Bonterra Energy: Results Move Towards Oil As Recovery Continues

Summary

• Bonterra Energy's results remained strong due to oil sales dominance, with potential benefits from expected natural gas price recovery.
• Management's strategy of adding liquids to production proved wise, mitigating the impact of falling natural gas prices.
• Increased field and cash netbacks are now more dependent upon the price of oil than in the past.
• New wells in the same areas have much better profitability characteristics than was the case in the past.
• I expect this to become a growth and income play.