CALGARY, Dec. 4 /CNW/ - Bonterra Oil & Gas Ltd. (www.bonterraenergy.com)
(TSX: BNE.UN) announces that the monthly cash dividend to all holders of
common shares for the month of November will be reduced to $0.20 from the
previous amount of $0.26 (approximate reduction of 23 percent) and will be
paid on December 31, 2008. The record date for the dividend is December 15,
2008 and the ex-dividend date is December 11, 2008.
    The dividend level is paid monthly and subject to commodity prices and
production levels. During 2008, Bonterra was able to increase the dividend
(formerly paid as a distribution) four times to a level of $0.32 per month due
to the substantial increase in commodity prices, most notably in crude oil.
However, the recent significant decrease in oil and natural gas prices has
resulted in a decrease in cash flow. Bonterra has revised its budgeted outlook
from Cdn $115 per barrel of oil to Cdn $60 per barrel of oil and as such, a
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 shareholders.
    The Board of Directors will continue to monitor production volumes (that
will be higher in the fourth quarter of 2008 due to acquisitions and
drilling), dividend levels, payout ratios, and capital expenditures on a
monthly basis. Bonterra currently intends to continue to pay out between 75
and 80 percent of its cash flow and retain the remainder for capital
expenditures.

    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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