Bonterra Energy Corp. announces redetermination of credit facility

• Suspension of the monthly dividend (effective April 1, 2020);
• Suspension of the capital program in March, 2020;
• Reduction of monthly operating costs by approximately $1.5 million and general and administrative costs by approximately $0.2 million (~40% per month); and
• The commencement of applications to Federal and Provincial economic stimulus programs from Export Development Canada (EDC), Business Development Bank of Canada (BDC), and the Government of Alberta’s Site Rehabilitation program (SRP).

Given the Company’s low corporate decline rate of approximately 21 percent combined with management’s proactive cost reduction initiatives undertaken to date, Bonterra intends to continue actively reducing net debt through the balance of 2020 assuming current forward commodity prices. The Company suspended its capital program in March in response to the dramatic decrease in global oil demand and prices associated with the COVID-19 pandemic and is currently evaluating the reactivation of a limited capital program in the third quarter of 2020.

Credit Facility Redetermination

Bonterra’s credit facility has been confirmed at $300 million, comprised of a $125 million revolving facility, a $25 million operating facility and a $150 million term loan facility with the revolving period extended to August 31, 2020 and the credit facility maturing on April 28, 2021. The Company has established a 2020 maintenance capital budget of approximately $27 million, with the ability to expand this budget with Board and unanimous approval from the lending syndicate. Bonterra anticipates the credit facility will provide sufficient liquidity to execute on its business plan through the balance of 2020.

Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia, focused on its strategy of long-term, sustainable growth and value creation for shareholders. The Company’s shares are listed on The Toronto Stock Exchange under the symbol “BNE”.