CALGARY, Feb. 9 /CNW/ - Bonterra Oil & Gas Ltd. (www.bonterraenergy.com)
(TSX: BNE) announces that the January monthly cash dividend will be reduced to
$0.12 from the previous amount of $0.16 (reduction of 25 percent) and will be
paid on February 27, 2009. The record date for the dividend is February 18,
2009, and the ex-dividend date is February 13, 2009.
The dividend is paid monthly and is subject to commodity prices and
production levels. The significant decline in natural gas prices and the
expiration of risk management contracts substantially reduced cash flow. This
reduction was partially offset by marginal increases in crude oil prices and
levels of production. The reduction in dividend is necessary to preserve
balance sheet strength.
The Board of Directors will continue to monitor commodity prices and
production volumes and will adjust dividend levels up or down in accordance
with cash flow. Bonterra currently intends to continue to pay out between 75
and 80 percent of its annual cash flow and retain the remainder for capital
expenditures and/or debt retirement.
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.
For further information:
For further information: George F. Fink, President, and CEO or Garth E.
Schultz, Vice President - Finance, and CFO or Kirsten Kulyk, Manager, Investor
Relations, Telephone: (403) 262-5307, Fax: (403) 265-7488, Email: