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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 Resilience2on May 15, 2024 1:09am
110 Views
Post# 36040349

RE:RE:Is what it is…

RE:RE:Is what it is…I thought about it and think they will and should keep it.

Charlie Lake drills are less costly but have lower reserves and so a lower recycle ratio. Montney's recycle ratio is 3.5 vs 2 for CL, a 75% increase. 

So what's actually happening is they are cycling Cardium cash flow into CL and that CF (partly) into Montney, improving both pay-back as recycle ratio's.

This all before they have to pay back the bonds in Oct 2025; they will use CL and Montney to CF into that debt repayment and complement any shortfall by ther bank debt (which they btw just re-confirmed and have $ 70 mln + room on). The drop in interest cost will help cash flow again, as well paying back the term loan as we go along. . 

Pretty brilliant and making the company much more sustainable and increasing their ability to sustain (high) dividends for longer. 

R. 

  
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