Bonavista Energy Corporation Announcing 2013 Fourth Quarter Results

Bonavista Energy Corporation Announcing 2013 Fourth Quarter Results 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Bonavista Energy Corporation 
TSX SYMBOL:  BNP 
FEBRUARY 27, 2014 
Bonavista Energy Corporation Announcing 2013 Fourth Quarter Results 
CALGARY, ALBERTA--(Marketwired - Feb. 27, 2014) - Bonavista Energy Corporation
(TSX:BNP) is pleased to report to shareholders its results for the fourth
quarter ended December 31, 2013. Bonavista's Audited Consolidated
Financial Statements and Notes, as well as Management's Discussion and
Analysis for the years ended December 31, 2013 and 2012 are available on SEDAR
at www.sedar.com or can be obtained from Bonavista's website at
www.bonavistaenergy.com. 
/T/ 
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Highlights                                                                  
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Three months ended                  Years ended           
December 31,      %          December 31,       %   
2013     2012 Change        2013      2012  Change  
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Financial                                                                   
($ thousands,                                                               
 except per share)                                                           
Production revenues  245,466  223,021     10%    964,312   832,491      16%  
Funds from                                                                  
 operations(1)       124,354  110,015     13%    477,578   378,667      26% 
  Per share(1) (2)      0.62     0.57      9%       2.42      2.16      12%  
Dividends                                                                   
 declared(3)          38,904   63,481    (39%)   152,968   224,801     (32%)
  Per share             0.21     0.36    (42%)      0.84      1.44     (42%) 
Net income             6,667   14,442    (54%)    49,505    64,202     (23%)
  Per share(4)          0.03     0.07    (57%)      0.25      0.37     (32%) 
Adjusted net                                                                
 income(5)            23,702   16,535     43%     75,297    58,049      30% 
  Per share(4)          0.12     0.09     33%       0.38      0.33      15%  
Total assets                                   4,235,626 4,062,852       4%  
Long-term debt, net                                                         
 of working capital                            1,155,764   963,678      20%  
Long-term debt, net                                                         
 of adjusted                                                                
 working capital(6)                            1,124,198   963,500      17%  
Shareholders'                                                               
 equity                                        2,270,015 2,285,889      (1%) 
Capital                                                                     
 expenditures:                                                              
  Exploration and                                                            
development       111,596   76,937     45%    443,829   402,090      10% 
  Acquisitions, net                                                          
of dispositions     4,815  118,837    (96%)    20,530   (10,956)    287%  
Weighted average                                                            
 outstanding                                                                
 equivalent shares:                                                         
 (thousands)(4)                                                             
  Basic              199,254  192,638      3%    197,296   175,581      12% 
  Diluted            201,756  194,322      4%    199,340   176,747      13%  
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Operating                                                                   
(boe conversion -                                                           
 6:1 basis)                                                                  
Production:                                                                 
  Natural gas                                                                
(mmcf/day)            287      269      7%        278       253      10% 
  Natural gas                                                                
liquids                                                                   
(bbls/day)         15,103   14,563      4%     15,093    14,074       7% 
  Oil (bbls/day)(7)   12,208   12,395     (2%)    12,039    12,997      (7%) 
Total oil                                                                
equivalent                                                              
(boe/day)        75,072   71,842      4%     73,406    69,250       6%  
Product prices:(8)                                                          
  Natural gas                                                                
($/mcf)              3.54     3.22     10%       3.35      2.60      29% 
  Natural gas                                                                
liquids ($/bbl)     49.35    42.60     16%      47.61     45.19       5% 
  Oil ($/bbl)(7)       72.73    75.73     (4%)     79.32     77.30       3%  
Operating expenses                                                          
 ($/boe)                8.77     8.69      1%       8.93      9.07      (2%) 
General and                                                                 
 administrative                                                             
 expenses ($/boe)       1.21     1.22     (1%)      1.15      1.10       5%  
Cash costs                                                                  
 ($/boe)(9)            12.91    12.67      2%      13.00     13.26      (2%) 
Operating netback                                                           
 ($/boe)(10)           20.82    19.12      9%      20.54     17.70      16%  
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Years ended December 31,          %  
Highlights (cont'd)                           2013         2012     Change  
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Drilling (gross wells):                        128          115         11% 
  Natural gas                                   58           47         23% 
  Oil                                           68           67          1%  
Average success rate                        98%          99%        (1%) 
Land:                                                                        
Undeveloped (net acres)              1,281,191    1,253,141          2%  
Total (net acres)                    2,891,947    2,832,701          2%  
Reserves: (11)                                                               
Proved:                                                                  
Natural gas (bcf)                      950.4        921.0          3%  
Oil and natural gas liquids                                            
(mbbls)                              97,822       94,914          3%  
Total oil equivalent (mboe)        256,216      248,409          3%  
Proved plus probable:                                                    
Natural gas (bcf)                    1,472.0      1,372.3          7%  
Oil and natural gas liquids                                            
(mbbls)                             153,195      143,505          7%  
Total oil equivalent (mboe)        398,529      372,220          7%  
% Proved producing                    39%          40%        (1%) 
% Proved                              64%          67%        (3%) 
% Probable                            36%          33%         3% 
  Net present value of future cash                                          
  flow before income taxes ($                                               
  millions):                                                                 
0% discount rate                       9,726        9,005          8%  
5% discount rate                       6,310        5,742         10%  
10% discount rate                      4,608        4,126         12%  
15% discount rate                      3,608        3,183         13%  
Reserve life index (years): (12)                                         
Total proved                             9.1          9.6         (5%) 
Total proved plus probable              13.2         13.5         (2%) 
Reserves (boe per thousand shares                                        
- basic):                                                               
Total proved                           1,282        1,283          -   
Total proved plus probable             1,994        1,924          4%  
Finding and development expenditures -                                      
proved plus probable ($/boe):                                                
Including changes in future                                              
development expenditures                11.95        14.66        (18%) 
Excluding changes in future                                              
development expenditures                11.56        11.23          3%  
Finding, development and acquisition                                        
expenditures - proved plus probable                                         
($/boe):                                                                     
Including changes in future                                              
development expenditures                11.03        11.16         (1%) 
Excluding changes in future                                              
development expenditures                 8.75         6.98         25%  
Recycle ratio - proved plus probable: (13)                                   
Including changes in future                                              
development expenditures                  1.9          1.6         19%  
Excluding changes in future                                              
development expenditures                  2.3          2.5         (8%)
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/T/ 
NOTES: 
/T/ 
(1)   Management uses funds from operations to analyze operating             
performance, dividend coverage and leverage. Funds from operations as  
presented does not have any standardized meaning prescribed by IFRS    
and therefore it may not be comparable with the calculations of        
similar measures for other entities. Funds from operations as          
presented is not intended to represent operating cash flow or          
operating profits for the period nor should it be viewed as an         
alternative to cash flow from operating activities, net income or      
other measures of financial performance calculated in accordance with  
IFRS. All references to funds from operations throughout this report   
are based on cash flow from operating activities before changes in     
non-cash working capital, decommissioning expenditures and interest    
expense. Funds from operations per share is calculated based on the    
weighted average number of shares outstanding consistent with the      
calculation of net income per share.                                  
(2)   Basic funds from operations per share calculations include             
exchangeable shares which are convertible into common shares on        
certain terms and conditions.                                         
(3)   Dividends declared includes both cash dividends and common shares      
issued pursuant to Bonavista's dividend reinvestment plan (DRIP) and   
Bonavista's stock dividend program (SDP). For the three months ended   
December 31, 2013 approximately 1.2 million common shares were issued  
under the DRIP and SDP with an approximate value of $14.2 million. For 
the year ended December 31, 2013, approximately 4.6 million common     
shares were issued under the DRIP and SDP with an approximate value of 
$59.2 million.                                                        
(4)   Basic net income per share calculations include exchangeable shares    
which are convertible into common shares on certain terms and          
conditions.                                                           
(5)   Amounts have been adjusted to exclude unrealized gains and losses on   
financial instrument commodity contracts.                             
(6)   Amounts have been adjusted to exclude associated assets or liabilities 
from financial instrument commodity contracts and decommissioning      
liabilities.                                                          
(7)   Oil includes light, medium and heavy oil.                             
(8)   Product prices include realized gains and losses on financial          
instrument commodity contracts.                                       
(9)   Cash costs equal the total of operating, transportation, general and   
administrative, and financing expenses.                               
(10)  Operating netback equals production revenues including realized gains  
and losses on financial instrument commodity contracts, less           
royalties, operating and transportation expenses, calculated on a boe  
basis.                                                                
(11)  Working interest reserves are gross reserves prior to deduction of     
royalties and without including any of Bonavista's royalty interests. 
(12)  Calculated based on the amount for the relevant reserve category       
divided by the 2014 production forecast prepared by the independent    
reserve evaluator (GLJ).                                              
(13)  Recycle ratio is calculated using operating netback per boe divided by 
finding, development and acquisition expenditures per boe.             
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Three months ended                
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December 31,  September 30,  June 30, March 31,
Share Trading Statistics             2013           2013      2013      2013
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($ per share, except                                                        
 volume)                                                                    
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High                                14.04          14.37     16.77     15.18
Low                                 11.25          12.70     13.33     12.25
Close                               13.92          12.93     13.65     14.94
Average Daily Volume -                                                      
 Shares                         1,000,966        620,864   428,813   676,012
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/T/ 
MESSAGE TO SHAREHOLDERS 
In 2013, Bonavista successfully executed on its commitment to maximize
shareholder value demonstrated by a solid year of performance as we validated
the quality of our asset base and the capabilities of our team. As a key
component of our business plan, we demonstrated a 26% increase in our funds
from operations over 2012, representing growth of 12% on a per share basis.  
Improved natural gas prices and our focus on enhancing our operating and
capital efficiencies were the primary sources for this increase in funds from
operations. This was evidenced by steadily lowering our cost of adding
production to approximately $21,000 per boe per day during the fourth quarter
of 2013 from $32,500 per boe per day during the fourth quarter of 2012, on a
trailing 12 month basis. Additionally, our ability to improve our finding and
development costs by 18% to $11.95 per boe (including changes in future
development expenditures) and our finding, development and acquisition costs to
$11.03 per boe (including changes in future development expenditures) are a
testament to this focus on efficiency gains. Lastly, we achieved a two percent
improvement in operating and cash costs and when included with a seven percent
increase in realized product prices, resulted in a year-over-year improvement
in our recycle ratio to 1.9:1 from 1.6:1 in 2012.  
These achievements were realized by focusing our attention in our West Central
and Deep Basin core areas where we have the opportunity and expertise to drive
enhancements in our performance and execution. Our strategy has led to an
increased concentration of land, production and reserves in these multi-zone,
prolific areas of the Western Canadian Sedimentary Basin. As a result, a group
of non-core assets which cannot compete for investment within these core areas
were rationalized for approximately $110.9 million as part of our concentration
strategy. 
Our business plan to maximize shareholder value is based upon a balanced
approach of generating income and growth. In 2013, we experienced a six percent
increase in our production volumes while our dividend program delivered an
annualized yield of approximately six percent, collectively exceeding our total
return goal. Our growth strategy is centered on achieving total returns in
excess of 10% at fixed commodity prices of $3.50 per gj for natural gas at AECO
and Cdn$95.00 per bbl WTI equivalent over the next five years. The continued
success of this business plan will lie in our ability to remain focused on
continued improvements in both operating and capital efficiencies and our
ability to manage risk and safeguard our funds from operations through our
hedging strategy. 
The successful implementation of our business plan has led to multiple
achievements during 2013, some of which are outlined below. 
Operational and Financial Accomplishments for 2013 include: 
/T/ 
--  Achieved a record average annual production rate of 73,406 boe per day, 
representing a 6% increase over last year and record quarterly 
production of 75,072 boe per day in the fourth quarter. Bonavista is 
currently producing approximately 74,000 boe per day, net of recent 
dispositions of approximately 2,500 boe per day in the first quarter of 
2014 for proceeds of $103 million; 
--  Improved our 2013 operating costs on a per boe basis by 2% to $8.93 per 
boe from $9.07 per boe as compared to 2012. Operating costs for the 
three months ended December 31, 2013 were $8.77 per boe; 
--  Executed an effective capital expenditure program, investing $443.8 
million in exploration and development activities drilling 128 wells 
with an overall success rate of 98%. In the fourth quarter, Bonavista 
spent approximately $111.6 million on exploration and development, 
drilling 27 wells with an overall success rate of 100%; 
--  Production revenues were 16% higher at $964.3 million in 2013 when 
compared to 2012. For the fourth quarter, production revenues were 
$245.5 million representing a 10% increase from the fourth quarter of 
2012; 
--  Realized funds from operations of $477.6 million in 2013 representing a 
26% increase from 2012. Funds from operations during the fourth quarter 
were $124.4 million, a 13% improvement from the same period in 2012; 
--  Managed our exposure to commodity price fluctuations for 2014 resulting 
in approximately 66% of our forecasted net natural gas revenues hedged 
at an average floor price of $3.40 per gj at AECO and 70% of our net oil 
and liquids revenues hedged at an average floor price of Cdn$89.35 per 
bbl WTI. Additionally, in 2015 we have hedged approximately 50% of net 
natural gas revenues at an average floor price of $3.60 per gj at AECO 
and 30% of our net oil and liquids revenues at an average floor price of 
Cdn$90.00 per bbl WTI; 
--  Delivered cumulative dividends of over $2.6 billion or $27.03 per common 
share since we introduced an income component to our shareholder return 
in July 2003; and 
--  Elected to reduce the commitment amount under our bank credit facility 
to $600 million from $1.0 billion. The $400 million reduction in the 
commitment results in annual savings of approximately $1.7 million in 
standby fees or $0.06 per boe on our cash costs. With the reduction, we 
still have committed bank credit availability of approximately $367.8 
million. The weighted average interest rate under the bank facility was 
3.1% for the year ended December 31, 2013.  
/T/ 
2013 Reserves Highlights 
/T/ 
--  Replaced 2013 annual production by 198%, adding 53.1 mmboe of proved 
plus probable reserves, bringing total year end 2013 reserves to 398.5 
mmboe representing a 7% increase over 2012 equivalent to a 4% per share 
increase; 
--  Generated a solid reserve life index of 9.1 years on a proved basis and 
13.2 years on a proved plus probable basis; 
--  Reduced finding and development costs (excluding acquisitions and 
divestitures) by 18% to $11.95 per boe on a proved plus probable basis 
(including changes in future development capital), which reflects the 
improvement in capital efficiencies achieved in 2013 with our 
exploration and development program; 
--  Achieved 2013 finding, development and acquisition costs, including 
changes in future development expenditures, of $14.60 per boe on a 
proved basis ($13.44 per boe excluding changes in future development 
expenditures) and $11.03 per boe on a proved plus probable basis ($8.75 
per boe excluding changes in future development expenditures); 
--  Three year average finding, development and acquisition costs, including 
changes in future development expenditures are $15.31 per boe on a 
proved basis ($10.93 per boe excluding changes in future development 
expenditures) and $12.07 per boe on a proved plus probable basis ($9.37 
per boe excluding changes in future development expenditures); 
--  Generated an attractive proved plus probable operating netback recycle 
ratio of 1.9:1 based on 2013 operating netbacks and 2.2:1 based on 
forecasted 2014 operating netbacks; and 
--  Increased proved plus probable future development capital by 9% to $1.5 
billion, representing the future growth and development potential in our 
asset portfolio. Future development capital as a ratio of forecasted 
2014 capital expenditures and cash flow are 3.1:1 and 2.5:1 times 
respectively.   
/T/ 
The reserves estimates contained in the following tables represent
Bonavista's gross reserves as at December 31, 2013 and are defined under
NI 51-101, as our interest before deduction of royalties and without including
any of our royalty interests. 
A summary of this independent reserves evaluation is presented in the tables
below: 
/T/ 
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Light and            Natural Gas       Total 
Natural Gas  Medium Oil  Heavy Oil     Liquids Reserves(2)
Reserves:(1)(4)        (mmcf)     (mbbls)    (mbbls)     (mbbls)      (mboe)
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Proved:                                                                     
  Proved                                                                     
producing          575,880      21,450      3,153      34,250     154,833
  Proved non-                                                                
producing           19,319         720        431         984       5,356
  Proved                                                                     
undeveloped        355,169       4,914        266      31,652      96,028
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Total proved          950,368      27,085      3,851      66,886     256,216
  Probable            521,634      11,733      2,109      41,532     142,313
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Total proved plus                                                           
 probable           1,472,002      38,818      5,959     108,418     398,529
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Proved reserve life index                                                   
 (years)(3)                                                              9.1
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Proved plus probable reserve life index                                     
 (years)(3)                                                             13.2
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(1)  Bonavista's gross reserves are based on the GLJ reserve report dated    
February 20, 2014, GLJ reserve estimates based on forecast prices and   
costs as of January 1, 2014.                                           
(2)  Boe may be misleading, particularly if used in isolation. A boe         
conversion ratio of 6 mcf:1 bbl is based on an energy equivalency       
conversion method primarily applicable at the burner tip and does not   
represent a value equivalency at the wellhead.                         
(3)  Calculated based on the amount for the relevant reserve category        
divided by the 2014 production forecast prepared by GLJ.               
(4)  Amounts may not add due to rounding.                                    
/T/ 
The following table highlights Bonavista's proved plus probable reserves,
proved plus probable finding and development ("F&D") expenditures
and proved plus probable finding, development and acquisition
("FD&A") expenditures and the associated recycle ratios: 
/T/ 
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2013       2012       2011 
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Proved plus probable reserves (mboe):(1)                                    
  Opening balance                             372,220    341,390    310,749 
  Discoveries and extensions                   41,946     36,645     33,667 
  Acquisitions and dispositions                14,655     20,266     22,402 
  Revisions and economic factors               (3,537)      (844)      (365)
  Production                                  (26,755)   (25,236)   (25,063)
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Closing balance                               398,529    372,220    341,390 
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Operating netback ($/boe) (2)                   20.54      17.70      24.53 
Operating netback ($/boe) three-year                                        
 average(2)                                     20.92      22.03      24.05 
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Finding and development expenditures:                                       
  Total F&D expenditures (excluding changes                                  
in future development expenditures)                                       
($millions)                                  443.8      402.1      453.6 
  Proved plus probable F&D costs ($/boe)(3)     11.56      11.23      13.62 
  F&D recycle ratio(4)                            1.8        1.6        1.8 
  Proved plus probable F&D three-year costs                                  
($/boe)(3)                                   12.09      11.30      11.35 
  F&D recycle ratio three-year average(4)         1.7        1.9        2.1 
  Total F&D expenditures (including changes                                  
in future development expenditures)                                       
($millions)                                  458.8      524.7      480.5 
  Proved plus probable F&D costs ($/boe)(3)     11.95      14.66      14.43 
  F&D recycle ratio(4)                            1.7        1.2        1.7 
  Proved plus probable F&D three-year costs                                  
($/boe)(3)                                   13.62      13.89      13.32 
  F&D recycle ratio three-year average(4)         1.5        1.6        1.8  
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Finding, development and acquisition                                        
 expenditures:                                                              
  Total FD&A expenditures (excluding                                         
changes in future development                                             
expenditures) ($millions)                    464.4      391.1      617.1  
Proved plus probable FD&A costs ($/boe)                                  
(3)                                         8.75       6.98      11.08  
FD&A recycle ratio(4)                         2.3        2.5        2.2  
Proved plus probable FD&A three-year                                     
costs ($/boe)(3)                            9.37       9.02       9.15  
FD&A recycle ratio three-year                                            
average(4)                                   2.2        2.4        2.6 
  Total FD&A expenditures (including                                         
changes in future development                                             
expenditures) ($millions)                    585.1      625.8      778.7  
Proved plus probable FD&A costs                                          
($/boe)(3)                                 11.03      11.16      13.98  
FD&A recycle ratio(4)                         1.9        1.6        1.8  
Proved plus probable FD&A three-year                                     
costs ($/boe)(3)                           12.07      12.82      12.86  
FD&A recycle ratio three-year                                            
average(4)                                   1.7        1.7        1.9 
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(1)  Amounts may not add due to rounding.                                   
(2)  Operating netback is calculated using production revenues including     
realized gains and losses on financial instruments commodity contracts  
less royalties, transportation and operating costs calculated on a per  
barrel of oil equivalent basis.                                        
(3)  Both F&D and FD&A costs take into account reserve revisions during the  
year on a per barrel of oil equivalent basis (6:1).                    
(4)  Recycle ratio is defined as operating netback per barrel of oil         
equivalent divided by either F&D or FD&A costs on a per barrel of oil   
equivalent.                                                             
/T/ 
Future development costs of $1.5 billion at year end 2013 have the following
development schedule: 
/T/ 
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Future Development Costs, Proved plus probable reserves,
Year                                               undiscounted ($ millions)
----------------------------------------------------------------------------
2014                                                                     319
2015                                                                     521
2016                                                                     289
2017                                                                     207
2018                                                                     109
Thereafter                                                                49
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Total                                                                  1,494
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/T/ 
2013 Acquisition and Divestiture Highlights 
/T/ 
--  Completed 30 property transactions in 2013, resulting in net 
expenditures of $20.5 million;  
--  Completed acquisitions of $131.4 million adding production of 3,670 boe 
per day at closing and 2,430 boe per day on average for the year, and 
proved plus probable reserves of 20.5 mmboe; 
--  Divested of $110.9 million of non-core assets comprising 1,290 boe per 
day of production at closing and 745 boe per day on average for the year 
and 5.8 mmboe of proved plus probable reserves; and 
--  Closed a strategic acquisition during the fourth quarter in the Deep 
Basin area of $29 million, adding production of approximately 725 boe 
per day and over 26 Bluesky locations. Since closing, optimization and 
drilling investment of $9.7 million has resulted in production growing 
to approximately 2,100 boe per day.  
/T/ 
2013 Core Area Highlights 
West Central Alberta Core Area 
Hoadley Glauconite Liquids Rich Natural Gas: 
Bonavista drilled 12 horizontal Glauconite wells during the fourth quarter for
a total of 42 wells in 2013. Our activity during the year was focused primarily
on optimizing capital efficiencies. We achieved this through maximizing
facility and infrastructure utilization while reducing the development cost of
this substantial resource through initiatives like our extended reach
horizontal well program. Based upon our first three extended reach horizontal
wells, we experienced an average cost reduction of 13% per well when compared
to the cost of equivalent reservoir access from two wells. As we refine this
extended reach technology, we expect the use of this development technique to
improve capital efficiencies throughout the entire Glauconite trend. 
Our Glauconite horizontal well program in 2013 exceeded our expectations with
average first month production rates of 500 boe per day. Production from the
Hoadley Glauconite play in 2013 was 16,860 boe per day representing a 13%
increase from the prior year. We have been successful with our cost structure
achieving an overall reduction in costs of four percent when compared to 2012.
Bonavista's Hoadley development program generates an internal rate of
return of 50% and a recycle ratio of 3.8:1 at an AECO price of $3.50 per gj.
These compelling economics rank it amongst the top natural gas plays in North
America. Given these attractive economics, the predictability of well
performance and our continued success in optimizing capital efficiencies, we
have increased our 2014 activity by 57%, with plans to spend $141 million
drilling approximately 66 wells. This level of development will result in a
record year of activity for Bonavista within the Hoadley Glauconite trend.  
To support this increase in activity, Bonavista has recently partnered with an
area midstream operator, in the building of two 28 kilometer pipelines which
will provide an incremental 130 mmcf per day of gathering capacity from the
Hoadley Glauconite play to the Rimbey processing facility. The two pipelines
include a 12 inch line to gather natural gas and a six inch line to gather
natural gas liquids. This project is scheduled to be commissioned in the third
quarter of 2014. Additionally, during the first quarter of 2015, we expect the
commissioning of the Rimbey deep cut facility which will positively impact our
economics as a result of increased natural gas liquids recoveries. 
Bonavista continues to be an industry leader in the Hoadley Glauconite play
having drilled a total of 186 horizontal wells since 2008. Our land acquisition
program and down spacing initiatives have resulted in a current drilling
inventory in excess of 400 horizontal locations. With more than 75% of the
original natural gas in place remaining in the reservoir, a stable inventory
contemplating four wells per section, and the predictability and repeatability
of the reservoir, the Glauconite will remain the anchor development project for
Bonavista in 2014.  
Cardium Light Oil:  
Bonavista drilled two horizontal Cardium wells in the fourth quarter bringing
total 2013 activity to 27 wells. The 2013 program involved the development of
emerging areas of our land base such as Lochend and Strachan to confirm our
understanding of reservoir capabilities. Despite this commitment to emerging
areas in 2013, our continued focus on improving capital efficiencies has
resulted in cost reductions on average of approximately $200,000 per well when
compared to 2012.  
The Willesden Green area has been a focus area over the past 18 months. With
numerous wells on production for a full year, we are confident in our
completion approach of utilizing slick water fracture treatments to generate a
10 to 15% improvement in well performance. Our 2014 development plans involve
drilling five wells and initiating a water flood pilot.  
At Lochend, we drilled one well in the fourth quarter and seven wells in total
for the year. Despite being constrained by facility limitations, initial well
performance has been strong with first month production averaging over 300 boe
per day. As a result of this well performance, we invested approximately $9
million in the construction of a 29 kilometer, eight inch pipeline from Lochend
to a deep cut facility at Harmattan during the fourth quarter. This pipeline
addition will not only add to our extensive operated infrastructure, it will
create an unrestricted flow path for our current producing wells and will
adequately accommodate our planned activity for 2014 at Lochend. 
Our 2014 capital expenditure plan is primarily focused on development in
Willesden Green and Lochend, totaling approximately $53 million and drilling 20
wells. We have remained prudently active in the Cardium over the past five
years drilling a total of 113 horizontal wells to date, while maintaining a
healthy inventory of horizontal locations, representing a profitable,
multi-year development opportunity. 
Ellerslie Liquids Rich Natural Gas: 
During the fourth quarter, Bonavista drilled one horizontal Ellerslie oil well
at Garrington, which had an initial 30-day rate of 350 boe per day, which
includes 170 bbls per day of oil production. We expect this well to perform
similar to our offset well that has demonstrated stable production performance
at an average 190 bbls per day of oil over the first eight months. The
significant presence of oil in the Ellerslie at Garrington creates an
attractive netback of $40 per boe resulting in individual well payouts of
approximately one year.  
In the second half of 2013, we drilled our first liquids rich natural gas
Ellerslie horizontal well at Westerose which has demonstrated an initial 90-day
production rate of 840 boe per day. With a well cost of $2.7 million, the
economic performance of this well has encouraged our investment in a three
dimensional seismic program to determine the extent of the Ellerslie reservoir. 
Similarly at Caroline, we drilled an Ellerslie liquids rich natural gas
horizontal well in the second half of 2013. Despite having many operational
challenges with the well, we successfully completed four stages (originally
designed for 12) resulting in a stable rate of 525 boe per day over its first
five months of production.  
We are exceedingly pleased with our development results in the Ellerslie
formation throughout 2013. Hence, our 2014 plan contemplates a drilling program
of 12 wells with an associated budget of approximately $44 million,
representing a two-fold increase in activity over 2013. We will focus on the
opportunities with lower operational risk at Garrington and Westerose where we
anticipate an increase in execution success. As we become more intimate with
the reservoir, we anticipate well performance that continues to meet or exceed
our expectations. With a meaningful oil and natural gas liquids yields of
approximately 100 bbls per mmcf on average, economic performance will continue
to strengthen as we refine our operational approach. As an active operator in
the Ellerslie over the past decade, our strategy had been to continue to
strengthen our land position as we delineated the resource opportunity with
vertical well development. Over the past 24 months we have acquired valuable
horizontal operational experience in the play which has enhanced and
accelerated the value of this play within our organization. Since 2010, we have
grown our inventory of horizontal locations in excess of 200 locations and have
assembled an extensive land base of 135 prospective sections. With netbacks
currently averaging $30 per boe and decline rates approximating 50% in the
first year of production, our 2013 activity has certainly exceeded our economic
expectations. Consequently, we see the Ellerslie becoming a cornerstone of our
development program in the near future. 
Deep Basin Core Area 
Bonavista had an active drilling program in the fourth quarter participating in
10 horizontal wells bringing our total 2013 drilling activity to 21 horizontal
wells in our Deep Basin core area. We have been tremendously pleased with the
overall results and look forward to continued success. 
Current production in the Deep Basin core area is approximately 16,500 boe per
day and has grown 22% from a year ago. Our capital plan for 2014 involves
spending $102 million, drilling 29 wells and infrastructure spending of $34
million. 
Our expansion in this core area is expected to result in capital efficiency
improvements as larger drilling programs take place. Over the past four years,
we have assembled a position of approximately 238,000 net acres with over 200
future horizontal locations. Bonavista currently operates natural gas
processing capacity of approximately 230 mmcf per day and we continue to invest
in additional infrastructure in 2014. We see the Deep Basin core area providing
both near-term and mid-term growth especially as we transition from the
building phase to commercial development with many of our plays. We remain
committed to our Deep Basin area and are confident about its growth profile.  
Wilrich Natural Gas: 
We have experienced tremendous success with the Wilrich formation in 2013.
Building on an important asset acquisition of 5,000 boe per day of production
and 79,000 net acres of land in 2012, we exited 2013 acquiring access to an
additional 26,000 acres of land and have added 2,800 boe per day of production
through our exploration and development program.  
The majority of this land acquisition throughout 2013 has taken place in the
Ansell area of the Deep Basin. Early in 2013, we gained access to 20,000 acres
of Wilrich land at Ansell and have since drilled and completed two horizontal
wells on this acreage. The results of these two wells have exceeded our
expectations at restricted 90-day production rates averaging 900 boe per day
per well. The first well has been on production for 10 months and has
cumulatively produced 1.2 bcf of raw natural gas in that period of time.
Currently, with access to over 44 sections of land at Ansell and the potential
of multiple prospective zones, we have planned an $84 million capital budget
for this area for 2014. We have committed to drilling 12 wells, five of which
will be drilled in the first quarter of 2014. The first two have been drilled
and completed using one drilling pad and have resulted in a combined rate of 34
mmcf per day after a 50 hour flow test. We have also committed to an
infrastructure project in the first quarter of 2014, consisting of a 10 inch,
100 mmcf per day pipeline and a 30 mmcf per day compressor station. The
pipeline and compressor station are expected to be commissioned by April 2014.
The economic performance of our Wilrich play in Ansell is compelling at a
natural gas price of $3.50 per gj at AECO. Single-well economics portray a
recycle ratio of 3.5:1 with a 10 month payout. The impact of a stronger natural
gas price, coupled with the success of our 2013 drilling program speaks well to
the future development of this play. 
At Marlboro, Bonavista holds approximately 28,000 net acres of Wilrich land.
Our 2013 drilling program involved six gross horizontal wells (4.8 net) drilled
into the Wilrich formation with these wells currently producing at a combined
rate of 1,700 boe per day. The Wilrich at Marlboro provides Bonavista with an
additional 35 horizontal drilling locations. Although the natural gas from the
Wilrich formation at Marlboro tends to have less associated natural gas
liquids, economics remain robust due to the prolific production performance
with payouts under two years and rates of return in excess of 35% at a natural
gas price of $3.50 per gj at AECO.  
Bluesky Liquids Rich Natural Gas: 
In the fourth quarter, Bonavista participated in five horizontal Bluesky wells
consisting of two operated and three non-operated, totaling nine wells for
2013. Our latest Pine Creek horizontal well drilled in the fourth quarter is
our highest rate Bluesky result to date, producing at an average 30-day raw
natural gas rate of 8.6 mmcf per day and 35 bbls per mmcf of liquids, of which
50% is condensate. We remained active during the fourth quarter by adding to
our Bluesky position in Pine Creek with the acquisition of approximately 725
boe per day of Bluesky production and access to approximately 12,000 net acres
of Bluesky rights where we have identified an additional 25 horizontal
locations. On a rate of return perspective, the individual well economics of
the Bluesky are the best of our liquids rich natural gas plays.  
Additional Emerging Opportunities 
The Blueberry Montney play remains an important part of our long-term
development plans. Industry activity in the Montney formation remains strong on
all fronts with recent industry acquisition metrics of approximately $4,000 per
acre, solidifying our interpretation of the value of our land base. Through
focused efforts on efficiencies, we reduced our drilling, completion and tie-in
costs to $6.3 million representing a 25% reduction from the average of the
previous wells drilled into the formation. As our industry remains focused on
exporting Canadian natural gas from the west coast, the Blueberry Montney field
will continue to play an important role as a potential supply, as it is
uniquely positioned to participate in LNG export economics. Meanwhile,
Bonavista will continue to improve its understanding of the technology required
to optimize the recovery of the Montney liquids rich resource at our Blueberry
field. As such, we have planned to drill two wells in Blueberry during 2014. 
In addition, Bonavista drilled and completed a Falher horizontal well in the
West Central Alberta core area during the third quarter which has resulted in
an initial 90-day production rate of approximately 600 boe per day including 60
bbls per mmcf of natural gas liquids. With the success of this well, we plan on
additional reservoir delineation by drilling five horizontal wells in 2014.  
Strengths of Bonavista Energy Corporation 
Throughout our history, from an initial restructuring in 1997 to create a high
growth junior exploration company, through the energy trust phase between July
2003 and December 2010, and since January 2011 as a dividend paying
corporation, Bonavista has remained committed to the same operating
philosophies despite the endless volatility and uncertainly inherent in a
commodity business like the energy sector. We have consistently improved the
quality of our projects and have maintained a high level of investment activity
on our asset base. This has resulted in an increase in corporate production by
approximately 110% since converting to an energy trust in July 2003 and a
further 10% since converting back to a corporation three years ago. These
results stem from the expertise of our people and their entrepreneurial
approach to consistently generating profitable development projects in an
unpredictable commodity price environment within the Western Canadian
Sedimentary Basin. Our experienced technical teams have a solid understanding
of our assets as they exercise the discipline and commitment required to
deliver long-term value to our shareholders. We actively participate in
undeveloped land purchases, producing property acquisitions and farm-in
opportunities, which have all enhanced the quality of our extensive drilling
inventory. These activities have led to low cost reserve additions and a
predictable production base that continues to grow at a steady pace. Our
production is currently approximately 65% natural gas weighted and is
geographically focused in multi-zone regions primarily in Alberta. The
predictable production performance and low cost structure of our asset base
ensures favourable operating netbacks in most operating environments.
Furthermore, our assets are predominantly operated by Bonavista, providing
control over the pace of operations and direct influence over our operating and
capital cost efficiencies. 
Our team brings a successful track record of executing low to medium risk
development programs, while incorporating acquisitions and sound financial
management. Our Board of Directors and management team possess extensive
experience in the oil and natural gas business. They have successfully guided
our organization through many different economic cycles utilizing a proven
strategy consisting of disciplined cost controls and prudent financial
management. Directors, management and employees also own approximately 13% of
the equity of Bonavista, aligning our interests with external shareholders. 
Outlook 
With the recent strengthening in natural gas prices due to cold weather across
much of North America, we remain cautiously optimistic as we move into 2014. We
do however remain aware of the robust natural gas production capability on this
continent. This capability has been powered by prolific resource discoveries,
associated natural gas production from oil and liquids drilling and continued
improvements in the techniques used to exploit these resources. Given this
backdrop, Bonavista will maintain a disciplined approach to commodity hedging
and continue to take advantage of the recent increases in natural gas prices to
secure future funds from operations. Operationally, we will continue to focus
on being one of the most efficient producers within our peer group and continue
to pursue low cost, repeatable opportunities throughout our concentrated
portfolio of assets. These strategies coupled with our on-going asset
concentration program will support our commitment to maximize shareholder
returns through a balance of income and growth. 
To support this strategy and in light of the successful first quarter
dispositions, Bonavista has a budgeted capital program of between $460 and $500
million in 2014. This includes spending between $560 and $600 million on
exploration and development activities, offset by approximately $100 million of
dispositions and does not contemplate further acquisitions at this time. The
exploration and development program is expected to result in approximately 150
wells drilled and an average daily production forecast for the year of between
76,000 and 78,000 boe per day. Using the mid-point of our production estimate,
Bonavista will deliver approximately five percent production growth in 2014 in
spite of the non-core dispositions. With current commodity prices and hedges in
place, we expect to exit 2014 with a debt to funds from operations ratio of
approximately 1.8:1 and an all in payout ratio of 106%. 
Bonavista wishes to announce that Mr. Harry Knutson is retiring from the Board
of Directors of the Company effective today. Mr. Knutson has served on the
Board of Directors since 1997 and has provided valuable guidance, expertise and
oversight since then. We would like to thank him for his 17 years of service to
Bonavista and wish him all the best in the future. 
Bonavista previously announced the addition of Ms. Sue Lee as a member of the
Board of Directors in November 2013 and is currently conducting a search for an
additional director, which we expect to communicate at our next annual general
meeting in May. 
We thank our employees and directors for their commitment and dedication to our
strategy throughout the year and our shareholders for their trust and support.
We firmly believe that we have the right people and assets required to execute
our five year strategy with efficiency and precision. Our employees are the
foundation of our continued success.  
On behalf of the Board of Directors 
/T/ 
Keith A. MacPhail             Jason E. Skehar                               
Executive Chairman            President and Chief Executive Officer          
February 27, 2014                                                           
Calgary, Alberta                                                             
BONAVISTA ENERGY CORPORATION                                                 
Supplemental Financial Information                                          
Consolidated Statements of Financial Position                                
---------------------------------------------------------------------------- 
December 31,   December 31, 
(thousands)                                             2013           2012 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(unaudited)                                                                 
Assets:                                                                     
  Current assets:                                                            
Accounts receivable                        $     124,431  $     102,500  
Prepaid expenses                                   7,322         11,089  
Marketable securities                              2,645          2,768  
Other assets                                      13,786         12,191  
Financial instrument commodity contracts             419          8,608 
---------------------------------------------------------------------------- 
148,603        137,156 
  Financial instrument commodity contracts               346          1,224 
  Financial instrument contracts                       8,023          4,293 
  Property, plant and equipment                    3,845,344      3,691,572 
  Exploration and evaluation assets                  222,085        217,382 
  Goodwill                                            11,225         11,225 
---------------------------------------------------------------------------- 
$   4,235,626  $   4,062,852 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Liabilities and Shareholders' Equity:                                       
  Current liabilities:                                                       
Accounts payable and accrued liabilities   $     213,118  $     181,674  
Decommissioning liabilities                        9,313              -  
Dividends payable                                 13,087         21,303  
Financial instrument commodity contracts          31,985          8,786 
---------------------------------------------------------------------------- 
267,503        211,763 
----------------------------------------------------------------------------
  Financial instrument commodity contracts             3,710          1,550 
  Long-term debt                                   1,046,177        889,071 
  Other long-term liabilities                         13,853         13,650 
  Decommissioning liabilities                        397,174        447,753 
  Deferred income taxes                              237,194        213,176 
  Shareholders' equity:                                                      
Shareholders' capital                          2,228,210      2,059,305  
Exchangeable shares                              307,468        405,183  
Contributed surplus                               61,247         44,848  
Deficit                                         (326,910)      (223,447)
---------------------------------------------------------------------------- 
2,270,015      2,285,889 
---------------------------------------------------------------------------- 
$   4,235,626  $   4,062,852 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
BONAVISTA ENERGY CORPORATION                                                 
Supplemental Financial Information                                          
Consolidated Statements of Income and Comprehensive Income                   
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended           Years ended  
December 31,          December 31,  
(thousands, except per share                                                
 amounts)                             2013       2012       2013       2012 
----------------------------------------------------------------------------
(unaudited)                                                                 
Revenues:                                                                   
  Production                     $ 245,466  $ 223,021  $ 964,312  $ 832,491 
  Royalties                        (30,099)   (29,650)  (124,489)  (124,300)
---------------------------------------------------------------------------- 
215,367    193,371    839,823    708,191 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  Realized gains (losses) on                                                 
financial instrument                                                      
commodity contracts              (1,769)       204    (13,652)     8,581 
  Unrealized gains (losses) on                                               
financial instrument                                                      
commodity contracts             (22,742)    (2,793)   (34,426)     8,210 
---------------------------------------------------------------------------- 
(24,511)    (2,589)   (48,078)    16,791 
---------------------------------------------------------------------------- 
190,856    190,782    791,745    724,982 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Expenses:                                                                   
  Operating                         60,601     57,464    239,196    229,847 
  Transportation                     9,206      9,732     36,595     38,367 
  General and administrative         8,361      8,049     30,802     27,927 
  Share-based compensation           5,777      5,845     23,868     19,450 
  Gain on disposition of                                                     
property, plant and equipment   (28,760)   (21,449)   (38,115)   (59,675)
  Loss (gain) on disposition of                                              
exploration and evaluation                                                
assets                              (19)       311    (18,143)     5,938 
  Depletion, depreciation and                                                
amortization                     90,844     90,282    349,285    331,023 
---------------------------------------------------------------------------- 
146,010    150,234    623,488    592,877 
----------------------------------------------------------------------------
Income from operating activities    44,846     40,548    168,257    132,105 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  Finance costs                     20,439      9,493     98,439     53,350 
  Finance income                    16,525      8,791     (3,730)   (11,739)
----------------------------------------------------------------------------
  Net finance costs                 36,964     18,284     94,709     41,611 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income before taxes                  7,882     22,264     73,548     90,494 
  Deferred income taxes              1,215      7,822     24,043     26,292 
----------------------------------------------------------------------------
Net income and comprehensive                                                
 income                          $   6,667  $  14,442  $  49,505  $  64,202 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per share - basic     $    0.03  $    0.07  $    0.25  $    0.37 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per share - diluted   $    0.03  $    0.07  $    0.25  $    0.36 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
BONAVISTA ENERGY CORPORATION                                                 
Supplemental Financial Information                                          
Consolidated Statements of Changes in Equity                                
For the years ended December 31                                              
---------------------------------------------------------------------------- 
Shareholders'     Exchangeable      Contributed 
(thousands)                       capital           shares          surplus 
----------------------------------------------------------------------------
(unaudited)                                                                 
Balance as at December                                                      
 31, 2012                 $     2,059,305  $       405,183  $        44,848  
Net income                              -                -                - 
Issue costs, net of                                                         
 future tax benefit                   (74)               -                - 
Issued for cash on                                                          
 exercise of common share                                                   
 incentive rights                   1,984                -                - 
Exercise of common share                                                    
 incentive rights                   2,708                -           (2,708)
Conversion of restricted                                                    
 share awards                       7,410                -           (7,410)
Share-based compensation                                                    
 expense                                -                -           23,868 
Share-based compensation                                                    
 capitalized                            -                -            2,649 
Issued pursuant to the                                                      
 dividend reinvestment                                                      
 and stock dividend plans          59,162                -                - 
Exchangeable shares                                                         
 exchanged for common                                                       
 shares                            97,715          (97,715)               - 
Dividends declared                      -                -                - 
---------------------------------------------------------------------------- 
Balance as at December                                                      
 31, 2013                 $     2,228,210  $       307,468  $        61,247 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Balance as at December                                                      
 31, 2011                 $     1,446,804  $       585,754  $        32,092  
Net income                              -                -                - 
Issuance of equity, net                                                     
 of issue costs                   334,736                -                - 
Issued for cash on                                                          
 exercise of common share                                                   
 incentive rights                   4,510                -                - 
Exercise of common share                                                    
 incentive rights                   4,609                -           (4,609)
Conversion of restricted                                                    
 share awards                       5,183                -           (5,183)
Share-based compensation                                                    
 expense                                -                -           20,070 
Share-based compensation                                                    
 capitalized                            -                -            2,478 
Issued pursuant to the                                                      
 dividend reinvestment                                                      
 and stock dividend plans          82,892                -                - 
Exchangeable shares                                                         
 exchanged for common                                                       
 shares                           180,571         (180,571)               - 
Dividends declared                      -                -                - 
---------------------------------------------------------------------------- 
Balance as at December                                                      
 31, 2012                 $     2,059,305  $       405,183  $        44,848 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
----------------------------------------------------------- 
Total  
shareholders' 
(thousands)                       Deficit           equity 
-----------------------------------------------------------
(unaudited)                                                
Balance as at December                                     
 31, 2012                 $      (223,447) $     2,285,889  
Net income                         49,505           49,505 
Issue costs, net of                                        
 future tax benefit                     -              (74)
Issued for cash on                                         
 exercise of common share                                  
 incentive rights                       -            1,984 
Exercise of common share                                   
 incentive rights                       -                - 
Conversion of restricted                                   
 share awards                           -                - 
Share-based compensation                                   
 expense                                -           23,868 
Share-based compensation                                   
 capitalized                            -            2,649 
Issued pursuant to the                                     
 dividend reinvestment                                     
 and stock dividend plans               -           59,162 
Exchangeable shares                                        
 exchanged for common                                      
 shares                                 -                - 
Dividends declared               (152,968)        (152,968)
----------------------------------------------------------- 
Balance as at December                                     
 31, 2013                 $      (326,910) $     2,270,015 
-----------------------------------------------------------
----------------------------------------------------------- 
Balance as at December                                     
 31, 2011                 $       (62,848) $     2,001,802  
Net income                         64,202           64,202 
Issuance of equity, net                                    
 of issue costs                         -          334,736 
Issued for cash on                                         
 exercise of common share                                  
 incentive rights                       -            4,510 
Exercise of common share                                   
 incentive rights                       -                - 
Conversion of restricted                                   
 share awards                           -                - 
Share-based compensation                                   
 expense                                -           20,070 
Share-based compensation                                   
 capitalized                            -            2,478 
Issued pursuant to the                                     
 dividend reinvestment                                     
 and stock dividend plans               -           82,892 
Exchangeable shares                                        
 exchanged for common                                      
 shares                                 -                - 
Dividends declared               (224,801)        (224,801)
----------------------------------------------------------- 
Balance as at December                                     
 31, 2012                 $      (223,447) $     2,285,889 
-----------------------------------------------------------
----------------------------------------------------------- 
BONAVISTA ENERGY CORPORATION                                                 
Supplemental Financial Information                                          
Consolidated Statements of Cash Flows                                        
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended           Years ended  
December 31,          December 31, 
(thousands)                           2013       2012       2013       2012 
----------------------------------------------------------------------------
(unaudited)                                                                 
Cash provided by (used in):                                                 
Operating Activities:                                                       
  Net income                     $   6,667  $  14,442  $  49,505  $  64,202 
  Adjustments for:                                                           
Depletion, depreciation and                                              
amortization                   90,844     90,282    349,285    331,023  
Share-based compensation         5,777      7,017     23,868     18,364  
Unrealized (gains) losses on                                             
financial instrument                                                    
commodity contracts            22,742      2,793     34,426     (8,210) 
Gain on disposition of                                                   
property, plant and                                                     
equipment                     (28,760)   (21,449)   (38,115)   (59,675) 
Loss (gain) on disposition                                               
of exploration and                                                      
evaluation assets                 (19)       311    (18,143)     5,938  
Net finance costs               36,964     18,284     94,709     41,611  
Deferred income taxes            1,215      7,822     24,043     26,292 
  Decommissioning expenditures     (10,539)   (11,410)   (30,143)   (25,530)
  Changes in non-cash working                                                
capital items                    (9,870)    (5,206)    (2,830)    13,466 
---------------------------------------------------------------------------- 
115,021    102,886    486,605    407,481 
---------------------------------------------------------------------------- 
Financing Activities:                                                       
  Issuance of senior notes             (49)         -    229,226          - 
  Issuance of equity, net of                                                 
issue costs                           -          -        (99)   331,188 
  Proceeds on exercise of common                                             
share incentive rights              228        355      1,984      4,510 
  Dividends paid                   (24,480)   (38,323)  (102,022)  (137,898)
  Interest paid                    (19,369)   (14,892)   (40,793)   (40,907)
  Proceeds from long-term debt      44,057          -    119,791          - 
  Repayment of long-term debt            -    127,198   (235,970)  (182,329)
---------------------------------------------------------------------------- 
387     74,338    (27,883)   (25,436)
---------------------------------------------------------------------------- 
Investing Activities:                                                       
  Business acquisitions            (29,795)  (155,266)  (102,284)  (155,266)
  Exploration and development     (111,596)   (76,937)  (443,829)  (402,090)
  Property and other business                                                
acquisitions                     (2,435)    (9,491)   (16,275)   (14,626)
  Property dispositions             27,415     45,920     98,029    180,848 
  Office equipment                  (2,066)      (704)    (6,183)    (3,307)
  Changes in non-cash working                                                
capital items                     3,069     19,254     11,820     12,396 
---------------------------------------------------------------------------- 
(115,408)  (177,224)  (458,722)  (382,045)
----------------------------------------------------------------------------
Change in cash                           -          -          -          - 
Cash, beginning of period                -          -          -          - 
----------------------------------------------------------------------------
Cash, end of period              $       -  $       -  $       -  $       - 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
FORWARD-LOOKING INFORMATION 
Forward-Looking Statements - Certain information set forth in this document,
including management's assessment of Bonavista's future plans and
operations, contains forward-looking statements including; (i) forecasted
capital expenditures and plans; (ii) exploration, drilling and development
plans, (iii) prospects and drilling inventory and locations; (iv) anticipated
production rates; (v) anticipated operating and service costs; (vi) our
financial strength; (vii) incremental development opportunities; (viii) reserve
life index; (ix) total shareholder return; (x) growth prospects; (xi) asset
acquisition and disposition plans; (xii) sources of funding, which are provided
to allow investors to better understand our business. By their nature,
forward-looking statements are subject to numerous risks and uncertainties;
some of which are beyond Bonavista's control, including the impact of
general economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates, environmental
risks, changes in environmental tax and royalty legislation, competition from
other industry participants, the lack of availability of qualified personnel or
management, stock market volatility and ability to access sufficient capital
from internal and external sources. Readers are cautioned that the assumptions
used in the preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Bonavista's actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements or if any of them
do so, what benefits that Bonavista will derive there from. Bonavista disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by law.  
Non-IFRS Measurements - Within this press release, references are made to terms
commonly used in the oil and natural gas industry. Management uses "funds
from operations" and the "ratio of debt to funds from
operations" to analyze operating performance and leverage. Funds from
operations as presented does not have any standardized meaning prescribed by
IFRS and therefore it may not be comparable with the calculation of similar
measures for other entities. Funds from operations as presented is not intended
to represent operating cash flow or operating profits for the period nor should
it be viewed as an alternative to cash flow from operating activities, net
income or other measures of financial performance calculated in accordance with
IFRS. All references to funds from operations throughout this report are based
on cash flow from operating activities before changes in non-cash working
capital, decommissioning expenditures and interest expense. Basic funds from
operations per share is calculated based on the weighted average number of
common shares outstanding in accordance with International Financial Reporting
Standards. Operating netbacks equal production revenue and realized gains or
losses on financial instrument commodity contracts, less royalties,
transportation and operating expenses calculated on a boe basis. Total boe is
calculated by multiplying the daily production by the number of days in the
period. Management uses these terms to analyze operating performance and
leverage. 
Conversion of Natural Gas to Barrels of Equivalent (BOE) 
To provide a single unit of production for analytical purposes, natural gas
production and reserves volumes are converted mathematically to equivalent
barrels of oil (boe). We use the industry-accepted standard conversion of six
thousand cubic feet of natural gas to one barrel of oil (6 mcf = 1 bbl). The
6:1 boe ratio is based on an energy equivalency conversion method primarily
applicable at the burner tip. It does not represent a value equivalency at the
wellhead and is not based on either energy content or current prices. While the
boe ratio is useful for comparative measures and observing trends, it does not
accurately reflect individual product values and might be misleading,
particularly if used in isolation. As well, given that the value ratio, based
on the current price of crude oil to natural gas, is significantly different
from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be
misleading as an indication of value. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Bonavista Energy Corporation
Keith A. MacPhail
Executive Chairman
(403) 213-4300
or
Jason E. Skehar
President & CEO
(403) 213-4300
or
Glenn A. Hamilton
Senior Vice President & CFO
(403) 213-4300 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
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-0- Feb/28/2014 02:30 GMT
 
 
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