Bonterra Energy Corp T.BNE

So many good companies at great prices right now

[TheRexmember]

TVE picked up the best available acreage in Delta Stream. Like CPG and WCP when there is core acreage available sometimes you have to pay up. Headwater probably should have paid up. 

Pretty much anyone could pay a massive premium for BNE and make an accretive buy. 

BNE is in much better financial shape than thought though. Usind 74 dollar oil for the last 9 months of the year does generate more than 70 million in free cash flow. 

the term out costs 18 million but it also reduces total term debt by 20%. The extra dozen wells drilled this year was to cost something around 30-35 million. Facilities money is already spent. 

they could easily stay flat and add 40 million plus in cash to the balance sheet with weaker prices while also reducing debt by 18 million. Balance sheets are better everywhere right now. 

Sohaib has a very interesting video interview with Schmit at TVE - Clearwater and Seal areas have 60 million barrels ooip per section versus 4 million in their Cardium lands. All the TVE acreage is up for sale outside of Charlie Lake or Clearwater.

[kavern23]

Rex how do you get these numbers to work? "Usind 74 dollar oil for the last 9 months of the year does generate more than 70 million in free cash flow. " I think BNE is on pace to spend 134m ish capex unless they slow down. Q1 60M capex, Q2 14m, Q3 30m and Q4 30m...equals 134M Anytime BNE does 9-10 wells a Q...looking at least 30m spend. So last 9 months capex would be 14+30+30 =74m

[TheRexmember]

The way I presented it might be confusing. 70 million fcf for the full year if WTI averages 74.00 for the last nine months. It was higher in Q1.  I took the  numbers  from the Q1 update and the presentation - basically repeating mgt guidance.  About half of total annual capex spending occurred in Q1. They are guiding around 125 MM total capex I think.  from the

[kavern23]

Big advantage Clearwater has in current comoddity enviro is lots of them wells hold at 120-150 barrels of oil a day for all 12 months of first year.  It doeesnt matter as much if oil prices fluctate compared to a cardium well. With a cardium well producing so much oil in first 3-6 months...oil prices cant be low during this...never have a chance to recover. A cardium well can turn to a

[TheRexmember]

The Clearwater is really just a phenomenal reservoir plus the lack of fracking is so much cheaper. TVE has one well that produced 180,000 barrels and is still at 400 b/d on water flood. A crazy return. the one thing almost unique to BNE today is that they use an older style of drilling that is cheaper per well. Most companies have moved on to ERH and pad drilling. Sometimes right sizing the tech

[kavern23]

Rex we must be missing some additional infor as wouldnt it make more sense for BNE to stop capex, sure production would fall wihout new wells but CF must stil be over 20 m a q. Sure it early but Cardium is like only play in Alberta that isnt being drilled....just BNE going.  It cant be flood or fires for others as other companyes are drilling in other plays in central alberta like glauconite

[kavern23]

I think Saturn Oil and Gas is most likely to get TVE land. Probably a matter of financing and they seem too be agressive and can get capital when price is right. I think right now OBE is in a better shape to bid on things in Cardium but TVE stuff wouldnt have obvious synergies. Saturn is at like 8.8k boe a day in Cardium so probably looking for more scale. And they tackle mature stuff.

[TheRexmember]

They were my guess since SOIL  seems to have unlimited access to deal flow, share issues and debt markets. Probably going to get tagged with the serial acquirer discount pretty though. They have built a 30,000 boe/d producer in record time.  TVE killed it on every financial metric with their acquisitions and have had a brutal time with the stock price this year.  i wonder if