Bonterra Energy Announces Charlie Lake Well Results, Strategic Charlie Lake Acquisition and 2026 Preliminary Budget Guidance

Core Insights - Bonterra Energy Corp. announced positive results from its latest Charlie Lake wells, with a combined average 30-day peak rate of 2,650 BOE per day, including 1,100 barrels per day of light crude oil [2][8] - The company has entered into a definitive agreement to acquire an adjacent asset in the Greater Bonanza Area for $15.7 million, which is expected to enhance production and cash flow [4][10] - The preliminary budget for 2026 anticipates production growth of 8% year-over-year, with a capital expenditure range of $75 to $80 million [13][21] Charlie Lake Well Results - Completion operations on two new wells were finished in Q4 2025, achieving peak rates of approximately 1,325 BOE per day per well [8] - The new wells utilized three-mile laterals and increased fracture stimulation intensity compared to previous wells [2] - An additional well is planned for completion in Q1 2026 [2] Strategic Acquisition - The acquisition will increase Bonterra's land holdings in the Greater Bonanza Area by 36% and add approximately 760 BOE per day of production [4][9] - The deal includes 21 top-tier drilling locations and enhances the company's existing infrastructure [9][10] - The acquisition is expected to close before December 31, 2025, and will be funded through the company's revolving credit facility [10] 2026 Preliminary Budget Guidance - The budget aims for an average production of 16,200 to 16,400 BOE per day, with a focus on Charlie Lake and Montney assets [13][21] - Expected funds flow is projected between $105 million to $110 million, with free funds flow of approximately $21 million [14][21] - The budget allocates approximately 60% towards the Charlie Lake core area, 10% towards Montney, and 25% towards Cardium [22] Financial Metrics and Projections - The company anticipates a free funds flow yield of approximately 14% based on a WTI price of $60 per barrel [14][21] - The net debt to last twelve months' EBITDA ratio is expected to be around 1.3x by the end of 2026 [14][23] - Hedges are in place for approximately 31% of expected crude oil and 21% of natural gas production to mitigate market volatility [17]