06:22 AM EST, 12/13/2024 (MT Newswires) -- Bonterra Energy ( BNEFF ) late on Thursday presented a 2025 preliminary budget that includes $65 million to $75 million in capital expenditures to maintain production at 14,600 to 14,800 barrels of oil equivalent per day (boe/d), weighted about 52-54% to oil and liquids.

About 60% of the capex will go toward the Charlie Lake core area, 25% toward the Cardium core area, and 15% to infrastructure and facilities improvements and land.

To mitigate risk and add stability during periods of market volatility, Bonterra has put in place hedges on about 34% of expected crude oil output and 22% of expected natural gas production, both net of royalties, through the third quarter of 2025.

The company expects to layer on additional hedges representing about 8% of natural gas production net of royalties through the third quarter of 2025 by the end of 2024.

Funds flow is expected to be between $108 million and $112 million, or $2.89 per share to $3 per share. Free funds flow is expected to be about $32 million, or $0.86 per share, generating roughly 26% free funds flow yield.

"Building on Bonterra's successful execution within its new Charlie Lake and Montney plays in 2024, we are pleased to have established a second core area in the Charlie Lake and an emerging resource play in the Montney, toward which capital will be allocated in 2025 and beyond," said Bonterra President and CEO Patrick Oliver.