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
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTred processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.