CALGARY, Nov. 6 /CNW/ - Bonterra Energy Income Trust
(www.bonterraenergy.com) (TSX: BNE.UN) announces that the monthly cash
distribution (or dividend assuming the conversion of Bonterra to a corporation
proceeds as previously announced) that will be paid on November 28, 2008, to
all securityholders will be lowered to $0.26 from the previous amount of $0.32
(reduction of 18.75 percent).
    The majority of the issued securities of Bonterra are held by Canadian
individuals or entities outside of tax shelters. On an after tax basis, a
$0.26 dividend with a 19 percent combined Federal and Provincial tax rate,
will still exceed the $0.32 distribution that was taxed on a combined Federal
and Provincial tax basis at rates of 39.5 to 46.5 percent, depending on the
holder's Province of residence. These taxation rates may not be applicable to
securities held by foreign investors or by individuals or entities in tax
shelters. Reduced taxes may also be available to Canadian taxable
corporations. All securityholders should consult their own tax advisors for
advice with regard to their respective taxation.
    If the previously announced Plan of Arrangement closes as anticipated on
or about November 13, 2008, the payment will be paid as a dividend to
shareholders of record as of November 24, 2008, with an ex-dividend date of
November 20, 2008. If the Plan of Arrangement does not close as scheduled, the
payment will be paid as a distribution to unitholders of record on November
17, 2008. The ex-distribution date for such a distribution will be November
13, 2008.
    The recent significant decrease in crude oil and natural gas prices has
resulted in a decrease in cash flow. The Board of Directors will continue to
monitor production volumes (that will be higher in Q4, 2008, due to
acquisitions and drilling), distribution/dividend levels, payout ratios, and
capital expenditures on a monthly basis. Bonterra currently intends to
continue to pay out between 70 and 80 percent of its cash flow and retain the
remainder for capital expenditures. The announced reduction is necessary to
preserve balance sheet strength and maintain Bonterra's financial flexibility
to pursue potential opportunities to further add long-term value for its
securityholders.

    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.

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