Bonterra Energy Corp T.BNE

Alternate Symbol(s): BNEFF

Energy Oil & Gas E&P

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

Bonterra Energy Corp

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Comment by CashGreenGoldon May 07, 2019 3:21pm

30 Views

Post# 29721318

RE:RE:RE:RE:RE:Not a mystery....

".shouldn't they get the capex back in 365 days plus the cashflow from the legacy production....."

You're missing the op costs...

If they produce 112/d, assuming the production mix of 69% liquids, and using $46/boe (q1 figure on $55 WTI and existing spreads, AECO),

You get 1.88mm gross. Then you have operating costs at approx 50%.

So net of $950k approx. On a $2.2mm well, thats a 2.3 year payback undiscounted.

Be careful when you are looking at companies' quoted payback timelines, they are often only referring to gross flows.

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