Production Update

Bonterra's production volumes averaged 4,994 BOE per day in 2009, an increase of 15 percent over 2008 levels.  Production was comprised of approximately 63 percent crude oil and natural gas liquids and 37 percent natural gas. Production increases can be attributed to the 2009 Pembina Cardium horizontal and vertical drill programs, improved operations and acquisitions offset by the disposition of a portion of its Shaunavon property (approximately 210 BOE per day).  As well, the Company's development program was executed during the second half of the year.  As such, new production came on later in the year and thus its impact on the annual average production rates was moderated. 

Subject to commodity prices and regulatory policies, Bonterra is projecting 2010 capital expenditures of $40 to $50 million.  Most of the capital will once again be focused on the Pembina Cardium horizontal drilling program with 20 to 30 gross additional wells planned in 2010.  Production is expected to average between 5,700 to 6,000 BOE per day.

Production:

Production Mix: