CALGARY (CP) -- Bonterra Ltd. said Friday it expects to pay dividends in the same monthly amount as it would have paid in distributions if it had remained a trust, subject to market rates for its commodities and production volume.
The payout rate is currently 32 cents per unit per month.
The Calgary-based company also announced it's natural gas output, reserves and tax pools with the acquisition of an unidentified company.
The acquisition will add 650 oil-equivalent barrels per day of production, made up entirely of natural gas and natural gas liquids in British Columbia, as well as 10,000 acres of land and a right to earn an additional 38,000 acres of non-producing lands in Alberta and British Columbia.
The acquisition will also provide $74 million in tax pools, which will bring the total at Bonterra's disposal to $450 million.
Bonterra estimates its output by the end of 2008 will be 5,200 barrels per day, consisting of two-thirds oil and liquids and one-third natural gas, up from the current rate of 4,400 bpd.
The trust said it has decided to convert into a corporation as a result of tax changes that will be fully in effect by January 2011.
"Bonterra Trust's long-term business strategy has been to combine its oil and gas production technical strengths with planned business strategies to generate above average results and returns for unitholders. However, since the October 31, 2006 announcement and subsequent legislation by the Canadian federal government with respect to trust taxation, Bonterra Trust has been of the opinion that the trust structure is no longer capable of providing maximum value to unitholders."
(c) The Canadian Press 2008