Bonterra Oil & Gas Ltd. Confirms New Rules Governing the Conversion of Trusts to Corporations

About this update from Bonterra Energy Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, April 9 /CNW/ - Bonterra Oil & Gas Ltd. (the "Corporation")\n(www.bonterraenergy.com) (TSX: BNE) wishes to inform former unitholders\n(Former Unitholders) of Bonterra Energy Income Trust (the "Fund") who held\nunits of the Fund (Fund Units) at the time of its conversion to the\nCorporation on November 12, 2008, that they may be eligible to defer any\ncapital gain resulting from the exchange (the "Exchange") of their Fund Units\nfor shares of the Corporation without the need to complete and file any tax\nelection forms. Recently enacted amendments to the Income Tax Act (Canada)\n(Tax Act) contain new rules governing the conversion of trusts to corporations\n(Conversion Rules).\n\n\nThe new Conversion Rules provide an automatic tax-deferred exchange of\nFund Units for shares in the Corporation if certain conditions are satisfied. \nWith such conditions having been satisfied and providing that a Former\nUnitholder has not made an election under section 85 of the Tax Act in respect\nof the Exchange, a Former Unitholder will generally be considered to have\ndisposed of the Fund Units and to have acquired shares in the Corporation at\nan amount equal to the cost amount of the Fund Units exchanged, such that no\ncapital gain or loss is realized on the Exchange. A Former Unitholder who\nwishes to instead make an election under section 85 of the Tax Act in respect\nof the Exchange may do so, as more particularly described in the Joint\nInformation Circular dated September 17, 2008.\n\n\nFormer Unitholders should consult their own tax advisors for advice with\nrespect to the tax consequences to them of the Exchange with regard to their\nparticular circumstances.\n\n\nAbout Bonterra Oil & Gas Ltd.\n\n\nBonterra Oil & Gas Ltd. is a conventional oil and gas corporation with\noperations in Alberta, Saskatchewan and British Columbia. The shares are\nlisted on The Toronto Stock Exchange under the symbol "BNE".\n\n\n%SEDAR: 00003132E\n\n\n","length":2065,"tagName":"div"}]

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