.67       70.89      102.53
    2016              102.13        8.34       63.94       72.32      104.60
    2017              104.19        8.52       65.23       73.78      106.71
    2018              106.30        8.71       66.54       75.27      108.86
    2019              108.44        8.90       67.89       76.79      111.06
    2020              110.63        9.10       69.26       78.34      113.30
    -------------------------------------------------------------------------
    Crude oil, natural gas and liquid prices escalate at 2 percent per year
    thereafter
    

The Company has been active in its capital development program over the past three years. Over this time period Bonterra has incurred the following F&D and FD&A(3) Costs:

    
    -------------------------------------------------------------------------
                                                             2009       2008
                         2009 F&D   2008 F&D   2007 F&D     Three      Three
                        Costs per  Costs per  Costs per      Year       Year
                        BOE(1)(2)  BOE(1)(2)  BOE(1)(2)   Average    Average
    -------------------------------------------------------------------------
    Proved Reserve
     Additions            $16.23      $7.00      $2.15      $8.46     $11.55
    -------------------------------------------------------------------------
    Proved plus Probable
     Reserve Additions    $11.01      $6.82      $2.02      $6.62      $9.02
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                     2009 FD&A   2008 FD&A   2007 FD&A      2009        2008
                     Costs per   Costs per   Costs per     Three       Three
                        BOE         BOE         BOE         Year        Year
                     (1)(2)(3)   (1)(2)(3)   (1)(2)(3)   Average     Average
    -------------------------------------------------------------------------
    Proved Reserve
     Net Additions    $13.25       $8.67       $2.74       $8.22      $12.30
    -------------------------------------------------------------------------
    Proved plus
     Probable Reserve
     Net Additions     $8.93       $7.47       $2.68       $6.36       $9.45
    -------------------------------------------------------------------------
    

The above figures have been calculated in accordance with National Instrument 51-101 (NI 51-101) where the 2009 F&D Costs equate to the total exploration and development costs incurred by the Company of $28,726,000 (includes $5,814,000 for undeveloped land) as calculated according to GAAP plus or minus the yearly change in estimated future development costs as calculated by Sproule Associates Limited ($34,960,000 for proved and $51,538,000 for proved and probable). FD&A costs include acquisition costs of $7,105,000 as well as proceeds of disposition of $30,191,000. The following precautionary notes have been provided as required by NI 51-101.

    
    (1) Barrels of Oil Equivalent may be misleading, particularly if used in
        isolation. A BOE conversion ratio of 6MCF:1bbl 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 costs generally will not reflect total
        finding and development costs related to reserve additions for that
        year.

    (3) FD&A costs are net of proceeds of disposal and the FD&A costs per BOE
        are based on reserves acquired net of reserves disposed of.
    

Certain financial and operating information included in this press release for the quarter and year ended December 31, 2009, such as production information, finding and development costs and net asset values are based on estimated unaudited financial results for the year 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, 2009 and changes could be material. All reserve numbers provided above are Bonterra's interest before royalties.

It should not be assumed that the estimates of future net revenue presented in the above tables represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.

Estimates of reserves and future net revenues for individual properties may not reflect the same confidence level as estimates of reserves and future net revenues for all properties due to the effects of aggregation.

Update of Pembina Cardium Horizontal Well Results

Bonterra is also pleased to present the following gross production volumes to January 31, 2010, for seven of the Pembina Cardium horizontal wells that are currently on production. One additional well has been placed on production on February 6, 2010, and one additional well will be placed on production by mid-February. Production on these wells will be released when available.

    
    -------------------------------------------------------------------------
                             Days on        Oil Production      Average Rate
    Well ID                 Production           (bbls)          (bbls/day)
    -------------------------------------------------------------------------
    1-25-47-3W5                    364             43,453              119.4
    -------------------------------------------------------------------------
    16-19-47-2-W5                  182             26,697              146.7
    -------------------------------------------------------------------------
    16-13-47-3W5                    81              2,254               27.8
    -------------------------------------------------------------------------
    8-30-47-2W5                     77             21,257              276.1
    -------------------------------------------------------------------------
    16-25-47-3W5                    30              7,939            264.6*
    -------------------------------------------------------------------------
    12-24-47-3W5                    30              2,436               81.2
    -------------------------------------------------------------------------
    16-27-47-5W5                    29              4,361              150.4
    -------------------------------------------------------------------------
    * Flowing - well placed on pump February 2, 2010, and is producing at
        higher rates.
    

Subject to commodity prices and regulatory policies such as the Alberta competition review, Bonterra is projecting 2010 capital expenditures of $40 - $50 million. Most of the capital will be focused on the Pembina Cardium horizontal drilling program with the drilling of between 15 and 20 additional wells in 2010. Bonterra expects 2010 production to average between 5,700 - 6,000 boepd.

Caution Regarding Engineering Terms:

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a boe conversion ration of 6 MCF to 1 barrel has been used in all cases in this disclosure. This boe conversion ratio is based on an energy equivalency conversion method primarily available at the burner tip and does not represent a value equivalency at the wellhead.

Caution Regarding Forward Looking Information:

Certain information set forth in this press release, including management's assessment of Bonterra's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Bonterra's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Bonterra's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements, and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bonterra will derive therefrom. Bonterra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

%SEDAR: 00003132E

SOURCE Bonterra Energy Corp.

For further information: For further information: George F. Fink, Chairman and CEO, or Randy M. Jarock, President and COO, or Garth E. Schultz, Vice President, Finance and CFO, or Kirsten Kulyk, Manager, Investor Relations, Telephone: (403) 262-5307, Fax: (403) 265-7488, Email: info@bonterraenergy.com

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