Bonavista Energy Trust

Bonavista Energy Trust

December 17, 2007 09:45 ET

Bonavista Energy Trust Announces Strategic Core Area Property Acquisition

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2007) - Bonavista Energy Trust ("Bonavista") (TSX:BNP.UN) is pleased to announce it has entered into an agreement to acquire certain producing properties in the Willesden Green area of Alberta and the Fireweed area located in Northeast British Columbia. These assets are characterized by high working interests, mainly operated and contain significant overlap with our existing base of operations in both of these areas. We have currently identified 36 drilling locations on the existing undeveloped land base of approximately 116,000 net acres, along with infrastructure synergies to optimize production. This acquisition is consistent with Bonavista's strategy of acquiring high quality, liquids rich, natural gas and oil assets with significant low risk development opportunities within our existing areas of operations.

Current production from the acquired assets is approximately 3,900 barrels of oil equivalent per day (boe/d), including 14 million cubic feet per day of natural gas, 700 barrels per day of associated natural gas liquids and 850 barrels per day of light crude oil. The acquired production is 74% operated with an average working interest of 76%. This transaction will increase Bonavista's corporate production by over 7% to approximately 57,000 boe/d upon closing. Proven and Probable Reserves are estimated at 10.8 million barrels of oil equivalent (7.7 mmboes proven) and is based on an NI 51-101 independent engineering report dated August 1, 2007 using the revised royalty calculations announced in October, 2007.

The acquisition has an effective date of August 1, 2007 and is expected to close in mid to late January 2008, with the completion of the transaction subject to normal regulatory conditions. The cash price on closing for these assets is estimated to be approximately $163 million and is expected to be funded from existing bank lines.

Bonavista will be reviewing the impact of this acquisition on its overall 2008 capital program and will provide further guidance upon the successful closing of this acquisition in mid to late January.

Bonavista Energy Trust is a Calgary based intermediate sized oil and gas royalty trust with a balanced production base. The Trust was created through the reorganization of Bonavista Petroleum Ltd. in July 2003. Our base of operations are geographically focused within Alberta, Saskatchewan, and British Columbia, and possess a high level of operated properties. Bonavista is committed to maintaining its emphasis on operating high quality, low cost oil and natural gas properties, delivering consistent distributions to its unitholders and ensuring financial strength and sustainability. Bonavista's trust units trade on the Toronto Stock Exchange under the symbol BNP.UN.

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 distributions, 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 forecast.

Contact Information

  • Bonavista Energy Trust
    Keith A. MacPhail
    President & CEO
    (403) 213-4300
    Ronald J. Poelzer
    Executive Vice President & CFO
    (403) 213-4300
    700, 311 - 6th Avenue SW
    Calgary, AB T2P 3H2