Bonavista Energy Corporation
TSX : BNP

Bonavista Energy Corporation

June 15, 2012 16:01 ET

Bonavista Energy Corporation Confirms Dividend for July 16, 2012

CALGARY, ALBERTA--(Marketwire - June 15, 2012) - Bonavista Energy Corporation ("Bonavista") (TSX:BNP) confirms that its monthly cash dividend generated from June production will be $0.12 per common share, payable on July 16, 2012. Our long term objective is to maintain a dividend policy that provides an attractive cash return to our shareholders, while reinvesting the remainder of our funds from operations to increase our production and equity value.

Our dividend policy is reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, our commodity hedging program, current operations and future investment opportunities. We continually monitor the impact of all these factors and adjust our dividend and capital programs as conditions dictate. Although we are becoming increasingly concerned about sustained low natural gas prices and the more recent decrease in oil and natural gas liquids pricing, we are determined to preserve the current dividend level through a combination of capital spending adjustments and non-core asset divestitures.

Bonavista has declared this dividend to be paid on July 16, 2012 to common shareholders of record on June 30, 2012, with an ex-dividend date of June 27, 2012. The Board of Directors of Bonavista declared the dividend payable in either cash or common shares at the election of the shareholder. Any common shareholder choosing to receive common shares instead of cash must submit his or her stock dividend confirmation notice no later than 4:30 p.m. (Calgary time) on the fourth business day immediately prior to the record date for the declared dividend payment, being June 26, 2012.

This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.

Stock Dividend Program

At its annual and special meeting of shareholders held on May 3, 2012, the Bonavista shareholders approved the implementation of a Stock Dividend Program which enables common shareholders to elect to receive dividends in the form of common shares at 95% of the weighted average market price calculated 5 days before the payment date and all fees associated with the Stock Dividend Program will be paid by Bonavista. Participation in the Stock Dividend Program is optional.

While the Stock Dividend Program is similar to Bonavista's Dividend Reinvestment Plan, the Stock Dividend Program has certain advantages which are described in more detail in Bonavista's Management Information Circular dated March 19, 2012 which is available on SEDAR at www.sedar.com and on Bonavista's website at www.bonavistaenergy.com. For further information regarding the Stock Dividend Program, please contact Valiant Trust Company at 403-233-2801.

Dividend Reinvestment Plan

Bonavista also currently has a Dividend Reinvestment Plan which enables eligible common shareholders to increase their investment in Bonavista by reinvesting their monthly cash dividend.

Due to the implementation of the Stock Dividend Program, the current Dividend Reinvestment Plan will be terminated on August 15, 2012. As a result, all common shareholders who are currently participating in the Dividend Reinvestment Plan will need to make an election to participate in the Stock Dividend Program and must either contact their broker to enroll or if they are a registered shareholder, complete the stock dividend confirmation notice which may be obtained from Valiant Trust Company.

Forward Looking Statements

Corporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, particularly those pertaining to cash dividends, production volumes, commodity prices, operating costs and drilling results, which are considered reasonable by Bonavista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by Bonavista that actual results achieved during the forecast period will be the same in whole or in part as those forecasts.

Contact Information

  • Keith A. MacPhail
    Chairman & CEO

    Jason E. Skehar
    President & COO

    Glenn A. Hamilton
    Senior Vice President & CFO

    Bonavista Energy Corporation
    1500, 525 - 8th Avenue SW
    Calgary, AB T2P 1G1
    (403) 213-4300
    www.bonavistaenergy.com