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Bonterra Energy Corp T.BNE

Alternate Symbol(s):  BNEFF

Bonterra Energy Corp. is a Canada-based conventional oil and gas company with operations in Alberta, Saskatchewan, and British Columbia. The Company operates through development and production of oil and natural gas in the Western Canadian Sedimentary Basin segment. Its operating areas include Pembina Cardium and other areas, which include Saskatchewan and Northeast British Columbia. The Company is focused on the development of the Pembina and Willesden Green Cardium lands within central Alberta. It has Shaunavon properties in the Chambery field, which produce medium density crude oil from the upper Shaunavon formation under waterflood. It also has assets in the Prespatou area of northeast British Columbia, which consists almost entirely of natural gas and associated natural gas liquids. It also has an undeveloped Charlie Lake asset that is prospective for light oil in Bonanza, Alberta. The Company has over 116 net sections of contiguous land in the light oil prone Charlie Lake.


TSX:BNE - Post by User

Bullboard Posts
Comment by efficientmyasson Apr 30, 2019 12:27pm
62 Views
Post# 29689272

RE:swimming against the tide

RE:swimming against the tideThere is no reason why they can't de-lever and reward shareholders simultaneously.  

Buying back 2 million shares for around $16 million would look pretty good at some point and the interest savings the company would forego by not using that capital to reduce debt is peanuts ($750k/yr).  alternatively and preferably IMO,  the company could just keep the capex budget at $60mm instead of hitting the high point of their stated range and then you’d have your $16mm buyback funded.  The return on capital deployed to a NCIB vs the return on what you'd get by drilling an additional 8 wells could be massive (with really no incremental risk).  In that scenario, the company wins (or at least doesn’t lose) regardless of what the price of oil does. 


In the picture some, notably you,  have painted about the future (3+years out), those shares would be worth many multiples of the existing price and could be used to materially repair the balance sheet without dilution from where we sit today.  

The company should be taking advantage while they can, the current environment is perfect:  fundamentals greatly improved, a seemingly endless supply of selling pressure and a 6 month trailing volume high enough for the company to get it done reasonably quickly. 

Bullboard Posts