Bonterra Energy Income Trust
TSX : BNE.UN

October 17, 2008 08:00 ET

Bonterra Energy Income Trust Announces Securityholder Approval of Arrangement

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2008) -

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Bonterra Energy Income Trust ("Bonterra Trust") (www.bonterraenergy.com) (TSX:BNE.UN) is pleased to announce that the holders ("Unitholders") of trust units of Bonterra Trust ("Trust Units") and holders of options to purchase Trust Units (collectively, "Trust Securityholders") have approved the previously announced plan of arrangement involving Bonterra Trust, Bonterra Energy Corp. ("Bonterra"), Novitas Energy Ltd. ("Novitas") and SRX Post Holdings Inc. (to be renamed Bonterra Oil & Gas Ltd. ("New Bonterra")) and the Trust Securityholders (the "Arrangement") at the special meeting of the Trust Securityholders held on October 16, 2008 (the "Meeting"). Trust Securityholders voted 99.7% in favour of the Arrangement. In addition, at the Meeting, Unitholders also approved a new stock option plan for New Bonterra.

Pursuant to the Arrangement, New Bonterra will acquire all of the issued and outstanding Trust Units by issuing common shares ("New Bonterra Shares") to Unitholders on a one-for-one basis. In addition, Bonterra and Novitas, which currently hold the operating assets of Bonterra Trust, will amalgamate to form a new operating subsidiary of Bonterra Trust. Assuming that the final approval of the Court of Queen's Bench of Alberta is obtained on October 22, 2008 and subject to other conditions and approvals being met, it is expected that the Arrangement will be completed on or about November 14, 2008. Completion of the Arrangement is subject to various conditions and approvals as detailed in the joint management information circular of Bonterra Trust and Silverwing Energy Inc. ("Silverwing") dated September 17, 2008 (the "Information Circular"). A detailed description of the Arrangement is contained in the Information Circular, a copy of which is available on SEDAR at www.sedar.com.

The holders (the "Silverwing Securityholders") of securities of Silverwing have also approved the previously announced plan of arrangement involving Silverwing, Bonterra Trust, Bonterra and the Silverwing Securityholders (the "Silverwing Arrangement") at the special meeting of Silverwing Securityholders held on October 16, 2008. Silverwing Securityholders voted 99% in favour of the Silverwing Arrangement.

Bonterra Energy Income Trust 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".

Advisory Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "may", "will", "should", "believe", and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by Bonterra Trust, including expectations and assumptions concerning the timing of receipt of regulatory and securityholder approvals. Although Bonterra Trust believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Bonterra Trust can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. This press release contains forward-looking statements and information concerning the anticipated completion of the proposed Arrangement and the anticipated timing for completion of the Arrangement. Bonterra Trust has provided these anticipated times in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the timing of receipt of the necessary regulatory and court approvals and the time necessary to satisfy the conditions to the closing of the Arrangement. These dates may change for a number of reasons, including, but not limited to, inability to secure necessary regulatory or court approvals in the time assumed or the need for additional time to satisfy the condition to the completion of the Arrangement. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these times. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Bonterra Trust undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Bonterra Energy Income Trust
    George F. Fink
    President, and CEO
    (403) 262-5307
    (403) 265-7488 (FAX)
    or
    Bonterra Energy Income Trust
    Garth E. Schultz
    Vice President - Finance, and CFO
    (403) 262-5307
    (403) 265-7488 (FAX)
    Website: www.bonterraenergy.com