Bonterra Energy Corp. Announces Second Quarter and Six Months Ended June 30, 2015 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/12/15 -- Bonterra Energy Corp. (Bonterra or the Company) (TSX: BNE) is pleased to announce its operating and financial results for the three and six months ended June 30, 2015. The related unaudited condensed financial statements and notes, as well as management's discussion and analysis (MD&A), are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at and on Bonterra's website at .
HIGHLIGHTS
Bonterra's second quarter results improved compared to Q1 2015 due to higher oil prices resulting in the Company's realized prices increasing by 29 percent. With increased oil prices the Company continued with its development capital program by drilling 4 gross (3.9 net) wells and completing and tying-in 8 gross (7.9 net) wells that were drilled prior to the second quarter, but not completed or tied-in during the first quarter due to low oil prices.
During the first half of 2015 Bonterra dealt with lower than expected production volumes of approximately 1,200 BOE per day. The reduced volumes have resulted from pipeline restrictions on the TransCanada pipeline system, insufficient natural gas processing capacity, delaying the completion of wells due to low oil prices and the voluntary shut-in of production. By successfully redirecting the majority of these affected volumes the Company's current production is now in excess of 14,000 BOE per day.
On April 15, 2015, the Company acquired Cardium oil and gas assets in the Pembina area for $170.4 million which are complementary to Bonterra's current acreage and provide additional inventory of long-term drilling locations. The current production on the acquired assets is approximately 1,825 BOE per day with a decline rate of approximately 7 percent.
Q2 and the Six Months Ended June 30, 2015 Highlights:
Kindly refer to the "Highlights" and "Quarterly Comparison" sections of the full Q2 2015 quarterly report for further details.
Subsequent Event
Outlook
It is a volatile period for the oil and gas industry and difficult to predict future conditions for maintaining a five year plan. The largest impact items will likely be predicting oil prices and the impact of policies implemented by the new Alberta government.
Bonterra's favourable asset base makes it possible to operate successfully at low oil prices and with present debt levels. The Company continues to take the approach that capital spending and dividend payments will continue to be monitored on an ongoing basis and can be modified on short notice, depending on changes in production volumes, commodity prices and regulatory changes.
However, it is important to remember that not all is negative during difficult times. Capital costs on a per well basis have been reduced by 25 percent; operating and general and administration costs have been reduced by 14 percent per BOE and 38 percent per BOE, respectively; and the Canadian dollar compared to the U.S. is substantially lower which contributes to stronger Canadian dollar revenues. Each of these items help to somewhat offset the broader negative impact of low WTI oil pricing.
Another important advantage for Bonterra is that it has an inventory of undrilled Cardium locations that will last for 14 years. It is a difficult time for our industry, but survival is not an issue for Bonterra.
The Board of Directors wish to take the opportunity to thank the staff and consultants for all of the work that has been provided by them during the past six months. A significant amount of extra time and effort has been required.
Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia. The shares are listed on The Toronto Stock Exchange under the symbol "BNE".
Cautionary Statements
This summarized news release should not be considered a suitable source of information for readers who are unfamiliar with Bonterra Energy Corp. and should not be considered in any way as a substitute for reading the full report. For the full report, please go to .
Use of Non-IFRS Financial Measures
Throughout this release the Company uses the terms "payout ratio" and "cash netback" to analyze operating performance, which are not standardized measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures are commonly utilized in the oil and gas industry and are considered informative by management, shareholders and analysts. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies.
The Company calculates payout ratio by dividing cash dividends paid to shareholders by cash flow from operating activities, both of which are measures prescribed by IFRS which appear on our statements of cash flows. We calculate cash netback by dividing various financial statement items as determined by IFRS by total production for the period on a barrel of oil equivalent basis.
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.
Frequently recurring terms
Bonterra uses the following frequently recurring terms in this press release: "bbl" refers to barrel, "NGL" refers to Natural gas liquids, "MCF" refers to thousand cubic feet and "BOE" refers to barrels of oil equivalent. Disclosure provided herein in respect of a BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Numerical Amounts
The reporting and the functional currency of the Company is the Canadian dollar.
Contacts:
Bonterra Energy Corp.
George F. Fink
Chairman and CEO
(403) 262-5307
Bonterra Energy Corp.
Robb D. Thompson
CFO and Secretary
(403) 262-5307
(403) 265-7488 (FAX)
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Unternehmensinformation / Kurzprofil:
Datum: 12.08.2015 - 23:00 Uhr
Sprache: Deutsch
News-ID 413340
Anzahl Zeichen: 0
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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