News Releases

Bonterra Energy Income Trust Increases Cash Distribution for March Payable April 30, 2008

Apr 1, 2008 - 12:00 ET

CALGARY, ALBERTA--(Marketwire - April 1, 2008) - Bonterra Energy Income Trust ("Bonterra or "the Trust") (www.bonterraenergy.com) (TSX:BNE.UN) is pleased to announce its distribution to Unitholders for the month of March 2008. The record date for the distribution is April 15, 2008, and the ex-distribution date is April 11, 2008. The distribution will be made on April 30, 2008.

The Trust is increasing its distribution for the second time in 2008. The distribution will increase to $0.25 per Unit from $0.23 in February and $0.22 in January. The increase is necessary because of higher production volumes and higher commodity prices. Bonterra's objective is to distribute between 75 and 80 percent of its annual adjusted distribution base (formally "funds flow from operations").

The $0.25 monthly distribution is presently expected to be sustainable as long as prices average $85 Cdn. per barrel of crude oil, $7.50 Cdn. per MCF for natural gas and a sustained production rate of 4,450 BOE's per day. Bonterra's wells have a low production decline rate of approximately 9 percent and the Trust is therefore able to distribute a larger percentage of its adjusted distribution base and still be able to modestly increase its reserves and production rates on a per Unit basis. This can be accomplished while still maintaining a debt to annual adjusted distribution base of less than one year.

Bonterra 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".

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FOR FURTHER INFORMATION PLEASE CONTACT:

Bonterra Oil & Gas Ltd.
George F. Fink
President, and CEO
(403) 262-5307
Fax: (403) 265-7488

or

Bonterra Oil & Gas Ltd.
Garth E. Schultz
Vice President - Finance, and CFO
(403) 262-5307
Fax: (403) 265-7488
info@bonterraenergy.com
www.bonterraenergy.com

 

 
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