Bonterra Energy Corp.

Bonterra Energy Corp.

May 27, 2009 23:59 ET

Bonterra Oil & Gas Ltd. Announces Closing of $18 Million Bought Deal Offering

CALGARY, ALBERTA--(Marketwire - May 27, 2009) -

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

Bonterra Oil & Gas Ltd. (TSX:BNE) (the "Corporation" or "Bonterra") has announced today that it has closed the private placement previously announced on May 7, 2009. The private placement was conducted with a syndicate of underwriters co-led by Research Capital Corporation and J.F. Mackie & Company Ltd. and including FirstEnergy Capital Corp. and Haywood Securities Inc. (collectively, the "Underwriters") and consisted of the issuance of an aggregate of 1,068,000 common shares (including 178,000 common shares issued pursuant to the exercise in full of the Underwriters' over-allotment option) at a price of $16.85 per share for gross proceeds of $17,995,800.00. The Underwriters were paid a cash commission on the gross proceeds of the private placement. The net proceeds received by the Corporation from the private placement are expected to be used to reduce debt, to conduct development activities on the Corporation's oil and gas properties and for general working capital.

The Corporation is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia. The common shares of the Corporation are listed on the Toronto Stock Exchange under the symbol "BNE".

The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of applicable securities laws, including but not limited to the use of the net proceeds of the private placement. Forward-looking statements and information are often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions and may describe expectations, opinions or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of Bonterra as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to risks, uncertainties and other factors that are beyond the control of Bonterra, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Assumptions relating to certain forward-looking information contained in this press release are set out herein. Although Bonterra believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of Bonterra contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.

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Contact Information

  • Bonterra Oil & Gas Ltd.
    George F. Fink
    Chairman and Chief Executive Officer
    (403) 262-5307
    Fax: (403) 265-7488

    Bonterra Oil & Gas Ltd.
    Garth E. Schultz
    Vice President, Finance and Chief Financial Officer
    (403) 262-5307
    Fax: (403) 265-7488

    Bonterra Oil & Gas Ltd.
    Suite 901, 1015 - 4th Street S.W.
    Calgary, Alberta, T2R 1J4