Bonterra Oil & Gas Ltd. announces closing of $18 million bought deal offering



    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S./
    

    CALGARY, May 27 /CNW/ - Bonterra Oil & Gas Ltd. (TSX:BNE) (the
"Corporation" or "Bonterra") has announced today that it has closed the
private placement previously announced on May 7, 2009. The private placement
was conducted with a syndicate of underwriters co-led by Research Capital
Corporation and J.F. Mackie & Company Ltd. and including FirstEnergy Capital
Corp. and Haywood Securities Inc. (collectively, the "Underwriters") and
consisted of the issuance of an aggregate of 1,068,000 common shares
(including 178,000 common shares issued pursuant to the exercise in full of
the Underwriters' over-allotment option) at a price of $16.85 per share for
gross proceeds of $17,995,800.00. The Underwriters were paid a cash commission
on the gross proceeds of the private placement. The net proceeds received by
the Corporation from the private placement are expected to be used to reduce
debt, to conduct development activities on the Corporation's oil and gas
properties and for general working capital.

    The Corporation is a conventional oil and gas corporation with operations
in Alberta, Saskatchewan and British Columbia. The common shares of the
Corporation are listed on the Toronto Stock Exchange under the symbol "BNE".

    The securities have not been and will not be registered under the United
States Securities Act of 1933 (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to
U.S. Persons (as defined in the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws, or an exemption
from such registration is available.

    Caution Regarding Forward-Looking Statements

    This press release contains forward-looking statements and information
within the meaning of applicable securities laws, including but not limited to
the use of the net proceeds of the private placement. Forward-looking
statements and information are often, but not always, identified by the use of
words such as "expect", "may", "could", "anticipate" or "will" and similar
expressions and may describe expectations, opinions or guidance that are not
statements of fact. Forward-looking statements are based upon the opinions,
expectations and estimates of management of Bonterra as at the date the
statements are made and are subject to a variety of known and unknown risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
statements. Those factors include, but are not limited to risks, uncertainties
and other factors that are beyond the control of Bonterra, risks associated
with the oil and gas industry, commodity prices and exchange rate changes,
operational risks associated with exploration, development development and
production operations, delays or changes in plans, risks associated with the
uncertainty of reserve estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In light of
the risks and uncertainties associated with forward-looking statements,
readers are cautioned not to place undue reliance upon forward-looking
information. Assumptions relating to certain forward-looking information
contained in this press release are set out herein. Although Bonterra believes
that the expectations reflected in the forward-looking statements set out in
this press release or incorporated herein by reference are reasonable, it can
give no assurance that such expectations will prove to have been correct. The
forward-looking statements of Bonterra contained in this press release, or
incorporated herein by reference, are expressly qualified, in their entirety,
by this cautionary statement.

    %SEDAR: 00003132E




For further information:

For further information: George F. Fink, Chairman and Chief Executive
Officer; Garth E. Schultz, Vice President, Finance and Chief Financial
Officer, Bonterra Oil & Gas Ltd., Suite 901, 1015 - 4th Street S.W., Calgary,
Alberta, T2R 1J4, Phone: (403) 262-5307, Fax: (403) 265-7488

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Bonterra Energy Corp.

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