CALGARY, ALBERTA--(Marketwire - Nov. 15, 2012) - Bonavista Energy Corporation ("Bonavista") (TSX:BNP) confirms that its monthly cash dividend generated from November production will be $0.12 per common share, payable on December 17, 2012. Our long term objective is to maintain a dividend policy that provides an attractive cash return to our shareholders, while reinvesting the remainder of our funds from operations to increase our production and equity value.
Our dividend policy is reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, our commodity hedging program, current operations and future investment opportunities. We continually monitor the impact of all of these factors and have adjusted our capital program for 2012 accordingly. We remain concerned about sustained low natural gas prices and the more recent decrease in oil and natural gas liquids pricing. While we have preserved the current dividend level through a combination of capital spending adjustments, shareholder participation in our Dividend Reinvestment Plan, Stock Dividend Program and non-core asset divestitures, we will continue to closely monitor the current dividend level throughout the remainder of 2012.
Bonavista has declared this dividend to be paid on December 17, 2012 to common shareholders of record on November 30, 2012, with an ex-dividend date of November 28, 2012. The Board of Directors of Bonavista declared the dividend payable in either cash or common shares at the election of the shareholder. Any common shareholder choosing to receive common shares instead of cash must submit his or her stock dividend confirmation notice no later than 4:30 p.m. (Calgary time) on the fourth business day immediately prior to the record date for the declared dividend payment, being November 27, 2012.
This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.
Stock Dividend Program
At its annual and special meeting of shareholders held on May 3, 2012, the Bonavista shareholders approved the implementation of a Stock Dividend Program which enables common shareholders to elect to receive dividends in the form of common shares at 95% of the weighted average market price calculated 5 days before the payment date and all fees associated with the Stock Dividend Program will be paid by Bonavista. Participation in the Stock Dividend Program is optional.
While the Stock Dividend Program is similar to Bonavista's Dividend Reinvestment Plan, the Stock Dividend Program has certain advantages which are described in more detail in Bonavista's Management Information Circular dated March 19, 2012 which is available on SEDAR at www.sedar.com and on Bonavista's website at www.bonavistaenergy.com. For further information regarding the Stock Dividend Program, please contact Valiant Trust Company at 403-233-2801.
Dividend Reinvestment Plan
Bonavista also has a Dividend Reinvestment Plan which enables eligible common shareholders to increase their investment in Bonavista by reinvesting their monthly cash dividend. We expect to maintain the Dividend Reinvestment Plan as a complement to our Stock Dividend Program indefinitely.
Forward Looking Statements
Corporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, particularly those pertaining to cash dividends, production volumes, commodity prices, operating costs and drilling results, which are considered reasonable by Bonavista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by Bonavista that actual results achieved during the forecast period will be the same in whole or in part as those forecasts.
Keith A. MacPhail
Chairman & CEO
Jason E. Skehar
President & COO
Glenn A. Hamilton
Senior Vice President & CFO
Bonavista Energy Corporation
1500, 525 - 8th Avenue SW
Calgary, AB T2P 1G1