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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

Comment by TheRexmemberon Mar 05, 2024 12:25am
134 Views
Post# 35915011

RE:RE:RE:Awesome news.

RE:RE:RE:Awesome news. I like the well sizes better - easier to deal with wells under 5 million than over 10 million when cash flow is under 150 million. Optionality for multiple play types is great, still focused on light oil which I also like. The acquisition / entry price was very reasonable. Nice to have some infrastructure ready to go to - really helps with IRR. Might kick ROC down the road a quarter or two, hard to say. I want to see if there is an impact on the drilling budget on Thursday. To add 4 charlie lake wells at 3-5 million each - do they keep the Cardium drilling consistent or cut back 4-6 wells. Or defer the second 10 million dollar Montney well into 2025, drill 30 wells as planned and leave 6-10 ducs going into December. No point in blowing the budget with higher gas weighted production yet. Obviously this was under way before Tony became president but he has really helped move these forward. They have some interesting options now. Disappointed that PNE cut the dividend so quickly. I think they should have waited a quarter. This gas price drama is going to correct faster than most expect. I did think they should have been more aggressive hedgers the last two years with such a high dividend though. NGL percentages are also a little higher than I thought at slightly more than half of liquids. NGL prices are in the low 40s for them. YGR is gong to feel that too. I hate these one off hedging strategies. Hedge a little all the time, be a bit opportunistic with a small percentage and let the rest ride on the spot market.
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