Bonterra Energy Corp. Releases Pro Forma Data
December 17 2012 - 8:53AM
Marketwired
In conjunction with today's conference call and webcast, Bonterra
Energy Corp. (TSX:BNE) (Bonterra) is releasing key pro forma data
with regard to the Definitive Agreement whereby Bonterra has agreed
to acquire all of the issued and outstanding common shares of
Spartan.
Pro Forma Capitalization: Pre-Consolidation Post-Consolidation
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Fully Diluted Shares 19.9 million 30.6 million
Market Capitalization(1) $1.3 billion
Enterprise Value(1) $1.5 billion
Pro Forma Net Debt $175 million
Monthly Dividend After Closing (Commencing March
2013) $0.28 per share
Pro Forma Tax Pools (2017 Tax Horizon) $570 million
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Pro Forma Corporate Profile:
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Oil and Liquids Weighting 77%
greater than 600
Drilling Locations horizontal locations
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2013 Outlook:
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Average Production 12,000 BOE per day
Operating Netbacks(2) $43.78 per BOE(3)
Forecast Cash Flow From Commodities $192 million
Capital Program $90 million
Dividend Payments ($0.28 per share effective March
31, 2013) $99 million
Beginning Net Debt $175 million
Ending Net Debt $170 million
2013 Ending Net Debt / Cash Flow Less than 1.0 x
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(1) Based on the December 14, 2012 closing price of $42.75 per
share.
(2) Assumes Cdn $81.88 average realized oil price and $3.54 AECO
for natural gas (includes $0.24 for positive quality adjustment),
10.2% royalty, $12.45 per BOE operating cost and $2.92 per BOE
G&A and interest cost.
(3) For every $5.00 realized oil price change (no change to
natural gas price), cash flow will change by approximately $15
million and the debt to cash flow ratio will change by
approximately 0.15 (pro forma of 1 to 1 will change to 1.13 to 1 or
0.82 to 1).
We invite all interested parties to join us on the upcoming
conference call with details as follows:
Date: Monday, December 17, 2012
Time: 8:30 a.m. MST (10:30 a.m. EST)
Dial-in: 416-340-2216 or toll free in North America 1-866-226-1792
Webcast: http://www.gowebcasting.com/4037
An archived recording of the conference call will be available
until December 24, 2012 by dialing toll-free 1-800-408-3053
(Toronto local dial 905-694-9451) and entering pass code 1312324.
The conference call will also be archived on the Bonterra website
at www.bonterraenergy.com.
Through the combination, Bonterra and Spartan will hold an
enviable suite of light-oil assets concentrated in the Pembina
region, which will be comprised of a complimentary production base
and a long-term inventory of drilling opportunities that is
anticipated to drive future growth. Bonterra, as demonstrated by
its past track record of increasing dividends and year-over-year
growth on a per share basis, has shown a strong ability to manage
Pembina Cardium assets to provide measured production growth while
providing a sustainable dividend to its shareholders. Bonterra's
common shares are traded on the Toronto Stock Exchange under the
symbol BNE.
For further information about Bonterra, please visit our website
at www.bonterraenergy.com.
Cautionary Statements
Certain statements contained in this press release include
statements which contain words such as "anticipate", "could",
"should", "expect", "seek", "may", "intend", "likely", "will",
"believe" and similar expressions, statements 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 press release includes, but is not limited to:
expected cash provided by continuing operations; 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 combined business and operations; and
maintenance of existing supplier and partner relationships; supply
channels; accounting policies; credit risks; and other such
matters. Forward-looking information in this press release also
includes, but is not limited to, timing for completion of the
transaction with Spartan and the timing and amount of future
dividend payments by Bonterra. In addition to other factors and
assumptions which may be identified in this press release,
assumptions have been made regarding and are implicit in, among
other things, the timely receipt of any required regulatory
approvals (including Court and shareholder approvals).
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. The foregoing
factors are not exhaustive.
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 so, what
benefits will be derived therefrom. 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 term barrels of oil equivalent (BOE) may be misleading,
particularly if used in isolation. A BOE conversion ratio of six
thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels
of oil equivalence is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. All BOE conversions
in the report are derived from converting gas to oil in the ratio
mix of six thousand cubic feet of gas to one barrel of oil.
The forward-looking information contained herein is expressly
qualified by this cautionary statement.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States,
nor shall there be any sale of the securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful. The
Bonterra Shares to be offered have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended and
may not be offered or sold in the United States or to a U.S. person
absent registration or an applicable exemption from the
registration requirements.
The Toronto Stock Exchange has neither approved nor disapproved
the contents of this press release.
Contacts: Bonterra Energy Corp. 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. Kirsten Lankester Manager, Investor Relations
(403) 262-5307 (403) 265-7488 (FAX)info@bonterraenergy.com
www.bonterraenergy.com
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