Bonterra Oil & Gas Ltd. Announces Significant Year-end Corporate Reserves Growth



    CALGARY, Feb. 12 /CNW/ - Bonterra Oil & Gas Ltd. ("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, 2008.

    
    Highlights:

    -  Bonterra increased its reserve base in 2008 by 12.1 percent on a total
       proved (TP) basis and 14.4 percent on a proved plus probable (P+P)
       basis to total 24.1 million barrels of oil equivalent (boe) and
       31.2 million boe, respectively, through a combination of improved
       operations, organic development and acquisitions.

    -  Reserves per share increased 13.0 percent to 1.83 boe per share at
       December 31, 2008 compared to 1.62 boe per unit in 2007 on a P+P
       basis.

    -  Average daily production in 2008 totaled 4,346 boe per day, an
       increase of three percent when compared with 2007 levels. Average
       daily production in the fourth quarter of 2008 totaled 4,587 boe
       per day, an increase of 6.8 percent when compared to the fourth
       quarter of 2007.

    -  Bonterra's low decline production is supported by its high-quality
       reserve base. The reserve life index (RLI) in 2008 increased to
       approximately 14.4 years on a TP basis and 18.7 years on a P+P basis
       versus the 2007 RLI of approximately 13.7 years on a TP basis and
       17.4 years on a P+P basis.

    -  Bonterra continues to focus on the efficient development of its asset
       base. Finding and development (F&D) costs including future development
       costs in 2008 decreased from our three year averages and continue to
       be among the lowest in the industry. F&D costs including acquisitions
       in 2008 were $8.68 per boe on a TP basis and $7.48 per boe on a P+P
       basis compared with the previous three year average (2005-2007) of
       $14.27 per boe on a TP basis and $11.07 per boe on a P+P basis.

    Corporate Reserves Information:

    Bonterra engaged the services of Sproule Associates Limited to prepare a
reserve evaluation with an effective date of December 31, 2008. The reserves
are located in the provinces of Alberta, British Columbia (BC) and
Saskatchewan. Bonterra's main oil producing areas are located in the Pembina
area of Alberta, northeast BC and the Shaunavon area of Saskatchewan. 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, 2008

                                 Light and    Natural  Natural Gas
                                 Medium Oil     Gas      Liquids      BOE
                                    Gross      Gross      Gross      Gross
    Reserve Category:               (Mbbl)     (MMcf)     (Mbbl)     (Mboe)
    -------------------------------------------------------------------------
    PROVED
      Developed Producing            14,650     32,108        884     20,885
      Developed Non-Producing            75        870         11        232
      Undeveloped                     2,258      3,594        112      2,969
    -------------------------------------------------------------------------
    TOTAL PROVED                     16,983     36,571      1,008     24,086
    PROBABLE                          4,575     13,675        301      7,155
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE       21,559     50,246      1,308     31,241
    -------------------------------------------------------------------------

    Reconciliation of Company Gross Reserves by Principal Product Type
    as of December 31, 2008

                   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, 2007    17,472   21,910   24,125   32,465   21,493   27,321
      Extension             263      337    1,949    2,516      588      756
      Improved recovery       -        -        -        -        -        -
      Technical
       revisions          1,296    1,716    5,651    6,824    2,238    2,853
      Discoveries            10       90       12      109       12      108
      Acquisitions           52       66    6,878    9,946    1,198    1,724
      Dispositions            -        -        -        -        -        -
      Economic factors       23     (128)     751    1,180      148       69
      Production         (1,125)  (1,125)  (2,795)  (2,795)  (1,591)  (1,591)
    -------------------------------------------------------------------------
    December 31, 2008    17,991   22,867   36,571   50,246   24,086   31,241
    -------------------------------------------------------------------------

    Summary of Net Present Values of Future Net Revenue as of December 31,
    2008

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

    ($ Millions)                0%        5%        10%       15%       20%
    Reserve Category:
    -------------------------------------------------------------------------
    PROVED
      Developed Producing    1,004.2     569.2     399.5     311.2     256.7
      Developed
       Non-Producing             6.5       5.3       4.4       3.8       3.3
      Undeveloped               85.1      64.5      49.4      38.1      29.5
    -------------------------------------------------------------------------
    TOTAL PROVED             1,095.8     639.1     453.4     353.1     289.5
    PROBABLE                   460.0     175.6      94.8      61.0      42.9
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS
     PROBABLE                1,555.8     814.6     548.2     414.0     332.4
    -------------------------------------------------------------------------

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

    ($ Millions)                0%        5%        10%       15%       20%
    Reserve Category:
    -------------------------------------------------------------------------
    PROVED
      Developed Producing      903.7     541.0     389.8     307.3     255.1
      Developed
       Non-Producing             3.1       3.6       3.6       3.4       3.1
      Undeveloped               49.8      44.3      37.4      30.7      24.9
    -------------------------------------------------------------------------
    TOTAL PROVED               956.6     588.8     430.7     341.4     283.0
    PROBABLE                   339.6     129.5      70.9      46.6      33.6
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS
     PROBABLE                1,296.2     718.4     501.6     388.0     316.6
    -------------------------------------------------------------------------

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

                            Alberta Gas
               Edmonton   Reference Price
    Year       Par Price     Plantgate     Propane      Butane       Pentane
    -------------------------------------------------------------------------
                 (Cdn $       (Cdn $       (Cdn $       (Cdn $       (Cdn $
                 per bbl)     per MCF)     per bbl)     per bbl)     per bbl)
    2009           65.35         6.47        40.70        51.15        66.93
    2010           72.78         7.24        43.16        54.25        74.54
    2011           79.95         7.56        47.42        59.59        81.88
    2012           86.57         8.15        51.34        64.53        88.66
    2013           94.97         9.00        56.33        70.79        97.27
    2014           96.89         9.21        57.46        72.22        99.23
    2015           98.85         9.42        58.62        73.68       101.23
    2016          100.84         9.63        59.81        75.16       103.28
    2017          102.88         9.85        61.02        76.68       105.36
    2018          104.96        10.17        62.25        78.23       107.49
    2019          107.08        10.30        63.50        79.81       109.66
    -------------------------------------------------------------------------
    Crude oil, natural gas and liquid prices escalate at 2 percent per year
    thereafter
    

    Certain financial and operating information included in this press
release for the quarter and year ended December 31, 2008, 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, 2008 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.

    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




For further information:

For further information: George F. Fink, 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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