Bonterra continues to provide value to shareholders through its holdings in the Pembina Cardium in central Alberta, one of Canada’s largest oil fields. The pool is characterized by stable production, high quality oil and high netbacks with only 14 percent of original oil in place having been produced. During 2012 and 2013, Bonterra increased its land position in the Cardium through two key acquisitions and this concentrated asset base now represents approximately 93 percent of Bonterra’s Proved plus Probable (P+P) reserves.
The acquisitions were a strong strategic fit for the Company resulting in significant development potential and ongoing value creation. The revitalization of the Cardium through horizontal drilling and completion technology has marked an evolution in the Company’s pool exploitation strategy from conventional development to a more resource play-based development program. However, Bonterra’s fundamental operational strategy remains unchanged; provide production and reserves growth on both a total and per share basis, effectively manage costs and seek out new operational efficiencies.