Shaunavon Area, Southwest Saskatchewan

Bonterra’s Shaunavon properties are located in the Chambery field and produce medium density crude oil from the upper Shaunavon formation.  The property is being produced under waterflood.  The wells in this area are generally long-life with stable, low-decline production profiles and Bonterra will be optimizing the waterflood to further increase profitability from the existing property. 

In 2009, Bonterra divested a portion of its Shaunavon oil production consisting of approximately 210 barrels per day of medium gravity oil production and 18.5 section of land primarily in the Whitemud area of Southwestern Saskatchewan.  The proceeds of disposition included cash of $23,729,000 and 30,769,200 common shares in the acquiring company (approximately 4.2 percent of the company at the time of the transaction). Proceeds from the sale were used to accelerate Bonterra's horizontal Pembina Cardium development program.  Bonterra's current production from its remaining properties is approximately 120 BOE per day.