Bonterra Trims Cash Dividend by 25% for January
Bonterra Oil & Gas announced that the January monthly cash dividend will be reduced to $0.12 from the previous amount of $0.16 (reduction of 25 percent) and will be paid on February 27, 2009. The record date for the dividend is February 18, 2009, and the ex-dividend date is February 13, 2009.
The dividend is paid monthly and is subject to commodity prices and production levels. The significant decline in natural gas prices and the
expiration of risk management contracts substantially reduced cash flow. This reduction was partially offset by marginal increases in crude oil prices and levels of production. The reduction in dividend is necessary to preserve balance sheet strength.
The Board of Directors will continue to monitor commodity prices and production volumes and will adjust dividend levels up or down in accordance with cash flow. Bonterra currently intends to continue to pay out between 75 and 80 percent of its annual cash flow and retain the remainder for capital expenditures and/or debt retirement.