The corporate acquisition of Silverwing in late 2008 created a new core area in the Prespatou area of northeast British Columbia (NEBC) with significant potential for further development. The properties consist almost entirely of natural gas and associated natural gas liquids with production of approximately 535 BOE per day.
Upon acquisition of this property, the Company focused on integrating the properties into its asset base and was able to increase production in the area by participating in the drilling of two gross (0.4 net) gas wells in early 2009.
Bonterra focused its 2009 capital development program on its Pembina Cardium properties to take advantage of the higher crude oil pricing environment compared to natural gas pricing and to take advantage of the Alberta government’s short term royalty incentive plan. The Company is re-evaluating the geology of the entire area to access potential opportunities and identify new ones. The 2010 development plans will focus on optimization of production from existing well bores with its magnitude depending upon commodity prices.