CALGARY, ALBERTA--(Marketwired - Feb. 19, 2015) - Bonterra Energy Corp. (Bonterra or the Company)(www.bonterraenergy.com) (TSX:BNE) is pleased to provide an operational update as well as the results of its independent reserve report prepared by Sproule Associates Limited with an effective date of December 31, 2014.
Operational Highlights
- Record average daily production for the full year of 13,195 barrels of oil equivalent (BOE) per day (71 percent oil and liquids), an increase of 8 percent over the same period in 2013.
- Record average daily production of 13,488 BOE per day in the fourth quarter, an increase of 8 percent when compared to the fourth quarter of 2013.
- Production per fully diluted share increased over 2 percent to 0.150 BOE per share from 0.147 BOE per share from the prior year.
The Company has not released its audited 2014 financial results, and therefore the numbers provided are currently estimates and unaudited.
Corporate Reserves Information
Bonterra engaged the services of Sproule Associates Limited to prepare a reserve evaluation with an effective date of December 31, 2014. The gross reserve figures from the following tables represent Bonterra's ownership interest before the deduction of royalties and before consideration of the Company's royalty interests. Tables may not add due to rounding.
Reserve Report Highlights
- Increased proved plus probable (P+P) reserves by 7 percent to 80.3 mmboe (71 percent oil and liquids) and proved reserves by 16 percent to 62.8 mmboe (71 percent oil and liquids).
- Total proved reserves represent 78 percent of total P+P reserves.
- Reserves per fully diluted share (P+P) increased to 2.50 BOE per share compared to 2.47 BOE per share from the prior year.
- Reserve life index of approximately 17 years on P+P basis, 13 years on a proved basis, and 7 years on a proved developed producing (PDP) basis (based on 2014 average production rate of 13,195 BOE per day).
- Booked reserves represent approximately 30 percent of Bonterra's current potential inventory of undrilled locations.
| Summary of Gross Oil and Gas Reserves as of December 31, 2014 | |||||||||
| Light and | Natural | ||||||||
| Medium Oil | Gas | Natural Gas | BOE(1 | ) | |||||
| Reserve Category: | (Mbbl | ) | (MMcf | ) | Liquids (Mbbl | ) | (MBOE | ) | |
| PROVED | |||||||||
| Developed Producing | 21,263 | 54,190 | 2,023 | 32,317 | |||||
| Developed Non-Producing | 796 | 1,432 | 63 | 1,098 | |||||
| Undeveloped | 18,471 | 52,506 | 2,158 | 29,380 | |||||
| TOTAL PROVED | 40,529 | 108,128 | 4,245 | 62,795 | |||||
| PROBABLE | 11,190 | 30,759 | 1,136 | 17,453 | |||||
| TOTAL PROVED PLUS PROBABLE | 51,719 | 138,887 | 5,381 | 80,248 | |||||
| (1) | Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead |
Reconciliation of Company Gross Reserves by Principal Product Type as of December 31, 2014
| Light and Medium Oil and | |||||||||||||
| Natural Gas Liquids | Natural Gas | BOE(1) | |||||||||||
| Proved plus | Proved plus | Proved Plus | |||||||||||
| Proved | Probable | Proved | Probable | Proved | Probable | ||||||||
| (Mbbl | ) | (Mbbl | ) | (MMcf | ) | (MMcf | ) | (MBOE | ) | (MBOE | ) | ||
| December 31, 2013 | 40,251 | 55,616 | 83,070 | 116,190 | 54,096 | 74,980 | |||||||
| Extension | 1,547 | 1,917 | 17,829 | 22,378 | 4,519 | 5,647 | |||||||
| Infills | 6,281 | 7,992 | 7,320 | 9,371 | 7,501 | 9,554 | |||||||
| Improved Recovery | - | - | - | - | - | - | |||||||
| Technical Revisions | 153 | (5,006 | ) | 8,535 | (455 | ) | 1,575 | (5,082 | ) | ||||
| Discoveries | - | - | - | - | - | - | |||||||
| Acquisitions | 32 | 40 | 111 | 138 | 51 | 63 | |||||||
| Dispositions | - | - | - | - | - | - | |||||||
| Economic factors | (64 | ) | (31 | ) | (403 | ) | (401 | ) | (131 | ) | (98 | ) | |
| Production | (3,427 | ) | (3,427 | ) | (8,334 | ) | (8,334 | ) | (4,816 | ) | (4,816 | ) | |
| December 31, 2014 | 44,774 | 57,101 | 108,128 | 138,887 | 62,795 | 80,248 | |||||||
| (1) | Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead |
Summary of Net Present Values of Future Net Revenue as of December 31, 2014
| Net Present Value Before Income Taxes | ||||||
| Discounted at (% per Year) | ||||||
| ($000's) | 0% | 5% | 10% | |||
| Reserve Category: | ||||||
| PROVED | ||||||
| Developed Producing | 1,306,489 | 892,760 | 684,204 | |||
| Developed Non-Producing | 49,521 | 30,494 | 22,071 | |||
| Undeveloped | 956,643 | 515,200 | 304,571 | |||
| TOTAL PROVED | 2,312,653 | 1,438,454 | 1,010,846 | |||
| PROBABLE | 913,471 | 467,586 | 301,792 | |||
| TOTAL PROVED PLUS PROBABLE | 3,226,124 | 1,906,040 | 1,312,638 | |||
Finding, Development and Acquisition (FD&A) Costs
The Company has historically been active in its capital development program. Over three years, Bonterra has incurred the following FD&A(3) costs excluding Future Development Capital:
| 2014 FD&A | 2013 FD&A | 2012 FD&A | ||||||
| Costs per | Costs per | Costs per | Three Year | |||||
| BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | Average(4 | ) | |
| Proved Reserve Net Additions | $11.60 | $23.63 | $13.64 | $18.52 | ||||
| Proved plus Probable Reserve Net Additions | $15.54 | $20.12 | $16.05 | $18.71 |
Over three years, Bonterra has incurred the following FD&A (3) costs including Future Development Capital:
| 2014 FD&A | 2013 FD&A | 2012 FD&A | ||||||
| Costs per | Costs per | Costs per | Three Year | |||||
| BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | Average(4 | ) | |
| Proved Reserve Net Additions | $18.93 | $24.80 | $20.91 | $22.47 | ||||
| Proved plus Probable Reserve Net Additions | $22.67 | $21.06 | $21.62 | $21.45 |
Finding and Development (F&D) Costs
Over three years, Bonterra has incurred the following F&D (3) costs excluding Future Development Capital:
| 2014 F&D | 2013 F&D | 2012 F&D | ||||||
| Costs per | Costs per | Costs per | Three Year | |||||
| BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | Average(4 | ) | |
| Proved Reserve Net Additions | $11.53 | $17.10 | $13.56 | $13.46 | ||||
| Proved plus Probable Reserve Net Additions | $15.49 | $13.41 | $18.79 | $15.85 |
Over three years, Bonterra has incurred the following F&D(3) costs including Future Development Capital:
| 2014 F&D | 2013 F&D | 2012 F&D | ||||||
| Costs per | Costs per | Costs per | Three Year | |||||
| BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | BOE(1)(2)(3 | ) | Average(4 | ) | |
| Proved Reserve Net Additions | $18.89 | $21.38 | $22.26 | $20.33 | ||||
| Proved plus Probable Reserve Net Additions | $22.67 | $17.04 | $26.61 | $22.00 |
| (1) | Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. |
| (2) | The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year. |
| (3) | FD&A and F&D costs are net of proceeds of disposal and the FD&A costs per BOE are based on reserves acquired net of reserves disposed of. |
| (4) | Three year average is calculated using three year total capital costs and reserve additions on both a Proved and P+P reserves on a weighted average basis. |
Certain financial and operating information, such as production information, and finding and development costs included in this press release for the quarter and year ended December 31, 2014 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, 2014 and changes could be material.
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 ratio 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.
Forward-looking Information
Certain statements contained in this release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this release includes, but is not limited to: expected cash provided by continuing operations; cash dividends; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Bonterra disclaims any intention or obligation to update or revise any forward -looking information, whether as a result of new information, future events or otherwise.
The forward-looking information contained herein is expressly qualified by this cautionary statement.
The TSX does not accept responsibility for the accuracy of this release.
Contact Information:
George F. Fink
Chairman and CEO
(403) 262-5307
(403) 265-7488 (FAX)
Bonterra Energy Corp.
Robb D. Thompson
CFO and Secretary
(403) 262-5307
(403) 265-7488 (FAX)
Bonterra Energy Corp.
Adrian Neumann
COO
(403) 262-5307
(403) 265-7488 (FAX)
info@bonterraenergy.com