General FAQs

What is Bonterra's stock symbol? How do I become a shareholder of Bonterra?

Bonterra's shares trade on the Toronto Stock Exchange under the symbol BNE. Bonterra shares can be purchased on the TSX through a broker or discount brokerage and cannot be purchased directly from the company.

What is Bonterra's dividend policy?

The dividend is paid monthly and subject to commodity prices and production levels. Management and the Board of Directors monitor production volumes, dividend levels, payout ratios, and capital expenditures on a monthly basis. Bonterra currently intends to continue to pay out between 75 and 80 percent of its cash flow and retain the remainder for capital expenditures.

When did Bonterra convert to a corporation from an income trust? Why?

Bonterra has continued its long-term, disciplined approach to creating value for its investors and during the third quarter of 2008 proposed a plan which provided certainty and clarity with regards to its future. The Board of Directors and management recommended a proposal to convert from a trust to a corporation through a plan of arrangement that included the acquisition of Silverwing Energy Inc. (Silverwing) and the reorganization with SRX Post Holdings Inc. The plan of arrangement was overwhelmingly approved by over 99 percent of Unitholders at the special meeting held on October 16, 2008 and implemented on November 12, 2008.

Management strongly believes that the corporate structure is better suited to Bonterra's core business model of growth, capital appreciation and income generation. Bonterra has been successful in providing strong returns for investors, however with the federal government's introduction of trust taxation on October 31, 2006 and subsequent legislation, there has been diminished value associated with the income trust structure with negative impacts including prolonged depression in trust unit prices, decreased access to capital and a limited ability to grow based on the "normal growth" guidelines.

Selected benefits of the new corporate structure include:

• The ability to continue to provide income oriented investors with a substantial cash yield. Bonterra intends to continue with a cash dividend policy similar to that followed by the Trust, subject to commodity prices and volumes of production, while allowing Bonterra to aggressively pursue growth opportunities;
• Substantial tax pools of approximately $450 million which will allow Bonterra to extend its taxable horizon to approximately 2021, depending on commodity prices.
• Higher after-tax earnings for investors as dividends are taxed at lower rates than distributions;
• Access to a broader domestic investor base that may result in more financing opportunities;
• Removal of the current foreign ownership limitations of 50 percent of the outstanding trust units, thereby potentially broadening the investor base internationally;
• Removal of the growth limitation which currently exists under the "normal growth" guidelines;
• The ability to increase capital investment over the next several years with a view to providing enhanced returns to investors; and
• Bonterra is now positioned to be valued as a growth-oriented, high-dividend paying corporation with a proven history of accretive growth and long term returns for investors.

What are dividend dates, ex-dividend dates and record dates?

The dividend date is the date on which shareholders are paid the cash dividend. Bonterra typically pays the dividend to its shareholders on the last trading day of the month. The record date is ten trading days prior to the dividend date and the ex-dividend date is two trading days prior to the record date.

Dividends are paid to all investors who hold shares on the date of record. In order to be the shareholder on record, shares must be purchased at least one day prior to the ex-dividend date as trades take three days to settle. Shares purchased on the ex-dividend date would not settle until one trading day after the record date and thus the seller would receive the dividend as the holder of record.

What is Bonterra's hedging policy?

Management and the Board of Directors have reassessed the hedging policy and decided in the near term the Company will not enter into further risk management strategies at this time. This policy will continue to be reviewed.

Operational FAQs

What is Bonterra's production?

Bonterra's average daily production for the first nine months of 2009 was approximately 5,032 BOE per day, an increase of over 18 percent when compared with the corresponding 2008 period. 

What is Bonterra's production mix?

Bonterra's production production mix is comprised of approximately 70 percent crude oil and natural gas liquids and 30 percent natural gas. 

What is Bonterra's reserve life index?

As of December 31, 2008, Bonterra's reserve life index is 18.7 years on a proved plus probable basis.