Bonterra Energy Corp.

Bonterra Energy Corp.

February 25, 2009 23:59 ET

Bonterra Energy Income Trust - Tax Information for 2008

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2009) - Bonterra Oil and Gas Ltd. (Formally Bonterra Energy Income Trust - "the Trust") (www.bonterraenergy.com) (TSX:BNE) (formally BNE.UN) is pleased to provide the following tax information to assist the Trust's former Unitholders in the preparation of their 2008 income tax returns.



Canadian Tax Information

The tax breakdown of the distributions is as follows:
Percentage
----------
Taxable Income (Other Income) 85.16%
Return of Capital 14.84%
----------
100.00%
----------
----------


It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

Joint Tax Election Package

Bonterra Oil & Gas Ltd. (Bonterra) has made available a Joint Tax Election package which contains a letter of instruction for eligible former Bonterra Energy Income Trust Unitholders. A Unitholder who is an Eligible Holder (see definition below), and under the Bonterra Arrangement, exchanged Trust Units for Bonterra Shares, may make a joint election with Bonterra pursuant to subsection 85(1) of the Tax Act (Form T2057) (or, in the case of a holder that is a partnership (Form T2058), pursuant to subsection 85(2) of the Tax Act) and thereby obtain a full or partial tax-deferred "rollover" for Canadian income tax purposes, depending on the amount specified in that election (the "Elected Amount") and the adjusted cost base to the Unitholder of such Trust Units at the time of the Bonterra Arrangement. Eligible Holders may elect so as not to realize any capital gain for the purposes of the Tax Act on the Bonterra Arrangement.

Only Eligible Holders are permitted to make this election jointly with Bonterra. An Eligible Holder is a former holder of Trust Units who is:

- A resident of Canada for purposes of the Tax Act, other than those exempt from tax under the Act, such as an RRSP, RRIF, RESP or pension plan; or

- A partnership that is a Canadian partnership for the purposes of the Tax Act and if one or more of the partners would be an Eligible Holder if such partner held the Trust Units directly.

The Joint Tax Election package has been mailed to all registered shareholders. For beneficial holders, please contact your broker or brokerage representative to receive a copy of the Joint Tax Election package. In addition, you may contact Bonterra Oil & Gas Ltd. at (403) 262-5307 or visit www.bonterraenergy.com to obtain a copy of the Joint Tax Election package.

Each Eligible Holder, who chooses to make a Joint Tax Election, is solely responsible for ensuring Form T2057 or T2058, as applicable, is properly completed.

THIS MATTER REQUIRES YOUR IMMEDIATE ATTENTION. BONTERRA AGREES ONLY TO EXECUTE AND FILE DULY COMPLETED FORMS RECEIVED BY IT ON OR BEFORE MARCH 31, 2009.

US Tax Information

Trust Units Held Outside a Qualified Retirement Plan

With respect to cash distributions paid during the year to U.S. individual Unitholders, 17.71 percent should be reported as a return of capital (to the extent of the Unitholder's U.S. tax basis in their respective units) and 82.29 percent should be reported as "qualified dividends".

Kindly consult your tax advisor for further information.

Trust Units Held Within a Qualified Retirement Plan

No amounts are required to be reported on a Form 1040 where Bonterra trust units are held within a qualified retirement plan.

Bonterra Oil and Gas Ltd. (Formally Bonterra Energy Income Trust) is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia. Its common shares are listed on The Toronto Stock Exchange under the symbol "BNE".

%SEDAR: 00003132E

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
    or
    Bonterra Oil & Gas Ltd.
    Kirsten Kulyk
    Manager, Investor Relations
    (403) 262-5307
    Fax: (403) 265-7488
    info@bonterraenergy.com
    www.bonterraenergy.com