CALGARY, ALBERTA--(Marketwired - Nov. 27, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Bonterra Energy Corp. (Bonterra) (
www.bonterraenergy.com) (TSX:BNE) has been notified by the Canada Revenue Agency (CRA) that Bonterra's taxation years, since the November 18, 2008 conversion of Bonterra Energy Income Trust to a corporation, may be reassessed to eliminate certain tax pools. If such reassessments are issued and maintained on appeal, Bonterra will owe total cash taxes of approximately $25 million for the five taxation years since the conversion.
In Management's view, the reassessment of companies with respect to the use of tax pools is part of an overall initiative by the CRA. Management remains of the opinion, that after careful consideration and consultation at the time of the conversion, Bonterra's subsequent tax returns were correct as filed. If the proposed reassessments are issued, management will vigorously defend Bonterra's tax filing position. Any amounts paid to the CRA in connection with such reassessments would be refunded on a successful appeal of the reassessments.
Management confirms that the proposed reassessment will not affect the Corporation's strategy going forward, nor the amount of the monthly dividend distributions.
Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia. The Common Shares are listed on The Toronto Stock Exchange under the symbol "BNE".
Forward Looking Information
This press release contains certain statements or disclosures relating to Bonterra that are based on the expectations of Bonterra as well as assumptions made by and information currently available to Bonterra which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to the reassessment and future taxes payable. Such forward looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond Bonterra's control. Many factors could cause the reassessment and future taxes payable to be materially different from those expressed or implied herein. Bonterra's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at
www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results of Bonterra and accordingly the tax consequences of its operations, which are incorporated herein by reference. Bonterra disclaims any intention or obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.