Bonterra Energy Corp.

Bonterra Energy Corp.

June 26, 2008 23:59 ET

Bonterra Energy Income Trust Increases Cash Distribution for June Payable July 31, 2008

CALGARY, ALBERTA--(Marketwire - June 26, 2008) - Bonterra Energy Income Trust ("Bonterra or "the Trust") (www.bonterraenergy.com) (TSX:BNE.UN) is pleased to announce its distribution to unitholders for the month of June 2008. The record date for the distribution is July 15, 2008, and the ex-distribution date is July 11, 2008. The distribution will be made on July 31, 2008.

The distribution will increase to $0.32 per trust unit from $0.27 per trust unit last month. This is the fourth distribution increase in 2008 and represents an increase of 45 percent from the December, 2007 distribution of $0.22 per trust unit. This increase is mainly attributable to higher commodity prices.

Bonterra's objective is to distribute between 75 and 80 percent of its annual adjusted distribution base (formally "funds flow from operations") to unitholders. Bonterra's high-quality asset base and low production decline rates permit the trust to distribute a larger percentage of its adjusted distribution base and still be able to modestly increase its reserves and production rates on a per unit basis. This can be accomplished while still maintaining a debt to annual adjusted distribution base of less than one year.

The $0.32 monthly distribution represents 75 percent of the estimated adjusted distribution base and should be sustainable as long as prices average $115 Cdn per barrel of crude oil, $9.50 Cdn per MCF for natural gas and a sustained production rate of 4,450 BOEs per day.

Bonterra is a conventional oil and gas royalty trust with operations in Alberta and Saskatchewan. Its units are listed on The Toronto Stock Exchange under the symbol "BNE.UN".

%SEDAR: 00017467E

Contact Information

  • Bonterra Oil & Gas Ltd.
    George F. Fink
    President, and CEO
    (403) 262-5307
    Fax: (403) 265-7488
    or
    Bonterra Oil & Gas Ltd.
    Garth E. Schultz
    Vice President - Finance, and CFO
    (403) 262-5307
    Fax: (403) 265-7488
    info@bonterraenergy.com
    www.bonterraenergy.com