Bonterra Oil & Gas Ltd. Announces Expansion of Banking Facility, Provides an Operational Update and Enters into Agreement to Acquire Cobalt Energy Ltd.

About this update from Bonterra Energy Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, May 6 /CNW/ - Bonterra Oil & Gas Ltd. ("Bonterra" or "the\nCompany") (www.bonterraenergy.com) (TSX: BNE) has entered into a new\nsyndicated banking facility effective April 29, 2009. The banking syndication\nis led by the Canadian Imperial Bank of Commerce and includes the Royal Bank\nof Canada and Alberta Treasury Branches. The maximum borrowing amount of the\nnew facility has been increased to $120 million from $100 million.\n\n\nThe new banking facility consists of a $100 million syndicated revolving\ncredit facility and a $20 million non-syndicated revolving credit facility.\nThe terms of the new facility provides that the loan is revolving until April\n28, 2011 and is subject to an annual review and has no fixed payment\nrequirements.\n\n\nOperational Update:\n\n\nBonterra is pleased to announce production results from a recently\ndrilled Cardium horizontal well in the Pembina area of west central Alberta.\nBonterra has a 25 percent working interest and is the operator of the\n1-25-047-03 W5M ("1-25") well that produced at an average rate of\napproximately 250 barrels of oil per day in February 2009, its first month of\nproduction. The well is currently producing at approximately 145 barrels of\noil per day and 85 mcf per day of solution gas that is being conserved.\n\n\nBonterra has a very large land position in the Pembina field with a\nsignificant amount of undeveloped land with similar reservoir characteristics\nto the 1-25 well with working interests ranging from 25 to 100 percent. The\nCompany will be drilling additional horizontal Cardium wells in Pembina to\nfurther evaluate the play in 2009.\n\n\nProposed Plan of Arrangement:\n\n\nBonterra is also pleased to announce that it has entered into an\nagreement through a proposed plan of arrangement to acquire all of the issued\nand outstanding shares of Cobalt Energy Ltd. (Cobalt). Cobalt is a junior oil\nand gas exploration and production company operating in western Canada with\nproduction of approximately 85 barrels of oil equivalent per day. Cobalt's\nmain assets consist of a 43.18 percent working interest in the above discussed\n1-25 well and additional lands with Cardium horizontal well potential in\nPembina with working interests ranging between 25 and 43.18 percent. These\nlands are operated by Bonterra.\n\n\nCl...

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