Bonterra Oil & Gas Ltd. Announces Fourth Quarter and Annual 2008 Results

About this update from Bonterra Energy Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, March 24 /CNW/ - Bonterra Oil & Gas Ltd. ("Bonterra" or the\n"Company") (www.bonterraenergy.com) (TSX: BNE.UN) is pleased to announce its\nfinancial and operational results for the three months and fiscal year ended\nDecember 31, 2008.\n\n\nReorganization Highlights\n\n\nBonterra successfully converted to a corporation in November, 2008. The\nconversion provides investors with enhanced certainty in regard to Bonterra's\nability to remain a high-income generating investment while negating the\noverhang associated with the Canadian federal government's legislation to tax\ntrusts beginning in 2011. Select benefits of the new corporate structure\ninclude:\n\n\n- The ability to continue to provide income oriented investors with a\n substantial cash yield. Bonterra intends to continue with a cash\n dividend policy similar to that followed by the Trust;\n- Substantial tax pools of approximately $465 million which will\n currently allow Bonterra to extend its taxable horizon beyond 2018,\n subject to commodity prices;\n- Higher after-tax earnings for investors as dividends are taxed at\n lower rates than distributions;\n- Removal of the growth limitation which currently exists under the\n "normal growth" guidelines; and\n- The flexibility to increase capital investment over the next several\n years with a view to providing enhanced returns to investors.\n\nFinancial Highlights\n\n- Net earnings increased substantially to $55.4 million or $3.25 per\n share as compared to $30.4 million or $1.79 per unit in 2007;\n- Cash flow from operations totaled $69.6 million ($4.07 per share) in\n 2008, an increase of 35 percent year over year;\n- Cash payment per share/unit to investors totaled $3.12, a substantial\n increase from the 2007 level of $2.64;\n- The payout ratio was 77 percent of cash flow, within the Company's\n annual target of 75 to 80 percent and a decrease from the 2007 level\n of 87 percent.\n\nOperational Highlights\n\n- Production increased to an all time high of 4,346 barrels of oil\n equivalent (BOE) per day as a result of its internal development\n program and an acquisition during the year. Fourth quarter production\n totaled 4,587 BOE per day, an increase of nine percent over the same\n period last year and the 2009 exit rate was 4,950 BOE per day;\n- Reserves increased to 2...

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