Bonterra Energy Announces Year-End 2025 Results and Reserves Evaluation; Achieves Record Annual Production
Executive Summary
- Bonterra reported record annual production of 15,513 BOE/d for 2025, a 5% increase YoY, and reaffirmed 2026 production guidance of 16,200‑16,400 BOE/d.
- The company completed the Bonanza asset acquisition (≈760 BOE/d low‑decline oil) for $15.3 M, expanding its Charlie Lake footprint and adding 21 top‑tier drilling locations.
- Independent Sproule reserves evaluation shows 3% growth in TP and TPP reserves, with a TPP Reserve Life Index of 19.4 years and improved economics (F&D $12.72/BOE TP, $14.93/BOE TPP; recycle ratios 2.1× TP, 1.8× TPP).
Key Details
- Financial Highlights
- Revenue (realized oil & gas sales): C$247.9 M (down from C$279.96 M in 2024).
- Funds flow: C$94.2 M; Adjusted free funds flow: C$17.2 M (+65% YoY).
- Net earnings: (C$17.1 M) loss, driven by a one‑time debt extinguishment cost of C$11.6 M.
- Capital expenditures: C$69.9 M (in line with guidance).
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Net debt at year‑end: C$179.0 M; net‑debt/EBITDA ratio 1.6×.
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Operating Highlights
- Q4 2025 average production: 15,254 BOE/d.
- Field netback (2025): $22.05/BOE; cash netback: $16.63/BOE.
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Production cost average: $16.69/BOE (slightly higher than 2024).
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Bonanza Asset Acquisition
- Closed 12‑Dec‑2025 for C$15.3 M cash.
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Added ~760 BOE/d low‑decline oil production and 41 net sections of land, plus 21 top‑tier drilling locations.
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Reserve Update (Sproule Report)
- Proved Developed Producing (PDP): 34.3 MMBOE (unchanged YoY).
- Total Proved (TP): 87.8 MMBOE (+3%).
- Total Proved + Probable (TPP): 109.7 MMBOE (+3%).
- NPV (10% discount) – TPP: C$1.2 B, TP: C$859 M, PDP: C$468 M.
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Reserve replacement: 99% PDP, 150% TP, 164% TPP.
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2026 Outlook
- Production guidance: 16,200‑16,400 BOE/d (≈50‑52% oil & liquids).
- Capital spend guidance: C$75‑80 M, focused on Cardium optimization and Charlie Lake/Montney expansion.
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Hedge program covering ~48% of crude and 25% of gas production for H1 2026; additional WTI price contracts secured for H2 2026 (55–81 USD/bbl).
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Drilling Activity
- Charlie Lake: 3 new wells drilled in Q1 2026 (2 completed, 1 to be completed by end‑Mar); DUC well tied‑in.
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Montney: Third horizontal well drilled Q4 2025, completed Q1 2026; early post‑completion phase.
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Share Repurchase
- Normal Course Issuer Bid (April 2025) repurchased 749,900 shares at an average of C$3.56/share (~2% of outstanding).
Notable Quotes
“It’s fair to say that 2025 was a breakthrough year for Bonterra… we delivered record production using significantly less capital.” – Patrick Oliver, President & CEO
Materiality: Material Positive (record production, reserve growth, acquisition, and reaffirmed guidance).