RBC Capital Markets’
Cardium Conference
February 23, 2010
TSX: BNE
FORWARD LOOKING INFORMATION
Certain statements contained in this Presentation include statements which contain words such as “anticipate”, “could”, “should”,
“expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not
historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or
may occur in the future, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation
and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking
information in this Presentation includes, but is not limited to: expected cash provided by continuing operations; cash distributions;
future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other
development trends of the oil and gas industry; business strategy and outlook; expansion and growth of our business and
operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit
risks; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected future developments, as well as other factors we believe are
appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and
may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general
economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as
how such laws and regulations are interpreted and enforced; the ability of oil and natural gas trusts to raise capital; the effect of
weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas
product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future
obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of
which are beyond our control. The foregoing factors are not exhaustive.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking
information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will
transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, Bonterra disclaims any
intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or
otherwise.
The forward-looking information contained herein is expressly qualified by this cautionary statement.
2
BNE (TSX): CURRENT SNAPSHOT
•
•
•
•
•
•
•
•
•
•
Shares issued: ~ 18.5 million
Market capitalization: ~ $648 million
Directors/employees own ~25 percent
Return 70-80 percent of funds flow* to shareholders
Current monthly dividend: $0.18/share
Current annualized yield: 6.2 percent**
Reserve Life Index (P+P): 20.1 years
Production Profile: 70% oil / 30% nat. gas
Drilling inventory in excess of 14 years
Consistent production and reserves growth on a per
share basis
• High netbacks
• Tax pools: ~ $487 million
* Funds flow is not a recognized measure under GAAP. For these purposes, the Company defines funds flow as funds provided by
operations before changes in non-cash operating working capital items excluding gain on sale of property and asset retirement
expenditures.
** Based on February 19, 2010 closing price of $35.04
3
BONTERRA RESERVE SUMMARY
(Prior to Royalties)
Proved (75.6% Oil & NGLs)
Oil
(Mbbl)
Gas
(MMcf)
NGLs
(Mbbl)
BOE
% of Total
Corporate
Company Total
17,752
36,642
1,468
25,327
100
Pembina Total
16,593
27,089
1,380
22,487
88.8
14,522
20,007
1,268
19,125
75.5
1,988
765
40
2,156
8.5
Company Total
25,675
49,539
1,893
35,824
100
Pembina Total
24,157
36,184
1,784
31,972
89.2
17,996
25,092
1,574
23,752
66.3
6,056
2,223
112
6,540
18.3
Pembina Cardium Conventional
Pembina Cardium Horizontal
Proved Plus Probable (77.0% Oil & NGLs)
Pembina Cardium Conventional
Pembina Cardium Horizontal
* Tables may not add due to rounding
4
PEMBINA CARDIUM HZ WELL RESERVES
Mbbl / Well
(Typical 100% Gross)
‘Halo’ Area with Successful Hz Producers
‘Halo’ Edge with Hz Production
‘Halo’ Area with Limited Hz Production History
‘Halo’ Area with Offsetting Vertical Well Production History
Wells in Waterflooded Portion of Main Pembina
Cardium Pool
Proved
P+P
MBoe / Well
Proved
P+P
145
250
158
272
66
125
72
136
0
250
0
272
50-75
125-250
54-82
136-272
75
125
82
136
5
FD&A COSTS
2009 F&D
Costs per
BOE (1)(2)
2008 F&D
Costs per
BOE (1)(2)
2007 F&D
Costs per
BOE (1)(2)
2009
Three
Year
Average
2008
Three
Year
Average
Proved Reserve Additions
$16.23
$7.00
$2.15
$8.46
$11.55
Proved plus Probable Reserve Additions
$11.01
$6.82
$2.02
$6.62
$9.02
2008
Three
Year
Average
Proved Reserve Net Additions
Proved Plus Probable Reserve Net Additions
2009 FD&A
Costs per
BOE (1)(2)(3)
2008 FD&A
Costs per
BOE (1)(2)(3)
2007 FD&A
Costs per
BOE (1)(2)(3)
2009
Three
Year
Average
$13.25
$8.67
$2.74
$8.22
$12.30
$8.93
$7.47
$2.68
$6.36
$9.45
Notes: The above figures have been calculated in accordance with National Instrument 51-101 (NI 51-101) where the 2009 F&D Costs equate to the total exploration and development
costs incurred by the Company of $28,726,000 (includes $5,814,000 for undeveloped land) as calculated according to GAAP plus or minus the yearly change in estimated future
development costs as calculated by Sproule Associates Limited ($34,960,000 for proved and $51,538,000 for proved and probable). FD&A costs include acquisition costs of $7,105,000
as well as proceeds of disposition of $30,191,000.
The following precautionary notes have been provided as required by NI 51-101.
(1)
Barrels of Oil Equivalent may be misleading, particularly if used in isolation. A BOE conversion ratio of 6MCF:1bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the wellhead.
(2) The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally
will not reflect total finding and development costs related to reserve additions for that year.
(3) FD&A costs are net of proceeds of disposal and the FD&A costs per BOE are based on reserves acquired net of reserves disposed of.
6
PEMBINA CARDIUM
7
PEMBINA CARDIUM
8
AREA OF INITIAL DEVELOPMENT
9
AREA OF DEVELOPMENT
10
THE BONTERRA ADVANTAGE
Bonterra is the third largest operator in the
Pembina Cardium
Approximately 160 gross (117 net) Cardium
sections including 27.5 gross (23.9 net) in the
‘Halo’
89.2% of Proved plus Probable Reserves in
Pembina
Greater than 1,000 gross potential vertical
locations if drilled to 40 acre spacing; 63
locations with reserves assigned
Up to 65 gross (60 net) potential additional
locations at 4 wells per section on ‘Halo’ lands
with no reserves assigned
11
901, 1015 – 4th Street SW Calgary, AB T2R 1J4
Telephone: (403) 262-5307 Fax: (403) 265-7488
Website: www.bonterraenergy.com
12