News Releases

Bonterra Oil & Gas Ltd. Announces Cash Dividend for December Payable January 30, 2009

Jan 6, 2009 - 12:00 ET

CALGARY, ALBERTA--(Marketwire - Jan. 6, 2009) - Bonterra Oil & Gas Ltd. (www.bonterraenergy.com) (TSX:BNE) announces that the monthly cash dividend to all holders of common shares for the month of December will be reduced to $0.16 from the previous amount of $0.20 (reduction of 20 percent) and will be paid on January 30, 2009. The record date for the dividend is January 15, 2009, and the ex-dividend date is January 13, 2009.

The dividend level is paid monthly and is subject to commodity prices and production levels. During 2008, Bonterra was able to increase the dividend (formerly paid as a distribution) due to the substantial increase in commodity prices, most notably in crude oil. However, the continuing significant decrease in oil and natural gas prices has resulted in a decrease in cash flow. This reduction is necessary to preserve balance sheet strength.

The Board of Directors will continue to monitor commodity prices and production volumes and will adjust dividend levels up or down in accordance with cash flow. Bonterra currently intends to continue to pay out between 75 and 80 percent of its cash flow and retain the remainder for capital expenditures.

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.

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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

or

Bonterra Oil & Gas Ltd.
Kirsten Kulyk
Manager, Investor Relations
(403) 262-5307
Fax: (403) 265-7488
info@bonterraenergy.com
www.bonterraenergy.com

 

 
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