News Releases

Bonterra Energy Income Trust Confirms Cash Distribution for January Payable February 28, 2007

Feb 6, 2007 - 12:00 ET

CALGARY, ALBERTA--(Marketwire - Feb. 6, 2007) - Bonterra Energy Income Trust (www.bonterraenergy.com) (TSX:BNE.UN) is pleased to announce its distribution to Unitholders for the month of January 2007. The record date for the distribution is February 15, 2007, and the ex-distribution date is February 13, 2007. The distribution will be made on February 28, 2007.

Due to lower commodity prices and the potential impact from the uncertainty of Federal tax laws pertaining to Trusts, Bonterra has reduced its January distribution by 8 percent from $0.24 to $0.22 and will reduce its capital expenditures to approximately $20,000,000 in 2007 from approximately $37,000,000 in 2006.

The distribution target for 2007 is approximately 80 to 85 percent of cash flow and due to its low decline rate it is projected that Bonterra will be able to sustain a 2007 average production rate of 4,400 BOE per day (2006 nine month average was 4,017 BOE per day) and maintain a debt level that is less than one year's cash flow. At December 31, 2006, Bonterra had 21 gross (net 17.3) oil and natural gas wells (excluding CBM wells that will not be completed at the present time pending clarification of government regulations) that were drilled but not on production. The majority of these wells will be tied in and on production in Q1, 2007.

Future distributions and capital expenditures in 2007 may also be increased or decreased in accordance with fluctuations in commodity prices, clarification of Federal tax laws and price adjustments by oil and gas service companies.

FORWARD-LOOKING INFORMATION

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Certain information set forth in this document 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 there from. 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. Readers are cautioned that net present value of reserves does not represent fair market value of reserves.

Bonterra Energy Income Trust is a conventional oil and gas royalty trust with operations in Alberta and Saskatchewan. Its units are listed on The Toronto Stock Exchange under the symbol "BNE.UN".



FOR FURTHER INFORMATION PLEASE CONTACT:

George F. Fink
President, and CEO
(403) 262-5307
Fax: (403) 265-7488

or

Garth E. Schultz
Vice President - Finance, and CFO
(403) 262-5307
Fax: (403) 265-7488

 

 
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