11:44 AM EST, 03/05/2024 (MT Newswires) -- Bonterra Energy Corp. ( BNEFF ) overnight Monday said it has acquired a Charlie Lake asset that is prospective for light oil for total cash consideration of $24.1 million.

The undeveloped asset consists of 79 net sections of land in Bonanza, Alberta, and 330 barrels of oil equivalent per day of production, the company said. The deal closed on March 1.

The acquisition is complementary to Bonterra's existing 37 net sections of land and resulted in the company now having 116 net sections of contiguous land in the light oil prone Charlie Lake.

The company's Charlie Lake footprint forms a new core area for the company, totaling 74,240 net acres.

"This acquisition enables Bonterra to establish a meaningful position in the expanding Charlie Lake play, featuring a long-term development runway with highly economic drilling locations, all of which drives an increasing and sustainable free cash flow profile," said Pat Oliver, CEO of Bonterra.

Charlie Lake production is forecast to reach about 6,000 boe/d by 2026.

The area is estimated to generate average annual funds flow of $55 million, with estimated average annual free funds flow of nearly $25 million upon achieving production of 6,000 boe/d.

Bonterra at last look gained 5.1% in early Tuesday trading.

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