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 Cardboard1on Oct 10, 2019 3:23pm

137 Views

Post# 30218783

RE:RE:RE:RE:RE:RE:RE:RE:Odd trading

A dividend raise cannot and will not be implemented.

The reason is pretty simple as banks are looking to cut bank lines in November in semi-annual review to better reflect oil price risk and Redwater ruling on decommissioning liabilities.

BNE has its bank line at $340 million capacity while they had $324 million in net debt (including working capital deficit) at June 30. Moreover, NPV of ARO's is $154 million and now considered ahead of bank debt in a banruptcy scenario or Redwater ruling.

So it is tight and they will be required to keep on reducing debt as banks don't want them to fail and be forced to sell assets at $20,000 per flowing which would not cover their loan.

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