05:13 PM EST, 03/07/2024 (MT Newswires) -- Bonterra Energy Corp. ( BNEFF ) announced Thursday its financial and operating results for the fourth quarter and year ended Dec. 31, 2023.

The related financial statements and notes, as well as management's discussion and analysis (MD&A) along with the annual information form (AIF), all for the period ended Dec. 31, 2023, are on Bonterra's website at www.bonterraenergy.com.

Subsequent to year-end 2023, the company has remained focused on executing its 2024 capital program, having drilled seven gross operated (6.5 net) wells to date, which are expected to be completed, equipped and placed on production by the end of the Q1 2024, along with four gross operated (3.6 net) wells that were drilled in Q4 2023.

With the addition of the Charlie Lake asset, the company's previous focus on M&A activity will be re-directed to the efficient deployment of capital and ongoing operational execution to optimally develop the expanded inventory within Bonterra's three core areas.

In order to protect future cash flows, diversify the company's commodity price exposure and add stability during periods of market volatility, hedges have been layered on approximately 30 percent of Bonterra's expected crude oil and natural gas production through Q3 2024.

Through the next nine months, Bonterra has secured the following risk management contracts: WTI prices between US$50 to US$93.75 per bbl on approximately 2,133 bbls per day; and natural gas prices between $1.81 to $3.56 per GJ on approximately 13,662 GJ per day.

Highlights from 2023 show production averaged 14,204 BOE per day, six percent higher than in 2022, while fourth quarter volumes averaged 15,128 BOE per day, 16 percent above the same period last year, reflecting Bonterra's efficient deployment of capital, high-quality asset base and the outperformance of new wells brought onstream in 2023.

Funds flow totalled $147.3 million ($3.95 per fully diluted share) in 2023, while funds flow in Q4 2023 totalled $40.4 million ($1.08 per fully diluted share).

Free funds flow, defined as funds flow net of development capital and decommissioning expenditures settled, was $12.5 million in 2023 and $22.4 million in Q4 2023, and was directed primarily to reducing net debt, helping further advance the company's goal of reinstating a sustainable return of capital framework.

Net earnings in 2023 demonstrated full cycle profitability, totalling $44.9 million ($1.20 per diluted share), while in Q4 2023, net earnings totaled $15.0 million ($0.40 per diluted share).

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