CA - Bonterra Energy: The Transition To More Profitable Production Continues

2025-03-30 21:52:05 ET

Summary

• Bonterra Energy has acquired profitable Charlie Lake acreage.
• The transition from a near zombie corporation to a cash generating (conservative debt ratio) company is well underway.
• Charlie Lake wells currently offer top returns.
• Majority of revenue now comes from oil.
• Shareholder returns may soon begin.

The last article noted that Bonterra Energy ( OTCPK:BNEFF ) (BNE:CA) had purchased some acreage containing the very profitable Charlie Lake interval. This acreage may be emphasized during the current period of weak pricing, while other intervals emerge as technology moves forward. The company is now on a growth path after having been primarily a dividend play back when I first covered it. It has been since March 2020 when the last dividend was paid. But when it is time for shareholder returns, the more profitable production mix should assure a very robust shareholder return program that may well dwarf what came before it.

Profitability Comparison

Before fiscal year 2020, this was a natural gas producer that focused on income rather than growth. But a lot of Canada now has discoveries from advancing technology that allow these formerly natural gas plays to produce the oil and gas that used to be too costly to produce....

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