Bonterra Energy Corp T.BNE

Big difference is much less wells but more capital efficient

[Resilience2]

Compare the well slide from May'24 to Aug'24, big difference. They're dropping 3 Cardium wells this year still extra. And around 8 in both of the next years. This will massively extend tier 1 Cardium drilling inventory but more importantly: make BNE much more capital efficient to either FCF or grow when they want. MNT will be lower decline and higher recycle ratio's: 3.3. 

2023 was 38 wells, 2025 will be only 23 wells. 2024 was 26 and 2026 will be 27 wells. 

 

This is in my view to cash flow into the Bond repayment Oct '25 and any additional wells don't have the time to payback for themselves before that. 

Net debt is now constantly dropping each quarter until Q3 2025. With Q1 at $ 133 mln and well withing Q1 divvy range. I expect it to be instated then. 

Basically only 4 months from now. 

They are where they want: in a position of strength and much more sustainable. 

R. 

 

[C185pilot]

Needed the confidence of more wells drilled to make the shift.  A recycle ratio of over 3 is a real company builder.  I predict the plan of 2 wells a yearnin the Montney will increase,  they must have a great landman or broker

[TheRexmember]

I was told a couple more wells to derisk the acreage and they would look at a long term solution for egress in the Montney. They don't want to enter into a take or pay deal for egress until they confirm the viability. So drilling will be limited until then.  My guess is that they wait until after the bond is dealt with next fall before expanding the drill program. Or once CL is at 6000

[TheRexmember]

Great post. 100% agree Resilience.  They have also completed some capex to support future Montney drilling with the tank battery and SW disposal well.  I would like to see better marketing and hedging going forward for gas production. They are leaving a lot on the table there.  next up will be 3 mile CL wells. any idea what the three Montney sections cost?