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)
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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
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TOTAL PROVED 16,983 36,571 1,008 24,086
PROBABLE 4,575 13,675 301 7,155
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TOTAL PROVED PLUS PROBABLE 21,559 50,246 1,308 31,241
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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
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Gross Gross Gross
Proved Proved Proved
Gross Plus Gross Plus Gross Plus
Proved Probable Proved Probable Proved Probable
(Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mboe) (Mboe)
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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)
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December 31, 2008 17,991 22,867 36,571 50,246 24,086 31,241
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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:
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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
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TOTAL PROVED 1,095.8 639.1 453.4 353.1 289.5
PROBABLE 460.0 175.6 94.8 61.0 42.9
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TOTAL PROVED PLUS
PROBABLE 1,555.8 814.6 548.2 414.0 332.4
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Net Present Values of Future Net Revenue
After Income Taxes
Discounted at (%/Year)
($ Millions) 0% 5% 10% 15% 20%
Reserve Category:
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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
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TOTAL PROVED 956.6 588.8 430.7 341.4 283.0
PROBABLE 339.6 129.5 70.9 46.6 33.6
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TOTAL PROVED PLUS
PROBABLE 1,296.2 718.4 501.6 388.0 316.6
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Commodity prices used in the above calculations of reserves are as
follows:
Alberta Gas
Edmonton Reference Price
Year Par Price Plantgate Propane Butane Pentane
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(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
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Crude oil, natural gas and liquid prices escalate at 2 percent per year
thereafterCertain 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