Production Update

Bonterra's production volumes averaged 5,628 BOE per day in 2010, an increase of 13 percent over 2009 levels.  Production was comprised of approximately 69 percent crude oil and natural gas liquids and 31 percent natural gas. Production increases can be mainly attributed to the successful 2010 Cardium horizontal drill programs.   

Subject to commodity prices and regulatory policies, Bonterra is projecting 2011 capital expenditures of $50 to $60 million. Most of the capital will once again be focused on the Pembina Cardium horizontal drilling program with a minimum of 20 gross horizontal wells planned mainly in the halo area of the Pembina and Willesden Green fields with the remainder in the main pool of the Pembina field.  Production is expected to average between 6,200 to 6,500 BOE per day.