Welcome!

News Feed Item

Bonterra Energy Corp. Provides Corporate Reserve Information on the Spartan Acquisition, Pro Forma Reserves Summary and Additional Updates

CALGARY, ALBERTA -- (Marketwire) -- 02/07/13 -- Bonterra Energy Corp. (Bonterra) (www.bonterraenergy.com) (TSX:BNE) reports the results of the independent reserve report prepared by Sproule Associates Limited with an effective date of December 31, 2012 for Spartan Oil Corp.; provides a pro forma reserves summary; updates its 2013 operating cost guidance; and corrects its finding, development and acquisition costs excluding future development costs for 2012.

Highlights


--  Proved plus Probable (P+P) reserves on a pro forma basis of 70.5 million
    BOE with approximately 78 percent oil and liquids. 
--  Approximately 74 percent of total reserves are classified as proved
    reserves with 26 percent classified as probable reserves.

Corporate Reserves Information (Spartan Oil Corp. Only)

Spartan Oil Corp. (Spartan) engaged the services of Sproule Associates Limited to prepare a reserve evaluation with an effective date of December 31, 2012. The gross reserve figures from the following tables represent Spartan's ownership interest before royalties and before consideration of the company's royalty interests at December 31, 2012. Tables may not add due to rounding.

Summary of Gross Oil and Gas Reserves as of December 31, 2012


                               Light and    Natural  Natural Gas            
                              Medium Oil        Gas      Liquids      BOE(1)
Reserve Category:                 (Mbbl)      (MMcf)      (Mbbl)      (MBOE)
----------------------------------------------------------------------------
PROVED                                                                      
  Developed Producing            6,019.8       9,762       462.8     8,109.6
  Developed Non-Producing          600.2         685        37.9       752.3
  Undeveloped                    8,115.4      10,005       533.2    10,316.1
----------------------------------------------------------------------------
TOTAL PROVED                    14,735.4      20,452     1,033.9    19,177.9
PROBABLE                         4,941.0       6,411       317.9     6,327.4
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE      19,676.4      26,863     1,351.7    25,505.3
----------------------------------------------------------------------------

Reconciliation of Company Gross Reserves by Principal Product Type as of December 31, 2012


                                                                            
                         Light and Medium Oil and                           
                              Natural Gas Liquids               Natural Gas 
----------------------------------------------------------------------------
                                                                            
                                      Proved plus               Proved plus 
                              Proved     Probable       Proved     Probable 
                              (Mbbl)       (Mbbl)       (Mmcf)       (Mmcf) 
----------------------------------------------------------------------------
December 31, 2011           12,838.2     18,639.4       11,822       16,750 
 Extension                     966.2      1,628.3          740        1,214 
 Infill Drilling               690.0      1,110.3          390          793 
 Improved Recovery                 -            -            -            - 
 Technical Revisions         2,027.0        380.1        8,515        9,109 
 Discoveries                       -            -            -            - 
 Acquisitions                   77.2         98.1           40           51 
 Dispositions                      -            -            -            - 
 Economic factors                0.2          1.4           (1)           - 
 Production                   (829.5)      (829.8)      (1,054)      (1,054)
----------------------------------------------------------------------------
December 31, 2012           15,769.3     21,028.1       20,452       26,863 
----------------------------------------------------------------------------

                                                  
                                                  
                                           BOE(1) 
--------------------------------------------------
                                                  
                                      Proved Plus 
                              Proved     Probable 
                              (MBOE)       (MBOE) 
--------------------------------------------------
December 31, 2011           14,808.5     21,431.1 
 Extension                   1,089.5      1,830.6 
 Infill Drilling               755.0      1,242.5 
 Improved Recovery                 -            - 
 Technical Revisions         3,446.2      1,898.3 
 Discoveries                       -            - 
 Acquisitions                   83.9        106.6 
 Dispositions                      -            - 
 Economic factors                  -          1.4 
 Production                 (1,005.2)    (1,005.5)
--------------------------------------------------
December 31, 2012           19,177.9     25,505.3 
--------------------------------------------------

Summary of Net Present Values of Future Net Revenue as of December 31, 2012


                                             Net Present Value Before Income
                                                                       Taxes
                                                  Discounted at (% per Year)
($ Millions)                                      0%          5%         10%
----------------------------------------------------------------------------
Reserve Category:                                                           
----------------------------------------------------------------------------
PROVED                                                                      
  Developed Producing                        428,694     296,926     228,451
  Developed Non-Producing                     42,920      29,235      22,314
  Undeveloped                                437,088     236,173     138,422
----------------------------------------------------------------------------
TOTAL PROVED                                 908,702     562,333     389,187
PROBABLE                                     387,226     149,581      73,082
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE                 1,295,929     711,914     462,269
----------------------------------------------------------------------------

Pro Forma Reserves (Bonterra and Spartan)

Summary of Gross Oil and Gas Reserves as of December 31, 2012


                               Light and    Natural  Natural Gas            
                              Medium Oil        Gas      Liquids      BOE(1)
Reserve Category:                 (Mbbl)      (MMcf)      (Mbbl)      (MBOE)
----------------------------------------------------------------------------
PROVED                                                                      
  Developed Producing           20,435.5      42,799     1,828.5    29,397.2
  Developed Non-Producing          966.5       3,314        89.7     1,608.6
  Undeveloped                   16,267.0      23,597     1,106.7    21,306.5
----------------------------------------------------------------------------
TOTAL PROVED                    37,669.0      69,710     3,024.9    52,312.2
PROBABLE                        12,954.1      25,374     1,041.9    18,225.0
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE      50,623.1      95,084     4,066.7    70,537.2
----------------------------------------------------------------------------

Summary of Net Present Values of Future Net Revenue as of December 31, 2012


                                                    Net Present Value Before
                                                                Income Taxes
                                                        Discounted at (% per
                                                                       Year)
($ Millions)                                      0%          5%         10%
----------------------------------------------------------------------------
Reserve Category:                                                           
----------------------------------------------------------------------------
PROVED                                                                      
  Developed Producing                      1,270,577     839,852     634,987
  Developed Non-Producing                     69,742      45,731      33,802
  Undeveloped                                830,149     427,672     234,625
----------------------------------------------------------------------------
TOTAL PROVED                               2,170,468   1,313,254     903,414
PROBABLE                                   1,001,822     385,562     191,763
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE                 3,172,291   1,698,816   1,095,178
----------------------------------------------------------------------------

Update: Bonterra 2013 Operating Cost Guidance

Bonterra closed the acquisition of Spartan in January, 2013 and announced guidance based on the combined entity on February 5, 2013. The guidance reported included operating costs expected to average approximately $15.00 per BOE on an annualized basis. However, this only included Bonterra operating costs. On a consolidated basis of Bonterra and Spartan, the operating costs for the combined entity are expected to average $12.45 per BOE for the period commencing from the acquisition date of January 25, 2013 to December 31, 2013.

Correction: Finding, Development and Acquisition (FD&A) Costs

The Company has historically been active in its capital development program. Over three years, Bonterra has incurred the following FD&A (3) costs excluding Future Development Costs:


                             2012                                           
                             FD&A      2011 FD&A     2010 FD&A              
                         Costs per     Costs per     Costs per    Three Year
                      BOE(1)(2)(3)  BOE(1)(2)(3)  BOE(1)(2)(3)    Average(4)
----------------------------------------------------------------------------
Proved Reserve Net                                                          
 Additions           $       13.64 $       33.22 $       13.89 $       16.22
Proved plus Probable                                                        
 Reserve Net                                                                
 Additions           $       16.05 $       15.38 $       13.02 $       14.79
----------------------------------------------------------------------------

(1) Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

(2) The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

(3) FD&A costs are net of proceeds of disposal and the FD&A costs per BOE are based on reserves acquired net of reserves disposed of.

(4) Three year average is calculated using three year total capital costs and reserve additions on both a Proved and Proved plus Probable basis

Certain financial and operating information, such as finding and development costs and net asset values, included in this press release for the year ended December 31, 2012 are based on estimated unaudited financial results for the year and are subject to the same limitations as discussed under Forward Looking Statements set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2012 and changes could be material. All reserve numbers provided above are Spartan's interest before royalties.

It should not be assumed that the estimates of future net revenue presented in the above tables represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. Estimates of reserves and future net revenues for individual properties may not reflect the same confidence level as estimates of reserves and future net revenues for all properties due to the effects of aggregation.

Caution Regarding Engineering Terms:

Disclosure provided herein in respect of barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of 6 MCF to 1 barrel has been used in all cases in this disclosure. This BOE conversion ratio is based on an energy equivalency conversion method primarily available at the burner tip and does not represent a value equivalency at the wellhead.

Caution Regarding Forward Looking Information:

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...