Bonterra Divests Portion of Shaunavon Production to Eagle Rock
Bonterra has entered into an agreement to divest of a portion of its Shaunavon oil production to Eagle Rock Exploration Ltd. The disposition consists of approximately 200 barrels per day of medium gravity oil production and 18.5 sections of land in the Eastend area of Southwestern Saskatchewan. The disposition has an effective date of October 1, 2009, and is anticipated to be closed prior to November 6, 2009.
The Company will receive $24,000,000 in cash and 30,769,200 common shares in Eagle Rock. The share ownership represents approximately 4.2 percent of the outstanding common shares of Eagle Rock once that company completes its financings and this acquisition.
Proceeds from the sale will be used to accelerate Bonterra's horizontal Cardium development program.